Divorce and Bankruptcy Stay of Proceedings

At the Orange County Law Office of David P Schwarz we are experienced Divorce lawyers who have successfully assisted in preventing assets being taken by bankruptcy creditors as a result of the automatic stay or proceedings. Please contact our office for a consultation at 949 735 9255 or via the web. We can also be reached by email at dpslaw66@gmail.com.

A Divorce lawyer will make sure as soon as a bankruptcy case is filed, an automatic stay immediately goes into effect and generally prevents creditors from taking most actions against property of the bankruptcy estate, the debtor, and the debtor's property. This stay continues until a bankruptcy court order lifting the stay has been entered or there has been a full discharge in bankruptcy court.

Not applicable to actions by debtor: The automatic stay does not apply to post-petition actions taken by the debtor.

The Divorce lawyer will advise you that no action needs to be taken as the stay arises automatically by operation of law upon filing of the bankruptcy petition. No court order is required to activate the stay.

Exceptions: In certain limited situations the automatic stay may not arise as to specific property or may not arise at all despite the filing of a bankruptcy case:

In a case filed by or against an individual debtor who had two or more bankruptcy cases pending within the previous year that were dismissed

At the Orange County Law Office of David P Schwarz we will inform our client that no notice to creditors is required for the automatic stay to take effect. The stay is in force upon filing of a petition even though a creditor may have received no notice of it.

Creditors having no notice of the stay may inadvertently violate it. Thus, the Code requires the bankruptcy court clerk to give written notice of the bankruptcy filing to all creditors listed in the schedules of creditors that the debtor filed as part of the bankruptcy petition.

To avoid problems with pesky creditors it is advised that the Divorce attorneys give notice of the bankruptcy filing and the stay to key creditors and, if known, to their counsel. Notice is particularly critical if a foreclosure, repossession, judgment execution or similar creditor action is imminent. Where the debtor has tax problems, also give notice to the IRS, Franchise Tax Board, State Board of Equalization and any other tax agency that may be about to levy on the debtor's assets.

Also telephone the key creditors and, if known, their counsel. Write down the number called, the name of the person spoken to, and the time, date and content of the message. If no person answers, leave a message on any answering device.

At the Orange County Law Office of David P Schwarz we are experienced divorce lawyers who can help you get an automatic stay to protect the taking of assets you have during a bankruptcy action. Please contact our office at 949 735 9366 or via the web. We can also be contacted by email at dpslaw66@gmail.com.

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