If you do not know your rights, you could become a victim of creditors and their collection practices. There are solutions when you find yourself in financial difficulty. For many people, personal bankruptcy can be the answer. Bankruptcy is designed to allow you a fresh start. It can allow you to get your finances in order and put many of your problems behind you.
Bankruptcy is governed by federal law.
It is your right to take advantage of these laws. When you file a bankruptcy the court issues what is called an automatic stay. The automatic stay stops garnishments, repossessions, lawsuits, foreclosures, and other collection actions. This prevents your creditors from taking any type of collection action against you while the automatic stay is in effect. It is a violation of federal law for a creditor to continue efforts to collect a debt after receiving written notification of a debtor's filing bankruptcy.