a person files for either Chapter 7 or Chapter 13 bankruptcy, an
immediate automatic stay takes effect pursuant to section 362 of the
U.S. Bankruptcy Code.
does that mean in plain-speak?
means any collection efforts by a creditor, including garnishments
and lawsuits, must stop. The stay provides protection from nearly all
According to an experienced bankruptcy lawyer in Pasco County, the stay remains in place on a first bankruptcy petition until you are either discharged in bankruptcy or the bankruptcy action is dismissed.
the Stay Cannot Do
automatic bankruptcy stay operates as an injunction to relieve many
of the financial and emotional burdens that come with creditors and
collection agencies contacting you. Even foreclosure proceedings must
Chapter 7 or Chapter 13 filing also includes a list of your
creditors. All creditors on that list are notified of your bankruptcy
the protection of the automatic stay, there are a few things it won’t
do. Paternity actions and petitions to set or collect child support
cannot be stayed. Criminal actions won’t be stayed either, and if a
sentence in a criminal case included payment of a fine, the law
requires it to be paid. Tax deficiencies and loans from retirement
plans are also unprotected.
the Automatic Stay
If a creditor wants to collect
on a debt after an automatic stay has been imposed, that creditor
must obtain permission from the bankruptcy court. Due process of law
gives you an opportunity to object to lifting the stay. There are
times when such motions are granted, and the creditor will be
permitted to resume its collection efforts.
can overwhelm perfectly reasonable people, especially when large
medical bills are involved. If you’re contemplating a bankruptcy
filing, contact a bankruptcy lawyer in Pasco County at our offices by
calling 813-254-5696 to arrange for a free consultation and financial
You can also use our easy contact form at www.attorneyfortampabay.com. We’ll listen to you carefully and advise you whether a Chapter 7 or Chapter 13 bankruptcy is the right fit for you.
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