When you file for either Chapter 7 or 13 bankruptcy, an "automatic stay" comes immediately into force that prevents a number of significant actions creditors might otherwise take against you.
An automatic stay can't accomplish everything, but it can prevent a home foreclosure, eviction, wage garnishment, bank levy, and continued collection calls. Thus, filing for bankruptcy before such actions are taken by your creditors can be very important.
Please note that an automatic stay won't affect tax collection issues, stop criminal charges over financial matters from going forward, or affect child support in a divorce case. And the court can grant a relief from the automatic stay if creditors file for one.
But most people benefit greatly from the automatic stay rule, and if you're going to file for bankruptcy, it's best not to wait too late, before such a stay would save your home, car, or life savings. At San Diego Bankruptcy Attorney, we can help you wade through these issues and show you how an automatic stay would help you.
