Individuals who file for bankruptcy relief get to breathe again.  Foreclosure, lawsuits, calls from creditors, garnishments and any other collection activity against the individual will end or be “stayed”.  Harassment ends and creditors may no longer contact the individual who has filed for bankruptcy.  Upon filing a bankruptcy case, the bankruptcy court imposes what is called an “automatic stay” which prohibits creditors from taking any further action against the debtor without express permission of the bankruptcy court.  The stay is automatic and creditors that violate it may be sanctioned by the bankruptcy court.  

At the time of filing a Chapter 7 or Chapter 13 bankruptcy, the individual will be appointed a “trustee” that will administer the bankruptcy estate.  The “bankruptcy estate” is all the property that an individual owns at the time of filing.  The trustee will require that individuals provide documentation of their financial situation to prove the accuracy of their statements regarding their financial affairs.