It Doesn’t Stop Everything: Exceptions to the Automatic Stay
Denver Bankruptcy Lawyer Wink & Wink Can Help You Determine If You May Have Exceptions
The automatic stay is one of the great reliefs – other than the financial one, of course – that occurs during a bankruptcy case.
In short, the automatic stay stops creditors from trying to collect payments on your debts after you file bankruptcy.
If you’re dealing with overwhelming debt, you’re probably also dealing with angry creditors and collection agencies who are calling you non-stop or sending harassing letters. There may also be threats of lawsuits or repossession of your car or other scary possibilities.
So the automatic stay can feel like a much-needed benefit in a time of financial hardship.
And you don’t have to wait until your bankruptcy case is complete to get the benefits of the automatic stay. Nope. The automatic stay goes into effect once you file for bankruptcy.
If you’re facing financial hardship and can’t see a sensible way out, it’s time to speak with a bankruptcy attorney, such as Wink & Wink of Denver, Colorado. They’ll review your case and help you decide if filing for bankruptcy is right for you. They can also help you learn what to expect once the automatic stay goes into effect.
What Does the Automatic Stop From Happening?
The automatic stay has many benefits. These include stopping creditors and collection agencies from:
- Trying to collect on the money you owe them.
- Contacting you about that money.
- Repossessing your assets.
- Disconnecting utilities for at least 20 days.
- Starting or continuing a lawsuit to collect a debt.
- Starting or continuing a foreclosure or eviction that’s not due to a judgment (more on that below).
- Engaging in wage garnishment.
This helps you get a breather from the pressure of making payments and dealing with harassing creditors while you begin getting your financial life back on track during your bankruptcy case.
If creditors and collection agencies try to ignore the automatic stay – e.g., still call you demanding payment – then they can be held in contempt of court.
When you’re in need of debt relief, it’s time to speak with a bankruptcy lawyer as soon as possible before things get even worse. The lawyers at Wink & Wink have countless years of experience helping hundreds of clients get financial relief when they need it.
However, it’s important to note that the automatic stay does have some exceptions.
Exceptions to the Automatic Stay
Certain financial obligations will still be required after filing for bankruptcy. These won’t be put on pause.
- Child support, child custody, or praternity.
- Alimony or spousal support.
- Restitution or fines ordered by a court from a criminal proceeding.
- Taxes and audits.
- Paying back loans from job-related pensions.
- Some eviction proceedings. If your landlord has received a judgment of possession based on your illegal use of controlled substances or your endangerment of the property, then your landlord will still be able to evict you. In other words, if the eviction is occuring for reasons beyond you’re just behind on rent payments.
This is why it’s important for your bankruptcy attorney to get a full picture of your financial situation. That way they can assess what financial obligations you must still have during your bankruptcy case.
Can the Automatic Stay Be Stopped?
Naturally, creditors and collection agencies want to get paid, so things like the automatic stay are a big frustration.
Creditors can file a motion to lift the automatic stay – in other words, end it – so they can continue to try to collect payments or proceed with eviction or repossession.
Mortgage and car lenders are the most common creditors to file a motion for relief from the automatic stay.
A bankruptcy judge will determine whether to grant the lift or not typically about one month after the creditor has filed the motion.
This is another area where a great bankruptcy attorney can be a huge asset, as they can help you with your options and your defense if an attempt to get relief from the automatic stay should occur.
Learn How the Automatic Stay Will Affect Your Case from a Denver Bankruptcy Attorney
For people dealing with overwhelming debt and no smart way to get out on their own, it’s time to speak with skilled Denver bankruptcy attorneys Wink & Wink. They’ll review your case and help you understand the right choice for your specific situation. They’ll also help you learn how the automatic stay will occur during your case and what exceptions to be prepared for. Plus, the initial consultation is completely free. Contact us online today or call Wink & Wink at 303-410-1720.