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Does the existence of a debtor-defendant bring everything to a screeching halt? The answer is usually "no.As its name suggests, the automatic stay prevents any further collection activity after the petition is filed. The automatic stay is not absolute – creditors can ask the bankruptcy court to remove the stay, called lifting the automatic stay. Bankr. How to Obtain Stay Relief. A Chapter 7 case stops foreclosure proceedings (a lawsuit to take your home if you do not pay your mortgage payments). An interlocutory appeal shall not stay proceedings in the trial court unless the trial court or a judge of the Court of Appeals so orders. Modification of the stay alters the stay so that the creditor can proceed on some actions, but not others. Affirm the credit union makes no unauthorized loans; and,. 0. Documentation.