Section 362 of the Bankruptcy Code provides for an "automatic stay" upon the filing of a bankruptcy petition by an individual or business debtor. The automatic stay operates as a stay or injunction of certain actions against the debtor, including actions to recover a prepetition debt or acts against the debtor's property.

The automatic stay is one of the fundamental protections provided by the bankruptcy code. The purpose of the automatic stay is to provide the individual or business debtor with a "breathing spell" in which to attempt to reorganize its affairs. Willful violations of the automatic stay may result in the imposition of sanctions by the bankruptcy court.