A voluntary Chapter 7 Bankruptcy case is commenced upon the filing of a petition with the bankruptcy court. A bankruptcy petition is a formal written request, bearing your signature, requesting relief from the bankruptcy court for relief.
Pursuant to Section 301 (b), “the commencement of case under this chapter constitutes an order for relief under Chapter 7 Bankruptcy. As soon as the petition for Chapter 7 Bankruptcy is filed, there is an immediate and automatic court order for relief granted. This order, called the Automatic Stay, triggers obligations upon both creditors and debtors.
If you have creditors pursuing you for payment and have overwhelming debt, the Chapter 7 bankruptcy constitutes an immediate order for relief. Stated in Section 362(a), that the filing of a petition under Section 301(a) of the Bankruptcy Code operates as a stay or an injunction against a host of creditor activities such as trying to collect a prepetition debt owed to creditor by the debtor.
Debtors do not have to go to court to seek an injunction, an injunction is immediately and automatically issued upon filing the bankruptcy petition with the court. The power of the “Stay” stops all collection actions from continuing. This “time-out” of collection actions allows time for the Chapter 7 trustee to orderly liquidate any of debtor’s non-exempt assets without a hectic rush among creditors attacking those assets with a few getting paid but most getting nothing.
When you feel the time is right for bankruptcy call Pikunis Law at (856) 282-5505