CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Automatic Stay and Bankruptcy: What it Will and Won’t Do

Fight debt collectorBankruptcy Automatic Stay

The automatic stay is what pushes many people into filing for bankruptcy. They might be headed in that direction anyway and filing is imminent, but it’s the benefit of stopping creditors from collection actions, at least temporarily, that pushes them over the hump of filing.

Unfortunately, for all the automatic stay can do for someone struggling with debt, there are a few things it cannot do. It’s important to understand the power of the automatic stay and to know what to expect before filing so your expectations are reasonable.

What the Automatic Stay Does for You

First, let’s look at how the stay works and what it does.

An automatic stay is a court injunction that bars creditors from collection efforts against a person who has filed for bankruptcy. It goes into effect the moment you file and can only be lifted by the court after a creditor has shown it has the authority to continue collecting despite bankruptcy.

This means if you’re dealing with daily calls from creditors and constant nagging requests for payment, the automatic stay will bring an end to those troubles. It will also stop foreclosure efforts on your home, at least temporarily. You can read more about the power of the automatic stay as it relates to foreclosure here.

At the very least, the automatic stay gives you time to get organized and come up with a plan.

What the Automatic Stay Won’t Do

Unfortunately, as powerful as the automatic stay can be when you file for bankruptcy, there are a few things it can’t help with.

For instance, the automatic stay does nothing regarding family law issues. If you’re attempting to modify child support or alimony arrangements or you’re dealing with any other legal issue related to family matters the automatic stay will have no effect. Collection efforts related to non-payment of court-ordered child support or alimony will continue despite the automatic stay.

The automatic stay also stops any law enforcement action against you. If a criminal prosecution is in progress or you are under investigation when you decide to file for bankruptcy, filing will not affect those matters.

Additionally, some actions related to taxes can continue regardless of the automatic stay. State and federal government officials cannot record liens or levy assets for collection once you’ve filed, but they can demand you file your return, audit any returns you’ve already filed, and assess taxes you might owe.

The automatic stay also does not stop court-ordered sanctions for misconduct in litigation. If there is a civil contempt sanction against you the automatic stay does nothing to prohibit it.

How the Automatic Stay Helps You

Despite the automatic stay not being all-powerful, it’s still going to go a long way in helping you if you are struggling financially. There are a few specific things it won’t do, but overall you’re going to experience a great deal of relief once it goes into action.

Every case is different, so it’s important to speak to an attorney about your situation and find out what the automatic stay will and will not do for you.

To learn more or to determine how the automatic stay will affect your case, contact the Law Office of Robert M. Geller at 813-254-5696 to discuss your situation.

Archive

Tampa Bankruptcy Law Blog

How Will Filing for Bankruptcy Affect My Credit?

Will Bankruptcy Affect My Credit? Not paying your bills affects your credit negatively. And yet problems with credit are one...
Read More

Behind or In Default on Your Student Loan? Here’s What You Should Know

Student Loan Default If you’ve fallen behind on student loan payments or your student loans are in default, you aren’t...
Read More

Will Bankrutcy Affect My Job? Learn How Filing Affects You in the Workplace

Will Bankruptcy Affect My Job? Filing for bankruptcy raises many considerations. One of the most important is whether or not...
Read More

Can Bankruptcy Help Me If I’m Behind on Child Support?

Bankruptcy and Child Support Bankruptcy can help you with a lot of things. It can help you stop calls from...
Read More

Can You File for Bankruptcy When You’re Unemployed?

Bankruptcy and Unemployment Being in debt is bad enough, but if you’ve lost your job recently or accumulated debt because...
Read More

Bankruptcy and Eviction History

Eviction With the rate of evictions on the rise in recent months and the expectations that eviction numbers will grow,...
Read More

What to Expect Once You’ve Decided to File Bankruptcy from Home

File Bankruptcy from Home There are a few things that happen when you file bankruptcy from home. An automatic stay...
Read More

Will Filing for Bankruptcy Affect My Job Search? What You Need to Know about Unemployment and Bankruptcy

Unemployment and Bankruptcy Searching for a job when you are faced with a dire financial situation is difficult. If you’ve...
Read More

Will I Need to Go to Court If I File for Bankruptcy?

File for Bankruptcy from Home One of the most intimidating aspects of filing for bankruptcy is meeting in person with...
Read More

COVID-19 and Debt – 5 Ways the Pandemic is Leading More People to Bankruptcy

COVID-19 Debt If you’re considering bankruptcy you aren’t alone. The last few months of 2020 have brought a great deal...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo comodo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions