{"id":916,"date":"2019-12-26T09:04:08","date_gmt":"2019-12-26T09:04:08","guid":{"rendered":"https:\/\/www.karinalucidlaw.com\/?p=916"},"modified":"2023-09-26T10:00:08","modified_gmt":"2023-09-26T10:00:08","slug":"automatic-stay-in-new-jersey-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.karinalucidlaw.com\/automatic-stay-in-new-jersey-bankruptcy\/","title":{"rendered":"Automatic Stay in New Jersey Bankruptcy"},"content":{"rendered":"

Debtors get protection from persistent debt collection efforts when they file for bankruptcy under Chapters 7, 11, or 13. These types of bankruptcy trigger \u201cautomatic stay\u201d, an injunction that halts all debt collection activities<\/a>. With an automatic stay in place, creditors and collection agencies must immediately stop all collection efforts. When you file for bankruptcy, you are spared from the harassment of further phone calls and correspondence. You are also spared from collection lawsuits. or the threat of them, wage garnishment, and lien filings.<\/p>\n

Many people file for bankruptcy mainly to trigger the automatic stay. A debtor could certainly use anxiety relief as well as the chance to fix his or her financial affairs. It helps without the pressure from persistent debt collectors. More than that, however, the bankruptcy process offers a fresh start by discharging the filer\u2019s debts.<\/p>\n

What Can the Automatic Stay Do for You?<\/h3>\n

Being in debt could cause you foreclosure, basic services disconnection, loss of employment because wage garnishments, and other unpleasant consequences. The automatic stay allows you to hold off the disconnection of utilities and other services for 20 days; stop your pay from being garnished unless it\u2019s for child support, alimony, or another high priority debt; as well as temporarily prevent foreclosure and eviction.<\/p>\n

\"AutomaticYou should realize, however, that there are instances wherein the stay won\u2019t stop an eviction, such as in cases wherein the landlord has already secured judgment of possession or there are claims against the tenant of endangering the property or using controlled substances.<\/p>\n

When it comes to foreclosure, you have to be strategic about which bankruptcy chapter to file under. Both Chapters 7 and 13 trigger the automatic stay. You might find, however, that the Chapter 13 automatic stay is more beneficial than that of Chapter 7<\/a>. Chapter 13 bankruptcies offer debtors more tools to keep their homes. If you file under Chapter 7, however, your creditor may still continue with the foreclosure. You need to agree on a debt repayment plan or some other official debt settlement arrangement.<\/p>\n

Proceedings Where the Automatic Stay Doesn\u2019t Apply<\/h3>\n

Filing for bankruptcy doesn\u2019t always offer a complete blanket of protection. The automatic stay clearly has its limitations. It just doesn\u2019t apply in cases with certain non-dischargeable debts. What are the proceedings and actions that remain unaffected by an automatic stay? Here are some examples:<\/p>\n