It stops almost everything, stops it immediately.  That collection company has to stop garnishing your wages. The county judge has to stop that lawsuit. The foreclosure sale on your house stops.  Visa cannot so much as dial the phone to call you.  Yet, if you owe a bank (or other creditor) for a payment on a car or house, the bank is likely going to be able to convince the bankruptcy court to lift the stay if they can convince the judge that they are not “adequately protected.”  Why?

At first, I thought “adequate protection” was Congress’s way of trying to throw creditors a bone.  That is, Congress gave a bankruptcy filers a lot of power, but Congress also wanted a way to protect a secured creditor’s collateral.

But when I looked at the legislative commentary, Congress didn’t mention that particular concern in 1978. Instead, it seems like Congress was more concerned about Fifth Amendment Takings issues.