' Bankruptcy Law Stops Creditors - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

How This Important Bankruptcy Law Stops Creditors in Their Tracks

florida bankruptcy attorneyOne of the greatest benefits of filing for bankruptcy is the automatic stay. The automatic stay is a court order that stops collection efforts and most civil lawsuits related to debt. Even if the stoppage is temporary, it gives you breathing room to determine your next move. Florida bankruptcy attorneys explain the bankruptcy process to you and help you understand the benefits of the automatic stay.

What Does the Automatic Stay Stop When It’s Enacted?

  • Threats to disconnect utilities. If you’re receiving calls or letters threatening to turn off your gas, electric, water, or telephone service, the automatic stay ensures disconnection cannot occur for at least 20 days. This isn’t to say that you should file for bankruptcy if you’ve fallen behind on your phone or gas bill. But if you’re dealing with a mountain of debt and shutoff is a concern, filing for bankruptcy pauses the process and allows your utilities to remain on.
  • Collection of public benefit overpayments. Anyone who receives an overpayment of public benefits could be responsible for repaying the overpayment in future benefit checks. They’ll even need to pay back the overpayment if they no longer receive benefits. The automatic stay prevents the entity that issued overpayment from collecting that amount from you.
  • Wage garnishments. Once the automatic stay goes into effect, you’ll get to take home your full salary, as long as the garnishment.
  • Foreclosure actions. How effective filing for bankruptcy is at stopping foreclosure efforts varies from case to case and is based on where in the process your mortgage lender is. However, filing for bankruptcy is one of the most effective ways to help with foreclosure. Additionally, you’ll want to carefully consider which chapter of bankruptcy will work best for you as a homeowner. Most homeowners file for Chapter 13 because it usually allows them to catch up on mortgage payments and stay in their homes.
  • Eviction efforts. Like foreclosure, eviction puts you at risk of being homeless due to financial problems. The automatic stay stops eviction efforts as long as you file before your landlord receives a judgment from the court.

If you have questions about current eviction and foreclosure restrictions due to COVID-19, contact a Florida bankruptcy attorney to discuss your situation.

What Can’t the Automatic Stay Stop?

Unfortunately, some collection efforts won’t be affected by the automatic stay. For example:

  • IRS debt collection that doesn’t include issuing tax liens and seizing property or income
  • Court-ordered support actions, including alimony or childcare
  • Criminal proceedings, including fines and community service obligations
  • Loans from a pension

There are also limits regarding what the automatic stay can do if you’ve previously filed for bankruptcy within the last year. To learn more about how the automatic stay works if you’ve filed for bankruptcy more than once, check out this information from Nolo.com.

Is the Automatic Stay Permanent?

No. The automatic stay is a temporary measure that gives the court time to assess your debts. In some cases, the court grants a discharge of the debts. This means your legal obligation to repay the debt is eliminated, which is permanent.

In other bankruptcy cases, creditors can resume collections if they file a successful motion to lift the automatic stay. In most cases, these motions are related to mortgage debt, rent, or a lawsuit in another court. For the motion to be granted, the creditor must show they will lose money if the automatic stay remains in place and that the granting does not hurt other creditors.

Florida Bankruptcy Attorneys Help You Get a Handle on Your Financial Situation

If you’d like to know more about the benefits of the automatic stay and how it could help you deal with your financial issues, we can help. Contact the Law Office of Robert M. Geller at 813-254-5696 to schedule a free consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

How Do I Find a Bankruptcy Attorney in Clearwater?

If you're facing financial hardships and are considering bankruptcy in Clearwater, finding the right attorney can be a critical decision....
Read More

Should I Sell My Home to Get Out of Debt?

Debt is a common modern problem. Whether it's credit cards, student loans, or medical bills, debt can cripple even the...
Read More

What to Ask a Bankruptcy Lawyer

What should you ask a bankruptcy lawyer? Financial problems can be incredibly stressful. One option that many people turn to...
Read More

Is It Easy to File for Bankruptcy?

Bankruptcy is a legal process that allows individuals and businesses to eliminate or reorganize their debts. It offers relief to...
Read More

How to Stay Motivated to Pay Off Debt

If you are struggling with debt, you are not alone. The average American has tens of thousands of dollars in...
Read More

Can I Fire My Bankruptcy Attorney?

Filing for bankruptcy can be overwhelming. Your bankruptcy attorney plays a crucial role in navigating you through the process. Unfortunately,...
Read More

Am I Responsible for My Parent’s Credit Card Debt?

As we grow older, our parents also age. Sometimes they become dependent on us in many ways. Even if they...
Read More

How to Hide from Debt Collectors

There are many ways to “hide” from debt collectors. You can ignore their calls, not answer your door, or ask...
Read More

Is Your Spouse Responsible for Credit Card Debt in Florida?

Debt can be overwhelming, especially when you're not sure who is responsible for it. That's why it's important to understand...
Read More

What Happens If You Ignore a Debt Collector?

Debt can be overwhelming. It’s easy to let bills pile up and miss payments, and before you know it, you...
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

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