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What is an Automatic Stay?

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The Automatic Stay, Chapter 7 and 13 Bankruptcy

The automatic stay goes into effect if you file either a chapter 7 or 13 Bankruptcy. The automatic stay temporarily stops creditors from collecting debts you owe. The stay will remain in place for a period of time unless the court removes the stay and allows creditors to continue with their collection efforts.

Automatic Stay Chapter 7 bankruptcy

In Florida, the automatic stay is a crucial component of Chapter 7 bankruptcy. It provides immediate relief to debtors by preventing creditors from pursuing collection actions, such as wage garnishment or repossession of assets. The automatic stay will normally remain in effect for the duration of the bankruptcy, which typically lasts around three months. However, it's important to note that there are exceptions to the automatic stay in certain situations, such as when dealing with domestic support obligations or multiple bankruptcy filings.

Consulting with a knowledgeable Chapter 7 bankruptcy attorney in Florida is essential to understand how the automatic stay can help protect you from your creditors and navigate any exceptions that may apply under state law.

Automatic Stay Chapter 13 bankruptcy

Chapter 13 bankruptcy in Florida provides debtors with a unique advantage regarding the automatic stay. Unlike Chapter 7, where the bankruptcy process typically concludes within a few months, a Chapter 13 case can last between three to five years. This extended duration of protection can be especially beneficial for debtors facing certain kinds of debts, such as mortgage arrears or tax obligations, where more time is needed for repayment and protection from creditors.

The automatic stay in Chapter 13 bankruptcy allows debtors in Florida to restructure their debts, create a manageable repayment plan, and regain financial stability over an extended period. This added flexibility can be a valuable tool when seeking relief from overwhelming debt and ensuring long-term financial stability under Florida law.

Debts that cannot be discharged in bankruptcy

  • Back child support:

    In Florida, back child support is a legal obligation, and it cannot be discharged in bankruptcy. Parents are required to fulfill their child support obligations even in financial difficulties.

  • Alimony:

    Alimony payments in Florida are determined based on various factors, and they are considered a legal obligation. Alimony cannot be discharged through bankruptcy in the state.

  • Certain Tax obligations:

    Specific tax obligations, such as certain federal tax debts, may be difficult to discharge in bankruptcy under Florida law. Consult with a bankruptcy lawyer for guidance on your tax debt.

If you have tax debt obligations, it is important you consult one of our bankruptcy lawyers to find the best solution and course of action. Student loans will not be dischargeable with bankruptcy unless you can demonstrate that repaying the debt would be an undue burden.

We understand these are rough time times and having a knowledgeable and affordable bankruptcy lawyer on your side is your best solution to becoming debt free and on the road to financial recovery.

Understanding the Automatic Stay in Bankruptcy

Watch the Video

Click the link above to watch the informative "Understanding the Automatic Stay in Bankruptcy" video on YouTube. For a free bankruptcy consultation, fill out our contact form or call us today!

Affordable Chapter 7 and 13 Bankruptcy services in Tampa, Florida - Contact Us at (813) 778-5411