How does Chapter 13 protect me? Could I still be sued or my wages garnished while the plan is in effect?
When you file the bankruptcy, there is what’s called an automatic stay, which stops all legal action against you and suing your property. The automatic stay acts like a preliminary injunction against the collection of a debt. So, if you are facing a wage garnishment, that wage garnishment will stop as of the filing of the bankruptcy. If you are facing debt collection activities, those debt collection activities will stop. We need to file a Chapter 13 and recover re-possessed vehicles. The person got their vehicle taken and they came to us, we file their bankruptcy and they actually got the vehicle back. They cannot foreclose, they cannot sue you. If they are suing you, they have to stop suing you.