How Chapter 13 Bankruptcy Affects Your Debtors
To file for Chapter 13 you first have to petition the courts. But, even before the courts will accept your petition to file for chapter 13 bankruptcy, they will require you get debt management counseling and successfully complete a credit counseling program from a government approved agency. They will also determine if you’re eligible to file.
When you file the petition, the bankruptcy clerk will let all of your debtors know of your status. This will automatically stop most collection actions against you. They will receive notices of chapter 13 bankruptcy explained to them.
This means that your debtors can not initiate lawsuits against you, harass you dunning phone calls, garnish your paycheck, or attempt any other type of debt collection. When you file, the bankruptcy clerk will let all of your debtors know of your status.