Bankruptcy Attorney in Lee's Summit, Missouri
Regardless of whether you file under Chapter 7 or Chapter 13
There Are Certain Protections That Are Automatically Triggered As Soon As Your Case Is Filed:
Creditors can no longer contact you in an attempt to collect debts.
Creditors cannot repossess your vehicle if you are behind in payments.
Creditors cannot begin foreclosure proceedings on your property if you are behind on mortgage payments. If the foreclosure process has already started, it must immediately stop while your case is pending.
Creditors cannot file lawsuits against you for money owed. If a lawsuit is currently pending against you, it must immediately stop while your case is pending.
Creditors cannot garnish any wages from your paychecks once your case is filed. If they have already started garnishments when you file, they must immediately file a release of garnishment with the court and provide a copy to your employer, which lets the employer know to stop taking money from your paychecks.
If creditors violate any of these rules they are violating what is called the “Automatic Stay” and they can face serious consequences from the Bankruptcy Court if it can be proven that they knew about the bankruptcy and willfully violated the automatic stay provisions of the bankruptcy code.
Click on the links below to learn about the differences between Chapter 7 and Chapter 13 Bankruptcy, as well as some frequently asked questions about the bankruptcy process.