Your Rights in Bankruptcy

Once your Chapter 7 or 13 Bankruptcy petition is filed with the court, you are provided with the following rights:

Automatic Stay

Once you have filed for bankruptcy, the court will grant you an automatic stay. This is an injunction that prohibits creditors from contacting you or taking any further action against you to collect a debt.

Prevents Wage Garnishment and Bank Account Freeze

Filing for bankruptcy can stop creditors from garnishing your wages and freezing your bank account(s).

Protect Exempt Assets

Under Chapter 7 bankruptcy, you are able to keep all of your exempt assets. Under Chapter 13, you can potentially keep your non-exempt assets as well, upon completion of the court-approved payment plan.

Halt Foreclosure and Repossession

Once you have filed for bankruptcy, foreclosure proceedings and possible repossession of your property by your creditors are halted by process of law.