The Automatic Stay in Miami Bankruptcy

What Is the Automatic Stay?

Under 11 U.S.C. section 362, the automatic stay is an injunction that immediately halts nearly all collection efforts against you the instant your bankruptcy petition is filed with the S.D. Fla.. It applies to all creditors, whether they know about the filing or not.

For Miami residents, this means that foreclosure proceedings, wage garnishment, vehicle repossession, debt collection lawsuits, harassing phone calls, bank levies, and utility shutoffs must stop immediately.

What the Automatic Stay Stops

Foreclosure

Judicial Only sales halted

Garnishment

Wage deductions stopped

Repossession

Vehicle seizure blocked

Lawsuits

Collection suits frozen

Foreclosure: Florida uses judicial only foreclosure. The automatic stay halts the process regardless of how far along it is.
Wage garnishment: Head of household fully exempt; otherwise 25% of disposable earnings. The automatic stay stops all garnishment that is in progress.
Vehicle repossession: Creditors cannot repossess your car after you file. If your car was recently repossessed, you may be able to recover it.
Collection lawsuits: All pending lawsuits for debt collection are stayed.
Phone calls and letters: Debt collectors must stop all contact immediately.
Bank levies: Creditors cannot freeze or seize your bank accounts.
Utility shutoffs: Utilities cannot disconnect service for 20 days after filing.

What the Automatic Stay Does NOT Stop

Child support and alimony: Domestic support obligations continue unaffected.
Criminal proceedings: The stay does not halt criminal cases.
Certain tax proceedings: Tax audits and tax court proceedings may continue.
Prior eviction judgments: If the landlord already obtained a judgment for possession, the eviction may proceed.
Pension loan repayment: Payroll deductions for retirement plan loans continue.

Stay Violations in the S.D. Fla.

If a creditor continues collection activity after you file bankruptcy, they are violating the automatic stay. Under 11 U.S.C. section 362(k), you may be entitled to:

Actual damages -- any financial harm caused by the violation
Attorney fees and costs -- the cost of enforcing the stay
Punitive damages -- in cases of willful violation

Document every violation carefully: save voicemails, letters, garnishment notices, and any evidence of continued collection.

Repeat Filers: Limited Stay Protection

One dismissal in the past year: The stay lasts only 30 days unless you file a motion to extend it and show good faith (section 362(c)(3)).
Two or more dismissals in the past year: The stay does not go into effect at all unless you file a motion to impose it (section 362(c)(4)).

If you are a repeat filer, timing your petition and filing the appropriate motions immediately is critical.

Frequently Asked Questions

What is the automatic stay in bankruptcy?

The automatic stay is a federal court order under 11 U.S.C. section 362 that takes effect the instant you file bankruptcy in the S.D. Fla.. It immediately stops most collection actions including wage garnishment, foreclosure proceedings, repossession attempts, lawsuits, harassing phone calls, and utility shutoffs.

What does the automatic stay stop?

The automatic stay stops: wage garnishment, foreclosure sales, vehicle repossession, debt collection lawsuits, creditor phone calls and letters, bank account levies, utility disconnection (for 20 days), eviction (in some cases), and IRS collection activity.

What does the automatic stay NOT stop?

The automatic stay does not stop: child support and alimony collection (domestic support obligations), most criminal proceedings, certain tax audit proceedings, and evictions where the landlord already had a judgment for possession before filing.

What happens if a creditor violates the automatic stay in Miami?

If a creditor violates the automatic stay, you may be entitled to actual damages, attorney fees, and in some cases punitive damages under 11 U.S.C. section 362(k). Document the violation and notify your attorney immediately. The S.D. Fla. takes stay violations seriously.

Does the automatic stay apply if I filed bankruptcy before?

If you had a bankruptcy case dismissed within the past year, the automatic stay in your new case lasts only 30 days unless the court extends it. Two or more dismissals in the past year means no stay at all unless the court orders it under section 362(c)(3) and (c)(4).

How long does the automatic stay last?

In Chapter 7, the stay lasts until your case is closed, dismissed, or discharge is granted (typically 3-4 months). In Chapter 13, it lasts for the duration of your 3-5 year plan. Creditors can file a motion for relief from stay.