Stopping Creditors

The main reason to file for bankruptcy of bankruptcy is that your creditors are immediately stopped from taking any action against you to collect their debt.

Bankruptcy can stop your creditors from ruining your life. If your bankruptcy papers are filed with the court today, no creditor can take any action against you tomorrow. No more telephone calls at home and work, no more threatening letters, no more lawsuits, judgments, garnishees, bank account freezes, or any other creditor harassment.

Wouldn’t it be nice to be able to answer your phone again? Wouldn’t it be nice not to receive red letters? Wouldn’t it be nice to not worry about whether your car was going to be repossessed? Bankruptcy can help you make your life normal again.

If your bank account has been frozen, then filing your bankruptcy  will force the bank to release the funds to you. You must remember that if the funds have already been taken out of your bank account, then filing for bankruptcy will not get the money back for you, but it will reopen the account. You will be able to resume making direct deposits of your salary without fear the that it will be gone in the morning.

For garnishees the story is very similar. If a creditor has obtained a court order for garnishing you, then a bankruptcy filing will stop the garnishment. Any money that was garnished from your paycheck for the pay period that you filed in will be stopped, and those monies will be returned to you. Bankruptcy will not enable a debtor to recapture monies that were already garnished and given to the creditor.

Bankruptcy will not stop a garnishment for child support. If the debtor’s garnishment is for child support then it will continue even after your bankruptcy case is filed. Child support cannot be wiped out in a Chapter 7 bankruptcy, and the automatic stay provisions do not apply to wage garnishments for child support.

Articles

Chapter 7 - Getting a fresh start.

 Chapter 13

Tragic misconceptions about bankruptcy.

17 Debts that might not be discharged in your bankruptcy.

13 Rules you must know before filing bankruptcy.

 Stopping creditors

 Immediate relief after the bankruptcy petition has been filed.

Foreclosure of your mortgage.

 Life after bankruptcy.