Are there any exceptions to the automatic stay issued when filing for bankruptcy?
When filing for bankruptcy in Florida, a court-issued order called an automatic stay is issued in order to protect the debtor from creditors. This order stops almost all collection activities, including any garnishment of wages, repossession of property, foreclosure on real estate, and other lawsuits. Although an automatic stay is usually issued when filing for bankruptcy, there are several exceptions. Creditors can ask the court to lift the order if the debtor owes them a substantial amount of money. Also, if the debt was incurred from an illegal activity, a crime, or from fraud, the court can lift the stay. In addition, if the debtor has filed for bankruptcy in the past, the creditor can request that the court lift the automatic stay. Creditors may also be able to take certain actions even if an automatic stay is in effect. These actions include collecting debts for alimony, child support, and domestic support obligations. The creditor can also sue the debtor to set aside fraudulent or preferential transfers of property. In some cases, the court may decide to lift the stay if the debtor is taking certain actions that harm the creditor. For example, if the debtor is using funds to buy luxury goods or taking out a loan on secured property, the creditor can request that the court lift the stay. This allows them to take action to protect their interests.
Related FAQs
What kind of debt relief is available to married couples filing for bankruptcy?What are the restrictions for filing for bankruptcy?
What is the process for filing for bankruptcy?
What are the requirements for filing for bankruptcy under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?
What will happen to my creditors if I file for bankruptcy?
Will filing for bankruptcy stop a lawsuit?
Does filing for bankruptcy stop foreclosure proceedings?
Are there restrictions on my ability to travel while filing for bankruptcy?
What are the advantages and disadvantages of filing for bankruptcy?
Which debts cannot be discharged in bankruptcy?
Related Blog Posts
What is Bankruptcy Law? - July 31, 2023What Are the Most Popular Types of Bankruptcy? - August 7, 2023
How to Choose the Right Bankruptcy Attorney for Your Case - August 14, 2023
Understand the Consequences of Not Filing for Bankruptcy - August 21, 2023
How to Avoid Bankruptcy With Financial Self-Management - August 28, 2023