The Bankruptcy protection laws place an “Automatic Stay” in affect the moment your case is filed. The “Automatic Stay” prevents all non governmental, creditors from pursuing any collection efforts such as phone calls, garnishments, law suits, foreclosures and repossessions. This literally stops creditors in their tracks.

The Automatic Stay remains in affect throughout your bankruptcy case. It prevents creditors from enforcing a debt while your Bankruptcy case is pending. Once your Bankruptcy case concludes, your dischargeable debts are legally eliminated. Thus, eliminating the need for the automatic stay as there is no way for creditors to legally enforce the debts that were discharged.

For example, if your wages are being garnished because a bank got a judgment against you after suing you for a deficiency on a car they repossessed, the automatic stay makes it illegal for your wages to be garnished. Thus, your employer cannot legally withhold money from your paycheck while your Bankruptcy case is pending. Once you receive your discharge, the judgment is legally eliminated and the automatic stay goes away. The bank can no longer garnish your wages even though the automatic stay went away because, the judgment is no longer legally enforceable.