When your case is filed, the automatic stay protects you instantly, from collections and bill collectors.
When your bankruptcy case is filed
The automatic stay instantly stops lawsuits against you and nearly all actions against your property. This stops all creditors, collection agencies, and even a government entity. If you are at risk of being foreclosed on, or shut off of utility services the automatic stay provides Instant Relief.
One of the most important benefits of a bankruptcy is the instant relief you get the instant you file.
If you are being garnished, the creditors Instantly lose the ability to get money from your paycheck. If they do take anything from you after you file, they have to give it back to you. We have, on numerous occasions, filed bankruptcy cases the day before our client gets paid, and we get the money back.
Lawsuits come to an instant halt too! This includes foreclosures as well. We have stopped hundreds of foreclosure suits literally the day before the sale with bankruptcy cases.
This allows our clients to breath a big sigh of relief, and keep a roof over their heads.
Repossessions are not permitted after a bankruptcy is filed. You can stop hiding your car from the repo man and force the creditor to take your payments. Stop utility shutoffs, even if you are thousands of dollars behind on your utility bill.
All of this happens because the automatic stay instantly freezes collections of all types, and gives you some breathing room, to start your financial recovery.