Filing Bankruptcy Again? Why the Automatic Stay Might Not Protect You This Time

One of the biggest benefits of filing for bankruptcy is the automatic stay—the court order that makes debt collectors stop in their tracks. Phone calls? Gone. Lawsuits? Paused. Foreclosures? Halted.

But what if this isn’t your first rodeo?

If you’ve filed bankruptcy once—or more than once—within the past year, the automatic stay may only partially protect you… or not apply at all.

Here’s how it works—and how to protect yourself from losing everything just because you filed at the wrong time or didn’t follow the right steps.

---

📊 Quick Guide: What Happens to the Automatic Stay?

---

😬 One Dismissed Case in the Last Year? You’re on a 30-Day Clock

Filed a case that got dismissed within the past year? You’re on the clock. The automatic stay will only last 30 days unless you take action.

To keep your protection:

• You need to file a motion to extend the stay ASAP.

• The court must approve it within 30 days of your new case filing.

• You have to show your case was filed in good faith (not just to stall creditors).

📍 Example: In In re Bronson, the debtor filed for bankruptcy again but didn’t schedule a hearing fast enough. By the time the court got to it, the 30 days had expired—and creditors were free to take action. The judge said: sorry, too late.

---

❌ Two or More Dismissals? You Get Zero Protection (Unless…)

If you’ve had two or more bankruptcies dismissed in the last year, the automatic stay doesn’t even start. That’s right:

• Your case is active, but creditors can still call.

• Repos and foreclosures? Still on the table.

• Lawsuits? Full steam ahead.

BUT—you can fix it by:

• Filing a motion to impose the stay.

• Scheduling a court hearing.

• Proving that your new case is filed in good faith.

📍 Example: In Miley v. Thornburg, the debtor filed her third bankruptcy but didn’t get the court to impose the stay. The bank moved forward with foreclosure, and it was completely legal.

---

💡 What Does “Good Faith” Mean?

It’s all about intent. The court wants to know:

• Are you filing to get real relief—or just to stall?

• Have your finances changed?

• Are you serious about following through this time?

---

⚖️ Does the Stay Cover Everything?

Not always. Even if you lose protection as an individual, you may still have a shield around your property—like your car or house—if it’s considered part of the bankruptcy estate.

This was clarified in In re Bell, where the court said: the stay might end against you personally, but your estate’s assets can still be protected in some cases.

---

🙋 Why So Many Pro Se Filers Get It Wrong

If you’re filing bankruptcy on your own or using a cheap document preparer, you might think just “filing the case” stops everything.

Not true—especially if you’ve filed before. Bankruptcy law gets tricky with repeat filings. One wrong move and you could lose your protections—and fast.

---

🗽 In New York? Courts Don’t Mess Around

Courts in the Second Circuit (New York, Connecticut, Vermont) strictly enforce these stay rules. Judges here expect good-faith filings and timely motions.

📍 In Fannie Mae v. Kennawi, the debtor lost their house even after filing again because the court found no stay went into effect. Foreclosure continued.

---

✅ Bottom Line: Know the Rules or Lose the Protections

You don’t get unlimited chances with bankruptcy. If your case was dismissed once or twice already, your new filing won’t automatically protect you.

You need to:

• Know the rules.

• Move fast.

• File the right motion.

• Prove you’re serious this time.

---

👋 Need Help? That’s What I Do.

I’m William Waldner, a New York bankruptcy attorney who’s helped thousands of people reset their finances. If you’re in a repeat filing situation, I can help you make the right move—before the clock runs out.

Call me now or schedule a free consultation online. You only get one shot at this. Let’s make it count.