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Phone: (856) 686-9910
Toll Free 888-857-8418

What is an automatic stay in bankruptcy?

 

A:

People file bankruptcy in New Jersey to get protection from creditors.  They need to halt a bank levy, wage execution, or foreclosure sale.  The automatic stay is the iron wall that comes down between you and your creditors and prevents them from doing anything to collect the debt outside of bankruptcy court.  It can really get you the breathing time you need to either discharge your debt or pay it over time.

However, the automatic stay does not stop everything.  Exceptions include:
  • A criminal action or proceeding
  • Family court actions to establish paternity, establish or modify alimony or child support, child visitation, or child custody.
  • Domestic violence actions
  • A family court action to dissolve a marriage (except for the equitable distribution of assets)
  • The collection of alimony or child support from property that is not property of a bankrupt estate (like wages in a chapter 7)
  • The interception of a tax refund
  • An audit to determine tax liability
  • An eviction from a commercial property where the lease has expired
This is not an exhaustive list, so if you have questions about whether an action by a particular creditor can be stopped by the automatic stay, please contact my office to discuss it further.  This feature of a bankruptcy can be very beneficial if creditors are hounding you. 




Have more questions about bankruptcy?  Get the answers to the most frequently asked questions by downloading my free book, Top Questions People Ask About Filing Bankruptcy in New Jersey.  It will give you the answers you need all in one place.  Then call me at 888-857-8418 or contact me through this site for an appointment for a free consultation to discuss your case.





The Law Office of Steven J. Richardson serves New Jersey, including:  Gloucester, Camden, Burlington, Salem, Cumberland and Atlantic Counties and surrounding New Jersey communities, including Woodbury, Colonial Manor, North Woodbury, Woodbury Heights, Deptford, Thorofare, Gloucester City, Washington Township, Blackwood, Brooklawn, Westville and Pitman.

Richardson Law Offices
40 Newton Avenue
Woodbury, NJ 08096
Phone: (856) 686-9910
Fax: (856) 686-9911