Repossession and Foreclosure
Automatic Stay stops Foreclosure and Repossession
Immediately upon filing a bankruptcy case an automatic stay is imposed. This stay acts as an injunction against any type of collection by creditors. Chapter 7 and Chapter 13 Bankruptcy come with an “automatic stay” which can prevent creditor’s attempts to repossess your property. The stay is used to stop foreclosure sales and repossession of vehicles. The automatic stay also prevents creditors from engaging in collection activities, like intrusive calls and letters or garnishing bank accounts and wages.