Automatic Stay in Florida Bankruptcy
The automatic stay is a powerful federal injunction that takes effect the instant a bankruptcy petition is filed, halting virtually all creditor collection activity against the debtor and the debtor's property.
Scope of Protection
Under 11 U.S.C. Section 362, the automatic stay stops foreclosure proceedings, civil lawsuits, garnishment, repossession, and creditor contact. The stay is automatic; no court order is needed. It protects property of the bankruptcy estate and property of the debtor, giving the debtor breathing room to reorganize or liquidate in an orderly manner.
Relief from Stay
Creditors can petition the bankruptcy court for relief from stay under Section 362(d) by showing cause, lack of adequate protection, or that the debtor has no equity and the property is unnecessary for reorganization. Florida mortgage lenders routinely seek stay relief to resume foreclosure on properties where the debtor cannot maintain payments.
Related Terms
Barnes Walker Litigation
Barnes Walker handles creditor rights and automatic stay issues in Florida proceedings. Contact us for bankruptcy-related guidance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC