Florida Bankruptcy: Automatic Stay Protection
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.