CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

How Do You Benefit from the Automatic Stay?

Relief From Automatic Stay.Bankruptcy offers a variety of benefits. One of the most important is the automatic stay.

Bankruptcy’s automatic stay stops bill collectors from pursuing you. It stops all collection efforts, including those related to your home mortgage. The automatic stay continues throughout the entirety of your bankruptcy, so once you file, you will no longer be the subject of collection efforts.

The calls stop. The text messages and emails stop. Efforts to seize your property and garnish your wages – it all stops.

The automatic stay is one of the primary reasons people file for bankruptcy. It provides relief from what is likely the greatest financial stress you’ve experienced in your life. It offers wide-reaching protection from creditors and ensures you can get a handle on your situation and improve your finances without bill collectors breathing down your neck.

This relief is not only an emotional boost, it also gives you the time needed to deal with your financial issues.

Will the Automatic Stay Stop All Collection Efforts?

Yes, the automatic stay prevents creditors from taking any collection efforts against you, at least temporarily.

Filing for bankruptcy means creditors can no longer:

  • Call you
  • Initiate new lawsuits against you
  • Continue lawsuits already in progress
  • Continue court proceedings already in progress regarding seizure or repossession of property
  • Garnish wages
  • Issue tax levies

The automatic stay occurs in both Chapter 7 and Chapter 13 bankruptcy filings. It is intended to provide time to liquidate assets in Chapter 7 and time to create a repayment plan in Chapter 13.

How Long Does the Automatic Stay Last?

The length of the automatic stay depends on the chapter bankruptcy and the decision of the court.

In Chapter 13, the automatic stay remains in place until the end of the repayment plan. In Chapter 7, it’s in place until the discharge. So the debt or debt affected by the automatic stay will either be discharged and you’ll no longer be responsible for paying that debt, or it will not be discharged and the creditor can begin collection efforts again.

The only exceptions to the protections of the automatic stay in bankruptcy are some tax debts, criminal court case fines, and any money owed related to a family support order – all things debts that are unlikely to be discharged in bankruptcy anyway.

For more information about debts that aren’t dischargeable in bankruptcy, check out this information from NOLO.com.

If your bankruptcy case is dismissed, the automatic stay and the protection it provides is no longer valid. Avoiding a revocation of the automatic stay is yet another reason to work with an experienced attorney when filing for bankruptcy.

To learn more about how the automatic stay can help you if you are struggling financially, or if you’d like to discuss the benefits of filing for bankruptcy with an experienced professional, we can help. Contact the Law Office of Robert M. Geller at 813.254.5696 to schedule a no-obligation consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

5 Common Budgeting Mistakes Newlyweds Make and How to Avoid Them

Budgeting mistakes are common, especially when you’re young. Not all newlyweds are young adults, but many first-time marriages do involve...
Read More

When Should Married Couples File for Bankruptcy Together?

There's no easy answer to the question of timing when it comes to bankruptcy. In some cases, it may make...
Read More

Can Your Spouses Debt Force You Into Bankruptcy?

If you're married and your spouse has a lot of debt, you may be wondering if that debt can force...
Read More

Do You Need a Bankruptcy Attorney If You’re Divorcing with Financial Problems?

Divorce and bankruptcies are more common than many people realize. Financial problems make a stressful transition even more difficult. If...
Read More

Can You File Bankruptcy without Your Spouse?

Filing for bankruptcy is a decision that should not be taken lightly. It can affect your financial life and the...
Read More

How Seniors Can Avoid Bankruptcy

Seniors are at a high risk of bankruptcy, but there are ways to avoid it. What do you need to...
Read More

What Happens If I Own Too Many Assets to File for Chapter 7?

Does hiding assets in bankruptcy protect them from your creditors? If you own too many assets to qualify for Chapter...
Read More

How to Find the Best Lawyer for Filing for Bankruptcy after Retirement

Many retirees decide to file for bankruptcy as a way to get a fresh start. But finding the right lawyer...
Read More

Does Declaring Bankruptcy Affect My Retirement Savings?

When you're struggling with debt, the thought of bankruptcy might cross your mind. But what would that mean for your...
Read More

Is a Reverse Mortgage Right for Me?

Reverse mortgages in Florida are loans that allow homeowners 62 and older to borrow against the equity in their homes....
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 avvo1 avvo2 avvo3 LEA BBB Logo

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