Bankruptcy's Automatic StayWhen a person files for bankruptcy, they usually receive immediate protection from creditors through a special court order known as the bankruptcy automatic stay.
This means creditors must stop collection efforts.
The Stay is Designed to STOP Debt CollectorsThe automatic stay in bankruptcy was designed to:
- HALT foreclosure
- STOP repossession
- SILENCE creditors
- STOP many lawsuits & wage garnishments