What Happens by Filing Bankruptcy?

Hello, this is Roger Ghai with the Law Offices of Roger Ghai, and I practice bankruptcy law throughout the Metro Atlanta area, Kennesaw, Acworth, Marietta, and the Atlanta area. And a lot of times, I get questions from clients who are thinking about filing and don’t know basic information as to what happens to lawsuits if they file a bankruptcy case and things of that nature, and whether they’re going to still get collection letters after they file the bankruptcy case. First of all, let’s say, for example, that you’ve got Chase Bank suing you on a credit card debt of 10 or 15, $20,000, whatever the number is. And let’s say that you go ahead, and you file a bankruptcy case. All creditors are prohibited from trying to collect from you after the bankruptcy case is filed. For example, let’s say you’ve… And if they do try to collect from you after you’ve already been filed for the bankruptcy, they can be sued.
Typically, what happens is we will go ahead and file a bankruptcy case for our client, and it will stop, let’s say, for example, the mortgage from being foreclosed on temporarily. It will stop a car repossession. It’ll stop any garnishment actions against you so that when you file, you have a sigh of relief, there’s sort of a wall of protection that goes up between you and the creditors, legally and formally speaking, that’s known as the injunction. It’s an 11 USC 362 A injunction. I’m sure that’s a little more knowledge than what you wanted to know. But, nonetheless, it’s a legal protection that goes up between you and your creditors. So, if you have any questions about whether certain creditors are going to still be able to try to collect from you after the bankruptcy or during the bankruptcy, please call my office at (770) 792-1000.