How Bankruptcy Court Stops Your Creditors
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What Happens When I File for Bankruptcy?
When you file for bankruptcy, your claim is filed with a bankruptcy court. This court will determine whether you are eligible to file, oversee the proceedings, and make a final decision on whether you can discharge your debts.
Once you enter bankruptcy, however, you have powerful protections against your creditors.
How Am I Protected from My Creditors When I File for Bankruptcy?
Once you file for bankruptcy, the bankruptcy court issues what is known as an automatic stay. This stay immediately keeps any of your creditors from taking any action against you or your property.
The automatic stay not only keeps the creditors and bill collectors at bay, but it also offers you other protections. Other protections include temporarily stopping any foreclosure proceedings against you, preventing any utility disconnections for at least 20 days, and stops your wages from being garnished, meaning money will no longer be taken from your paycheck before you receive it.
Do I Need an Attorney to File for Bankruptcy?
It is very important to a qualified bankruptcy attorney to represent you during this process. Bankruptcy law is very confusing and if you do not take the proper actions or submit the right paperwork, the judge may dismiss your case. Once that happens, the automatic stay is lifted, and you will no longer be protected from your creditors.
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Last Modified: 11-05-2013 12:00 PM PST
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