| When you fail to pay your debts when they are due you will likely be faced with a lawsuit by the creditor to recover the debt, attorney’s fees, and court costs. In most cases, the creditor will win the suit and be entitled to garnish your wages or take any money you have in your checking and savings accounts. A Chapter 7 bankruptcy filing will stop any lawsuit against you for unsecured debts immediately upon the filing of the bankruptcy petition. One very powerful provision of the bankruptcy code is called a “Stay.” A Stay operates to prohibit any creditor from continuing its collection activities against you including lawsuits, harassing phone calls, collection letters, wage garnishment, bank account executions, etc. When you are faced with a lawsuit by an unsecured creditor, a Chapter 7 bankruptcy filing is your best defense if you can’t afford to pay the debt. |
