[2][3] A filed bankruptcy petition immediately operates as an automatic stay, holding in abeyance various forms of creditor action against the debtor.
The court may give relief to the creditor in the form of periodic cash payments or an additional or replacement lien on the property.
Congress required that debtors in this situation either file a plan that has a reasonable chance of being accepted within a reasonable amount of time, or make monthly payments to each such secured creditor in the amount equal to interest at a current fair market rate on the value of the creditor's real estate.
First, any eviction proceedings in which the landlord obtained a judgment of possession prior to the filing of the bankruptcy petition may be continued.
Pursuant to the new provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act, certain restrictions were added to section 362.