What happens to a garnishment or a creditor’s lawsuit once I file bankruptcy?

Immediately upon the filing of the bankruptcy petition, all creditors must stop any collections against you. The Bankruptcy Court issues what is called an “automatic stay. ” This means that by order of the Bankruptcy Court all garnishments must cease and creditors may not take any further action on any lawsuit pending against you. The Bankruptcy also stops repossessions, foreclosures, harassing telephone calls and mail collections.