The automatic say stops creditors from contacting you to collect on a debt. As soon as you file bankruptcy, the automatic stay goes into effect. Phone calls, letters, foreclosures, evictions, and garnishments are some of the actions that must stop.
Not Everything Stops
The stay does not stop all actions. Congress determined that some debts override the automatic stay. Legal proceedings regarding family situations that will continue are:
Current alimony and child support monetary determinations
Back alimony and child support collection
Child custody and visitation decisions
Modify alimony and child support payments
Protection for as spouse or child in domestic abuse cases
Reporting late support to credit bureaus
Intercepting tax refunds for support payments
Suspension or withholding licenses as leverage to collect child support
The IRS will continue to conduct audits, demand payments, or issue tax assessments.
If you are repaying a loan from a pension, the stay will not prevent withholding from your income for that loan.
You can also lose your automatic stay benefits if you had a previous bankruptcy within a year of your current case.
If you have questions about how the automatic stay will affect you, contact a Plano bankruptcy attorney to discuss how bankruptcy can benefit you.