The most immediate benefit of any bankruptcy is the automatic stay issued by the court. Upon filing, any foreclosure proceedings are frozen and all creditors must cease collection activities. This includes contacting you, lawsuits, garnishing wages, seizing property or placing liens on property.
Take a Timeout from Creditors
When we submit your Chapter 7, Chapter 13 or Chapter 11 bankruptcy filing, all creditors listed in the paperwork are notified. If their attempts to retrieve payments continue, your lawyer can take legal steps to confront them.
Most often, the Bankruptcy Code immediately protects against:
- Wage garnishments
- Creditor harassment