Are there any exceptions to the automatic stay issued when filing for bankruptcy?

Yes, there are exceptions to the automatic stay issued when filing for bankruptcy in Delaware. The automatic stay is an injunction issued by the court that temporarily stops certain collection activities such as wage garnishments, utility shut-offs, foreclosure proceedings, and repossession of property. However, the automatic stay does not apply to all creditors. For instance, the stay does not prevent the Delaware Department of Revenue from collecting unpaid state income taxes. The automatic stay also will not stop creditors from taking steps to collect alimony, child support, or collateral from a secured debt. The court can also modify or terminate the stay if a creditor can demonstrate that they will be hurt by the stay. A creditor may also be able to terminate the stay if the debt in question was incurred through fraud or is not dischargeable in bankruptcy. Lastly, some creditors have the ability to get what is known as a “lift stay” from the court. This allows them to take collection action against a debtor despite the automatic stay. In order to receive a lift stay, a creditor must demonstrate that they are entitled to the debt in question, the debt is not secured by property, and the debt does not provoke an unscheduled bankruptcy.

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Are there any exceptions to the automatic stay issued when filing for bankruptcy?

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