I. Mark Cohen Law Group, Personal Bankruptcy Filings NJ
At the time a personal bankruptcy is filed in New Jersey, federal law dictates that an automatic stay is put in place. The automatic stay protects you against all of your creditors attempting to collect on any outstanding debts that you owe. Once a personal bankruptcy is filed, your creditors can never call you, attempt to collect debt from you, or send you invoices, bills or file lawsuits against you to collect on debts included in your personal bankruptcy ever again.
The automatic stay stops any pending lawsuits or judgment collection efforts against you. If a New Jersey (or other state) court action was pending when a bankruptcy was filed, the suit must stop. If a judgment was entered against you, because of the bankruptcy filing, the judgment creditor cannot levy your personal bank accounts, garnish your wages, or put a lien against any real estate you own. Upon the successful conclusion of a personal bankruptcy, any personal judgments against you are discharged (forgiven).
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