How does filing bankruptcy immediately protect you?
The bankruptcy automatic stay goes into effect immediately upon the filing of a bankruptcy petition. It is one of the most powerful features of bankruptcy law and provides debtors with immediate relief from creditor collection efforts. When a bankruptcy case is filed, the automatic stay imposes a legal injunction that halts most types of collection activities by creditors. This means that creditors are prohibited from taking any further action to collect debts, including filing or continuing lawsuits, garnishing wages, repossessing property, or making harassing phone calls. The automatic stay is designed to provide debtors with a breathing space, allowing them to...
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