Section 362 of the Bankruptcy Code, commonly known as the “automatic stay”, prevents creditors from taking action to recover on a claim against a debtor in bankruptcy or to recover property in which a debtor has an interest. In essence, that means creditors must stop any action they are taking against debtor and resolve everything in Bankruptcy Court.

Over the years, Congress has created many exceptions to the automatic stay, but the general principle behind the automatic stay is that the Bankruptcy Court should be the exclusive forum for resolution of claims against debtors in bankruptcy.