How does the filing of a Chapter 7 affect collection and other legal proceedings that have been filed against the debtor in other courts?
The filing of a Chapter 7 case automatically stays (stops) virtually all collection and other legal proceedings pending against the debtor. A few days after a Chapter 7 case is filed, the court mails a notice to all creditors ordering them to refrain from any further action against the debtor. If necessary, this notice may be served earlier by the debtor or the debtor’s attorney. Any creditor who intentionally violates the automatic stay may be held in contempt of court and may be liable to the debtor in damages. Criminal proceedings and actions to collect alimony, maintenance, or support from exempt property or property acquired by the debtor after the Chapter 7 case was filed are not affected by the automatic stay. The automatic stay also does not protect co-signers and guarantors of the debtor, and a creditor may continue to collect debts of the debtor from those persons after the debtor files a Chapter 7 case.
Related Questions
- How does the filing of a chapter 7 case by a person affect collection and other legal proceedings that have been filed against that person in other courts?
- How does the filing of a chapter 7 case affect collection and other legal proceedings that have been filed against the debtor in other courts?
- How does the filing of a Chapter 7 affect collection and other legal proceedings that have been filed against the debtor in other courts?
