Exceptions to the Automatic Stay


Once you and your bankruptcy attorney file a bankruptcy petition, the automatic stay will go into effect. This automatic stay prevents your creditors from continuing to collect, or trying to collect, money from you. This isn't a permanent injunction; it's just a temporary stay until your bankruptcy case is completed. It's always a huge relief for people who have been feeling the stress of bills they cannot afford to pay. But not every bill you owe will fall under the automatic stay.

  • Criminal prosecutions will continue so if you've committed a crime a bankruptcy isn't your way out.
  • Evictions will continue if you file bankruptcy.
  • If you took money out of a retirement plan you'll still have to repay it. On a side note you should never, ever, ever take money out of your retirement plan before filing bankruptcy.
  • All of your support payments to ex-spouses and children are still mandatory, even when you file bankruptcy, although you may be able to petition your support court to reduce the monthly amount you owe.

Every bankruptcy is different (like snowflakes). Therefore, there are always some exceptions to the rules that may crop up. There are also some ways to deal with debts that are not bound by the automatic stay and there may be more exceptions than the ones we have listed above. When you file for bankruptcy it's important that you understand what debts you'll no longer have to pay and which ones you'll still be responsible for. You must have this information so you can formulate a clear picture of what you are facing. This is where an experienced Chicago bankruptcy attorney becomes an essential tool in the bankruptcy process.