Whats the effect of filing a bankruptcy petition?
• The filing of a bankruptcy petition is a lot like filing a lawsuit in the sense that the act of filing simply starts a legal proceeding without any guarantees of the outcome. The debtor must go through a statutory process, with creditors and other third parties given the opportunity to challenge and object to the discharge or restructuring of the debts owed to them. Unlike any other type of legal proceeding, though, the filing of a bankruptcy petition immediately gives rise to an automatic stay. It stops creditors from taking any further action to try to collect their debts unless or until the bankruptcy court gives them poermission to do so. decides to the contrary. The stay is meant to give debtors temporary relief from their financial problems, giving them the opportunity to figure out how to deal with them. The automatic stay is only temporary, and there are any number of ways a creditor can get relief from the bankruptcy court to proceed with trying to collect its debt. One comm
