You can receive legal protection from efforts that would go against you, such as lawsuits, when you have filed for bankruptcy status. This article explains how you can be protected from a government entity, creditor or collection agency, with an automatic stay. A Dallas, Texas Chapter 7 law firm can help explain how this works and how it can affect your bankruptcy status.
A law firm that handles Chapter 7 and Chapter 13 cases can also assist you in other ways, such as your personal bankruptcy rate or working with creditors. To ease some of the confusion in this area of the law, a bankruptcy article made easily available can further help.
What is Stopped under an Automatic Stay in a Texas Chapter 7 Case
Under an automatic stay, a foreclosure on your house can be stopped. However, this is only temporary. In cases like this, it is usually easier to keep your house if you file Chapter 13 bankruptcy, as opposed to Chapter 7. At some point, however, the foreclosure proceedings may go forward.
If your wages are being garnished, an automatic stay can stop that. This will allow you the opportunity to finally bring home a full paycheck. Depending on your bankruptcy status you may also take care of the debt you owe, for which your wages were being garnished in the first place.
In some situations the automatic stay may be able to stop an eviction. However, if you file for bankruptcy after a judgment has already been issued against you by your landlord, this cannot be stopped. There may also be other ways that a landlord’s right to evict you is protected.
Otherwise, you may be given a few more days or weeks to buy some time. Eventually, though, the court will probably agree to lift the stay and proceed with the eviction against you.
If you were overpaid public benefits, the agency who issues them has a right to collect them through your paycheck. However, an automatic stay can prevent this. It won’t play any role, however, in any decisions made regarding termination or denial of your benefits.
What isn’t Stopped under an Automatic Stay in a Texas Chapter 7 Case
The automatic stay will not stop loans from a pension plan. Certain types, such as IRAs or job-related pensions, can still be repaid by withholding from your wages.
Certain tax proceedings cannot be stopped under an automatic stay including:
- audits;
- tax deficiency notices;
- tax assessments; and
- payment of assessments.
However, any attempt to seize your wages or property, or issuing a tax lien can be stopped in an automatic stay.
If a lawsuit is being sought against you regarding paternity, alimony or child support, this cannot be stopped by an automatic stay. Any attempt to establish, collect or modify these isn’t protected in through your bankruptcy status.
If there are any criminal proceedings against you and you are ordered to pay a fine, this cannot be stopped by an automatic stay. You will still have to pay restitution.
There may be other situations in which a creditor can ask for an automatic stay to be lifted and it may be granted. This will depend on a variety of factors, such as your personal bankruptcy rate. A Dallas, Texas Chapter 7 law firm can work with you regarding this.
The personal bankruptcy rate in the U.S. suggests that more Americans have turned to Chapter 7 and Chapter 13 bankruptcy since the economic crisis struck. Before you assume that this would be the best option for you, you should contact a Dallas, Texas Chapter 7 law firm. They can sit down with you and discuss your financial situation to determine what is best.
Contacting a Dallas Texas Chapter 7 Law Firm
At Warren & Migliaccio, our goal is to protect you and your family so that you can take the necessary steps to proactively plan for your future. When financial circumstances outside of your control threaten your wellbeing, take control of your situation by contacting our Dallas law firm. We’ll guide you through the legal process so you can make informed decisions and choose the best course of action. If a personalized, teamwork-driven approach sounds like what you need for your case, call 1-888-584-9614 today. We’re here to help.