What is the bankruptcy automatic stay?

The bankruptcy automatic stay is a court order issued by the court when a person files for bankruptcy. The automatic stay prevents creditors from collecting debts owed to them from the debtor. This means that collection calls, lawsuits, wage garnishments, and repossessions are all prohibited. It also prevents creditors from foreclosing on any property owned by the debtor. The automatic stay is in effect until the debtor’s bankruptcy case is resolved. In Florida, bankruptcy law requires that all creditors receive notice of the debtor’s bankruptcy filing and that creditors abide by the stipulations of the automatic stay. If the stay is violated, creditors may be liable for damages caused to the debtor. It is important to note that not all creditors are required to abide by the automatic stay. Creditors who are involved in child support cases are not subject to the automatic stay and may continue to seek payment from the debtor. In addition, creditors can also file a motion with the court to have the automatic stay lifted or modified, which allows them to collect any debts owed to them. The court may lift the stay if it believes that the granting of such would not be detrimental to the debtor. The bankruptcy automatic stay serves as a protection for debtors. It gives debtors the chance to organize their finances while their bankruptcy case is pending. It also allows debtors to determine which assets they can keep and which debts they can discharge before they have to start making payments.

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What is the bankruptcy automatic stay?

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