One of the main advantages to filing bankruptcy is obtaining the benefit of the automatic stay.
Under 11 U.S.C. § 362, this protection arises as soon as a bankruptcy Petition is filed. It stops all creditor collection activities, garnishments, levies and foreclosures. This means that a creditor is stopped from suing you, foreclosing on your property, and removing funds from your bank account to satisfy a Judgment.
EXCEPTIONS TO THE AUTOMATIC STAY
- Motions for Relief from Stay
- Motions for In rem relief
- Time limits imposed on the automatic stay because of prior bankruptcy filings