Florida Bankruptcy: Automatic Stay Protection

When facing financial pressures, every day comes with reminders of your situation: new

bills that you cannot afford, late notices, and calls from creditors. In these tough times what

you really need it a timeout—a pause from the constant pressure so that you have time to

reorganize, plan, and figure out a reasonable way to get back on sound financial footing.

The Benefits of an Automatic Stay

If you are in this situation, then the automatic stay protections that come with bankruptcy may

offer the help you need. The benefit of filing a Chapter 7 bankruptcy or Chapter 13 bankruptcy

is the automatic stay which prevents many creditors from engaging in debt collection efforts. An

automatic stay can apply to many different collection activities, including:

• Creditors who are trying to garnish your wages

• A bank or other lender seeking to foreclose on your own

• Creditors making aggressive or harassing calls to your home, work, or your relatives

• Dealers or lenders seeking to repossess your vehicle

There are a few debt actions that proceed even with the stay—such as child support collections.

An experienced bankruptcy attorney can explain how the law applies in your specific case.

What is an Automatic Stay?

An automatic stay is an “injunction” against certain creditor actions—essentially a legal order

that prevents creditors from engaging in collection activities. Importantly, the injunction goes

into effect as soon as the bankruptcy petition is filed. This offer quick relief from the building

pressure of creditors. Because the automatic stay is a court order, a creditor may be punished if

they violate the order and willfully continue to engage in prohibited collection activities.

Both Chapter 7 and Chapter 13 bankruptcy come with an automatic stay. The injunction is an

important way to protect property for a period of time while you are in the process of discharging

your debts. In Chapter 13 bankruptcy, the stay is useful in providing extra time to craft a

repayment plan to catch up on missed mortgage payments or to restructure a car payment.

In some cases, a creditor can seek to lift the stay by asking the court for permission to continue

their collection activity—such as car repossession or a home foreclosure. If the court grants this

motion to lift the stay, then collection actions may continue, but it would only regain the property

and not collection against the individual. It is impossible to determine ahead of time how a court

will rule, but an attorney can explain the likely outcome in your specific case.

Timing Matters – Act Quickly

It is critical to seek help with these issues as soon as feasible. There is no benefit from waiting

until your financial situation deteriorates completely. Many actions cannot be undone—such as

a home foreclosure—but they can be prevented. An automatic stay is a preventative step that

can help almost immediately.

Florida Bankruptcy: Automatic Stay Protection

When facing financial pressures, every day comes with reminders of your situation: new

bills that you cannot afford, late notices, and calls from creditors. In these tough times what

you really need it a timeout—a pause from the constant pressure so that you have time to

reorganize, plan, and figure out a reasonable way to get back on sound financial footing.

The Benefits of an Automatic Stay

If you are in this situation, then the automatic stay protections that come with bankruptcy may

offer the help you need. The benefit of filing a Chapter 7 bankruptcy or Chapter 13 bankruptcy

is the automatic stay which prevents many creditors from engaging in debt collection efforts. An

automatic stay can apply to many different collection activities, including:

• Creditors who are trying to garnish your wages

• A bank or other lender seeking to foreclose on your own

• Creditors making aggressive or harassing calls to your home, work, or your relatives

• Dealers or lenders seeking to repossess your vehicle

There are a few debt actions that proceed even with the stay—such as child support collections.

An experienced bankruptcy attorney can explain how the law applies in your specific case.

What is an Automatic Stay?

An automatic stay is an “injunction” against certain creditor actions—essentially a legal order

that prevents creditors from engaging in collection activities. Importantly, the injunction goes

into effect as soon as the bankruptcy petition is filed. This offer quick relief from the building

pressure of creditors. Because the automatic stay is a court order, a creditor may be punished if

they violate the order and willfully continue to engage in prohibited collection activities.

Both Chapter 7 and Chapter 13 bankruptcy come with an automatic stay. The injunction is an

important way to protect property for a period of time while you are in the process of discharging

your debts. In Chapter 13 bankruptcy, the stay is useful in providing extra time to craft a

repayment plan to catch up on missed mortgage payments or to restructure a car payment.

In some cases, a creditor can seek to lift the stay by asking the court for permission to continue

their collection activity—such as car repossession or a home foreclosure. If the court grants this

motion to lift the stay, then collection actions may continue, but it would only regain the property

and not collection against the individual. It is impossible to determine ahead of time how a court

will rule, but an attorney can explain the likely outcome in your specific case.

Timing Matters – Act Quickly

It is critical to seek help with these issues as soon as feasible. There is no benefit from waiting

until your financial situation deteriorates completely. Many actions cannot be undone—such as

a home foreclosure—but they can be prevented. An automatic stay is a preventative step that

can help almost immediately.

Contact a Bankruptcy Attorney Today

If you would like to learn more about how an automatic stay can help in your situation, seek our

legal help as soon as possible. Dolaghan Law has offices in Jacksonville, and Daytona, to serve

residents in Northeast Florida and the surrounding counties. Please call us at 904-354-4935 or

send us a message online.

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