Can a creditor violate the automatic stay?

Creditors who violate the automatic stay can be held in contempt of court. You may recover actual damages, attorney fees, and in some cases punitive damages. Common violations include continued collection calls, repossessing property, or proceeding with a lawsuit after notice of the filing.

How long does the automatic stay last?

The stay lasts until the bankruptcy case is closed, dismissed, or the debtor receives a discharge. If you filed a previous case that was dismissed within the past year, the stay may only last 30 days unless you file a motion to extend it.

Does the automatic stay stop eviction?

The stay temporarily stops most evictions, but landlords can request relief from stay. If the landlord already obtained a judgment for possession before you filed, the stay may not apply at all. The protection is limited and temporary in most eviction situations.

What should I know before filing bankruptcy?

Bankruptcy is a legal process that can eliminate or restructure debts, but it has lasting effects on your credit and financial life. Before filing, understand which debts can be discharged, what property you can keep through exemptions, and which chapter fits your situation.

Who the 1301 Codebtor Stay Protects [2026]: Consumer Debt Cosigners, Not Business Guarantors

The automatic stay is a court order that takes effect immediately when you file bankruptcy. It stops most collection actions, lawsuits, foreclosures, repossessions, wage garnishments, and creditor harassment. It remains in effect until the case is closed or the debt is discharged.

Cosigners on Consumer Debts

The codebtor stay under Section 1301 protects individuals who are liable alongside the debtor on a consumer debt. This includes cosigners, co-borrowers, and guarantors.

Common examples: parents who cosigned student loans, spouses on joint credit cards, friends who guaranteed an apartment lease, family members who co-borrowed on a vehicle loan.

What Is NOT Protected

The codebtor stay applies only to consumer debts - not business debts. A business partner who co-signed a commercial lease is not protected.

The stay does not apply in Chapter 7 or Chapter 11. It is unique to Chapter 13. If you convert your case to Chapter 7, the codebtor stay lifts immediately.

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Related Guides

Section 362 Automatic Stay