The very first and the most immediate thing that happens when you file for bankruptcy is the stay order comes into effect. As such, if your home was going to be foreclosed or if you were going to be sued, Chapter 7 bankruptcy filing is going to put a stop to all of these. None of the creditors and the collection agencies can pursue you for collection or call you for the payments. Nobody can go on garnishing your wages or bank accounts, even if you were a defaulter and there was a judgment against you. Because bankruptcy is a legal proceeding, it is not only you but the creditors and lenders too who will be required to follow the laws with regard to bankruptcy.
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Can Bankruptcy Prevent Eviction?
A common question that is often asked is can bankruptcy prevent eviction?
Whether or not your landlord can evict you if you declare bankruptcy depends solely on your specific circumstances. As long as you’re not behind on your rent, and as long as you keep paying your rent, your landlord should never even have to know about your bankruptcy unless you chose to tell them. The truth is that your landlord cannot evict you simply because you filed for bankruptcy.
Can You Reclaim Your Repossessed Vehicle in Bankruptcy?
There has never been a more critical time of having a vehicle at your disposal than during the current economic downturn and rising unemployment in the Milwaukee area. Whether used for the purpose of commuting to work, job interviews, or other basic fiscal needs, it is necessary to have reliable personal transportation. This shouldn’t be an unreasonable goal, even if you’re considering filing for bankruptcy.
When you’ve experienced the bite of the poor economy in Wisconsin and you’re on the road to filing for bankruptcy in Milwaukee, the same economic issues that demand having your own personal vehicle could also mean you’ve already fallen behind on car payments and your precious vehicle is a prime target for repossession by creditors. Maybe your car was recently repossessed prior to filing for bankruptcy and you’re wondering if bankruptcy can help? Can the “automatic stay” which legally suspends a creditor’s ability to repossess most assets still be of value despite the fact that your vehicle has already been repossessed?