Bankruptcy can stop foreclosure on your house or repossession of your car. In most cases, an "Automatic Stay" arises by law the instant a bankruptcy is filed. The "Automatic Stay" stops the foreclosure process and prevents collection actions, such as repossessions or garnishments. Bankruptcy may also allow you to consolidate your mortgage arrears or automobile balance and make payments on those debts over time. In Chapter 13, the attorneys at Diaz & Larsen, will design a repayment plan for you with your help.