STOPPING CREDITORS

If your papers are filed with the bankruptcy court today, nobody can take any action against you tomorrow. No more telephone calls at home and work, no more threatening letters, no more lawsuits, judgments, garnishees, bank account freezes, or any other creditor harassment.

If your bank account has been frozen, filing your bankruptcy case with the court will force the bank to release the funds to you. You must remember that if the funds have already been taken out of your bank account then filing for bankruptcy will not get the money back for you, but will re-open the account. You will be able to resume direct deposit of your salary without fear that it will be gone in the morning.

For garnishees the story is very similar; if the creditor has taken money from your paycheck then filing for bankruptcy will stop them from taking any more - but it will not get back any money that’s already been taken. If your garnishee is for child support then that will continue after your bankruptcy case is filed because child support cannot be wiped out in a Chapter 7 bankruptcy.