In bankruptcy filing, whether it is Chapter 13 bankruptcy or Chapter 7 bankruptcy, the automatic stay is a special legal provision that immediately stops all creditors’ attempts to collect a debt during your case. The automatic stay can immediately stop a wage garnishment or prevent a new one from starting. However, the automatic stay will only stop legal action on debts that can be discharged in bankruptcy, and so excludes garnishment for debts such as child support.
The automatic stay stops garnishment or levies of wages or bank accounts, collection attempts through harassing phone calls or letters, starting or continuing any lawsuits, repossession of assets, and foreclosure on property.
In Chapter 13 bankruptcy or any bankruptcy, you will want to seek knowledgeable advice from a bankruptcy lawyer. The bankruptcy attorneys at the Frutkin Law Firm, PLC, in Phoenix, Arizona, have decades of experience in handling bankruptciy cases and can help you – especially in cases where an automatic stay is needed quickly.
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