The automatic stay is one of your most powerful tools when you file a bankruptcy. It’s the law that automatically goes into effect immediately when your bankruptcy case is filed, stopping all collection activity against you and all your property.

We are fortunate that Texas is one of the few states in the nation that generally doesn’t permit the garnishment of wages in consumer debt collection. But there still ARE major exceptions in which wage garnishment CAN happen

The filing of your bankruptcy case immediately stops your vehicle from being repossessed. That’s because a bankruptcy filing triggers one of the most powerful tools of bankruptcy – the automatic stay. That’s the law that goes into effect the instant your bankruptcy case is filed at court, and stays – which means stops – all collection activity against you and all of your property. So your Chapter 7 or Chapter 13 filing will force a creditor to immediately stop a repossession, even if that creditor has already sent out the repo tow truck.

In the most straightforward Chapter 7 cases, you qualify to file because your income is not too high, everything you own is “exempt” and protected, none of your debts have any collateral or else are current on them, and all your debts will be written off (“discharged”). Many cases fit this description. But what if your situation is not so straightforward?

These two options are very different. They each have their advantages and disadvantages. Sometimes it’s quite clear which one is better for you, but other times it’s more up in the air. Some of those advantages and disadvantages are often obvious. But there may be other important ones that you don’t know about. That’s why you should discuss both alternatives with your attorney with an open mind even if you think that one is the right one for you.