Urgent problems

Garnishments, lawsuits, frozen accounts, foreclosure, repossession, and how fast bankruptcy can stop them.

Can bankruptcy stop a wage garnishment?Yes, in almost every case. Filing bankruptcy triggers an automatic stay that requires most creditors to stop garnishing immediately, and it usually takes effect within one or two pay periods.
I just got served with a debt collection lawsuit. What now?Don't ignore it; that's the only losing move. Most collection suits end in default judgments because nobody answers, and a judgment unlocks garnishment and bank levies. You typically have around three weeks to respond. Your realistic options: answer and make them prove it, negotiate, or, if this suit is one symptom of a bigger problem, file bankruptcy, which stops the case instantly.
My bank account was frozen or levied. What can I do?Act the same day if you can. Find out who levied and under what authority, because your protections depend on it. Some money is protected no matter what: Social Security and similar federal benefits, and state-exempt wages. Claiming those protections can free part or all of the account. Filing bankruptcy stops further levies immediately and can sometimes claw back what was just taken.
Can bankruptcy stop a repossession, or get my car back?Yes to stopping one: the moment you file, the automatic stay bars the repo man. And if the car was just taken but not yet auctioned, filing quickly, especially a Chapter 13 that provides for the loan, can often force the lender to return it. After the auction it's too late, so this is measured in days.
Can bankruptcy stop a foreclosure?Yes. Filing bankruptcy stops a foreclosure sale immediately, even the day before it is scheduled. Whether you keep the house afterward depends on the chapter: Chapter 13 lets you catch up on missed payments over three to five years, while Chapter 7 usually only delays the sale.
The automatic stay: bankruptcy's pause button, explainedThe moment any bankruptcy is filed, a federal injunction called the automatic stay snaps into place: garnishments, foreclosures, repossessions, lawsuits, levies, utility shutoffs, and collection calls must stop, immediately, without a judge signing anything. It's the reason bankruptcy can rescue emergencies. It has exceptions (mostly family support and criminal matters) and it can be shortened for repeat filers, but while it holds, it holds against everyone.

Urgent problems

The GoBK newsletter, in your inbox.