The automatic stay of proceeding in bankruptcy is a broad power that stops all forms of collection efforts. According to the Wallet Hub, this includes judgments against the individual, recording of leans, the attempt to execute on a property or repossess collateral, and others. The debtor in possession can combat or thwart all of these efforts by creditors and their attempt to collect against the debtor.

There are exceptions to this proceeding. According to the American Bankruptcy Institute, a creditor can contest the order to stay and seek a relief that states that they can actually collect against the debtor. This is normally done with secured creditors. When the debtor has no equity in the property that is securing the debt to the secured party, then that property is not necessary for the adequate reorganization of the estate. In some situations, you are going to have real estate buildings or things like that that are necessary for the reorganization of the estate. If that does not exist and no equity is present, then you can get relief for the stay.

There is a general exception to this cause. For example, a creditor can present adequate cause such as they are not adequately assured that the value of their security interest is not being diminished or the value of the property is not being diminished. There are a couple of notable exceptions to when a court will stop collection efforts. These include certain paternity, alimony or support type situations. Some of these regulatory or police power cases are an agency type situation where they are bringing a pseudo criminal action against infringement of some regulation law.