Proceedings Not Affected by the Automatic Stay

Legal Matters that Won’t Be Suspended When You File for Bankruptcy

Proceedings Not Affected by the Automatic StayIf you’ve been considering filing for protection under the bankruptcy laws to help you deal with unmanageable debt, one of the factors that may have attracted you is the automatic stay that goes into effect immediately upon filing for bankruptcy. The automatic stay prevents your creditors from calling, writing or taking legal action to collect a debt, other than through the bankruptcy proceeding. While the automatic stay will suspend legal actions related to the debt, it won’t prevent all types of legal efforts.

Criminal Prosecutions Are Not Affected

As a general rule, a bankruptcy filing won’t prevent prosecutors from filing or going forward with criminal proceedings, even if the offense is a financial one, such as embezzlement. That’s because the criminal prosecution isn’t related to the debt—it’s a consequence of your violation of the law. There is one exception, though. A bankruptcy filing will temporarily prevent government officials from taking any action to recover overpaid governmental benefits or to recover the value of damaged government property.

Most Family Law Proceedings Will Not Be Suspended

Bankruptcy is not available to discharge or reorganize support payments of any kind. Accordingly, the automatic stay won’t have any impact on your obligation to pay support, and won’t prevent government officials from taking legal action to collect delinquent support payments.

Some Real Estate Proceedings May Be Outside the Scope of the Automatic Stay

The bankruptcy court has some discretion to lift the automatic stay in the interests of fairness. For example, if a real estate lender is at risk to lose a lot of money on a property if foreclosure proceedings are suspended, the court may lift the stay. Furthermore, if a landlord has started the eviction process, but the court has not entered the eviction order, the bankruptcy court may suspend the automatic stay to allow the eviction order to be entered.

Contact an Experienced Rockwall, TX Bankruptcy Attorney

At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. I am currently communicating with clients by phone, text messaging or videoconferencing. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.

Speak Your Mind


Call Rockwall bankruptcy lawyer Carrie Weir at 972-772-3083 or fill out the contact from below for a free, confidential consultation to discuss your options.

How Can I Help

Complete the contact form
and I will email you.

  • This field is for validation purposes and should be left unchanged.

Consumer Bankruptcy

Can I keep my car? Will bankruptcy stop a foreclosure? Will I ever be debt-free again? How will I ever pay these medical bills?

Read More

Chapter 7 Bankruptcy

If you want to stop creditor harassment, eliminate repossession debt, stop garnishments and keep your house, and car, a Chapter 7 bankruptcy could help.

Read More

Chapter 13 Bankruptcy

Are you in jeopardy of losing your house? Are you making good money but everyone is asking for payment right now? Do you want or need to stop collections?

Read More