It temporarily stops most creditors from doing anything to try to collect their debts, meaning no more lawsuits, collection calls or threatening letters. It also stops any efforts to garnish wages. It happens automatically when either a Chapter 7 or Chapter 13 petition is filed.
Though it is in effect as soon as you file for bankruptcy, your creditors may not know about it immediately. The court will send out a notice to your creditors that you have filed. If, in the meantime, a creditor contacts you, tell them that you have filed for bankruptcy and to contact your attorney. You do not need to talk to them or answer their letters at this point and your attorney will probably advise you not to.
Will filing for bankruptcy keep my car from being repossessed or my beach house foreclosed upon?
In many cases, it can stop any repossessions, at least in the short-term, because the automatic stay prevents creditors from moving to recover the assets used to secure a loan.
Though it is in effect as soon as you file for bankruptcy, your creditors may not know about it immediately. The court will send out a notice to your creditors that you have filed. If, in the meantime, a creditor contacts you, tell them that you have filed for bankruptcy and to contact your attorney. You do not need to talk to them or answer their letters at this point and your attorney will probably advise you not to.
Will filing for bankruptcy keep my car from being repossessed or my beach house foreclosed upon?
In many cases, it can stop any repossessions, at least in the short-term, because the automatic stay prevents creditors from moving to recover the assets used to secure a loan.