If I have filed for Chapter 7, can creditors still collect money owed through my bank account?

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If I have filed for Chapter 7, can creditors still collect money owed through my bank account?

Asked on January 18, 2013 under Bankruptcy Law, California

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

No, once a Chapter 7 is filed creditors cannot still attempt to garnish money owed that is in a bank account. In fact, all collection actions against a debtor must cease. This is due to something called the "automatic stay" which goes into effect once a bankruptcy is formally filed with the court. If a credotr violates the automatic stay they are subject to dismissal of their claim as well as other civil sanctions.


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