One of the major benefits of filing for protection under Chapter 7 is that many creditor actions are stayed. This means that debt collection efforts and foreclosure is halted. Once a creditor or bill collector becomes aware that you have filed for bankruptcy protection, he/she must stop all efforts to collect the debt.

After your bankruptcy is filed, the court mails a notice to all the creditors listed in your schedules. This usually takes a couple of weeks. If this is not soon enough, then you should have your representative inform the creditors immediately. If a creditor continues to use collection tactics once informed of the bankruptcy they may be liable for court sanctions and attorney fees for this conduct. Your attorney deals with your creditors. It may be the only time you ever have the luxury of saying "you'll have to talk to my lawyer."

Note: This information deals with Chapter 7 consumer bankruptcy. Each state has its own bankruptcy laws, so you need to check with your state for details.

Alternatives to Bankruptcy	The Bankruptcy Process
Bankruptcy and Bills	Bankruptcy and Bill Collectors
Bankruptcy FAQs	Chapter 7 Bankruptcy
Avoiding Foreclosure	Your Personal Property