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

When an individual files for bankruptcy, an automatic stay is issued. This stay stops creditors from taking any action against the individual to collect debts. In Massachusetts, there are some exceptions to this automatic stay. First, the federal government can still collect certain taxes even with an automatic stay in place. Second, the stay does not stop a debtor from having to pay alimony or child support. Any court order that involves the payment of either of these must still be followed while the automatic stay is in place. Another exception is if a creditor has already put a lien on the individual’s property. In this case, the creditor has the right to proceed with the collection process. This is because a lien gives the creditor a legal claim to the property until the debt has been paid. The automatic stay also does not prevent creditors from taking action against a co-signer for debts related to the filing for bankruptcy. Finally, the automatic stay does not prevent a creditor from filing a motion to lift the stay and take further action against the debtor. The court must approve this motion. In summary, although an automatic stay is issued when an individual files for bankruptcy, there are several exceptions to this stay in Massachusetts. These include the federal government collecting certain taxes, having to pay alimony or child support, a creditor having a lien on property, creditors taking action against a co-signer, and a creditor filing a motion to lift the stay.

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

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