The automatic stay and its exceptions

At Goldman & Beslow, we know that when you owe a significant amount of debt in New Jersey, you may start experiencing annoying behavior by creditors that sometimes reaches the level of harassment. Examples include calling you several times a day and making threats against you. As a last resort, creditors may even bring lawsuits against you. 

If you are looking for a way to put a stop to these activities and regain some peace and serenity, you might want to consider filing for bankruptcy. Once you file Chapter 13, most of your creditors will no longer be able to contact you. This is because, upon filing, an automatic stay goes into effect that puts a halt to collection activities such as lawsuits, wage garnishments, foreclosures and repossessions. 

However, there are some actions that an automatic stay cannot stop. For example, an automatic stay will not dismiss any criminal charges against you, nor will it discharge any punitive damages that a court orders you to pay. Because it pertains to the welfare of your children, efforts to collect back child support will continue despite an automatic stay. 

Personal injury litigation is a special case. Although creditors may ask permission to proceed with a personal injury case against you, they may not go after your personal assets, only your insurance. 

When you file for bankruptcy, be sure that you include all your creditors on the official list. Otherwise, any creditors that you omit will be able to continue collection actions against you. More information about Chapter 13 bankruptcy is available on our website. 

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