Inspired Representation.
Elegant Legal Solutions.
Automatic Stay & Adversary Proceeding Protection Schedule a Free Consultation Today

Fort Lauderdale Automatic Stay & Adversary Proceeding Protection Lawyers

Lawyers Experienced in Bankruptcy Matters

Bankruptcy is both emotionally difficult and technically challenging for business owners and managers. It may be equally challenging for creditors that are concerned about repayment. When a business files for bankruptcy, an automatic stay goes into effect. An automatic stay stops creditors from taking certain kinds of actions. This means that creditors must obtain relief from automatic stay and adversary proceeding protection before proceeding with any effort to collect a debt. At Stok Kon + Braverman, our experienced attorneys have helped many debtors and creditors with issues related to the automatic stay and adversary proceeding protection.

Relief from Automatic Stay

When a bankruptcy petition is filed, an injunction automatically goes into effect, under Section 362 of the Bankruptcy Code. The stay prevents creditors from acting against the debtor or its assets, and it applies to all creditors, regardless of whether they have notice of the bankruptcy. The stay will be in effect until the case is dismissed, a discharge is entered, or the case is closed. It may not stay in effect if an order terminates, vacates, or modifies it.

Among the actions that are prohibited under an automatic stay governed by Section 362 are the filing or continuing of lawsuits against the debtor that is filing for bankruptcy, exercising set-off rights, and asserting rights against the property of the bankruptcy estate. The lawsuits may take the form of judicial, administrative, or appellate proceedings. The stay does not affect a lawsuit brought by the bankruptcy filer. It also does not extend to claims that arise after a bankruptcy case is already filed.

However, claims include any right to payment, regardless of the nature of that right or whether it has matured. Even sending a demand letter or trying to obtain possession of the bankruptcy estate's property is a prohibited action. There are certain exceptions to this general rule, such as for criminal proceedings or the collection of alimony.

Creditors will need to obtain relief from the court before taking certain actions, such as trying to collect the debt. The automatic stay allows a debtor a chance to reorganize and stops creditors from trying to get an unfair advantage over other creditors by trying to collect sooner.

A motion may be filed by a creditor to obtain relief from an automatic stay, which means that the creditor asks the court to make an exception and allow the creditor to take an action that would normally be prohibited. The motion will be supported by documents, and it must assert a valid perfected security interest, as well as any assertions that there is no adequate protection against collection. The debtor and the trustee who is overseeing the bankruptcy case must respond. Stay relief may be granted in various situations, such as when a debtor merely remains in possession of a piece of real property, but the lender has already completed a foreclosure sale.

Adversary Proceeding Protection

Sometimes, bankruptcy also involves adversary proceedings under Federal Rule of Bankruptcy Procedure (FRBP) Rule 7001. There are many different types of adversary proceedings, including those to recover money or property, determine the validity of a lien, obtain approval for the sale of an interest of the bankruptcy estate, object to a discharge, or determine the ability to discharge a debt. For most business owners filing for bankruptcy, an adversary proceeding is unfamiliar and stressful. Our firm is familiar with how to pursue and defend against these adversary proceedings.

Consult an Attorney

Bankruptcies may become complicated, particularly when many different creditors are involved. Whether you are a debtor filing for bankruptcy or a creditor, it is important that you obtain legal representation to make sure that a bankruptcy is handled correctly. The lawyers at Stok Kon + Braverman can provide you with experienced and knowledgeable counsel and representation in connection with relief from automatic stay and adversary proceeding protection. We serve businesses and creditors throughout Broward County.


Call us at (954) 874-8870 or complete our online form to
set up a consultation.


Real Clients. Real Reviews.

  • “I thought I was going to lose everything I've worked so hard for. Alan worked his magic and now I can't ask for anything more.”

    - John
  • “Alan is one of the most respected family law attorneys in South Florida. He handled a case for a close personal friend and did such a great job that I wanted to let the world know what a great man he is.”

    - Joe H.
  • “I had a specific problem during my first divorce. It was a total mess...until I was recommended to Alan Braverman. Here is a lawyer who will go the distance with you, protect you and he will make sure your divorce is fair and will fight for every legal rig”

    - Michael P.
  • “Very attentive and understanding. The process was quick and painless, and beneficial too! Would recommend him to anyone going through a divorce.”

    - Justine L.
  • “I have known Alan for several years and always found his office staff to be professional and responsive. Alan is highly credentialed and is one of just a few attorneys that is Florida Board Certified in Marital & Family Law in South Florida.”

    - Scott S.
  • Bankruptcy Bar Association: Southern District of Florida
  • The Florida Bar Board Certified - Marital & Family Law
  • Martindale Hubbell AV Preeminent Peer Rated
  • Expertise Best Real Estate Attorneys in Miami 2021
  • Super Lawyers Alan Braverman
  • Lawyers of Distinction
  • Super Lawyers

Contact Us Today

Schedule a Free Consultation
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.