The automatic stay provides a period of time in which all judgments, collection activities, foreclosures, and repossessions of property are suspended and may not be pursued by the creditors on any debt or claim that arose before the filing of the bankruptcy petition. A stay of creditor actions against the debtor automatically goes into effect when the bankruptcy petition is filed. The stay provides a breathing spell for the debtor, during which negotiations can take place to try to resolve the difficulties in the debtor's financial situation.

In Washington state, as in all states across the U.S., the automatic stay is a provision under federal bankruptcy law that immediately stops most creditors from pursuing debt collection against individuals or entities once they have filed for bankruptcy. This stay is automatic and requires no judicial action to come into effect. It halts actions such as foreclosures, repossessions, evictions, garnishments, attachments, utility shut-offs, and debt collection harassment. The automatic stay is intended to provide a 'breathing spell' for the debtor, allowing them time to reorganize their finances without the pressure of creditor actions. It also ensures that all creditors are treated fairly by preventing one creditor from pursuing an aggressive action that could be detrimental to other creditors. The scope and duration of the automatic stay may vary depending on the type of bankruptcy filed and the specific circumstances of the debtor's case. Creditors can petition the court for relief from the stay if they believe their interests are unjustly harmed.