How does the filing of a chapter 7 case by a person affect collection and other legal proceedings that have been filed against that person in other courts?
The filing of a Chapter 7 case automatically suspends virtually all collection and other legal proceedings pending against a person. A few days after a Chapter 7 case is filed, the Court will mail a notice to all creditors ordering them to refrain from any further actions against the person. This court-ordered suspension of creditor activity is called the automatic stay. Any creditor who intentionally violates the automatic stay may be held in contempt of court and may be liable in damages to the person filing a bankruptcy case. Criminal proceedings and actions to collect domestic support obligations are not affected by the automatic stay. The automatic stay does not protect cosigners and guarantors of the person filing, and a creditor may continue to collect debts from cosigners and guarantors after the case is filed.
Related Questions
- How does the filing of a chapter 7 case by a person affect collection and other legal proceedings that have been filed against that person in other courts?
- How does the filing of a chapter 7 case affect collection and other legal proceedings that have been filed against the debtor in other courts?
- How does the filing of a Chapter 7 affect collection and other legal proceedings that have been filed against the debtor in other courts?
