The good news is that in many cases, filing for bankruptcy will immediately stop foreclosure, repossession, and credit collections.  This is the result of the “automatic stay” provision, which automatically stops all creditor actions as soon as a bankruptcy has been filed. 

The changes to the bankruptcy law enacted in 2005 limit this provision in the case of second and subsequent bankruptcy filings.  As a result, if you are filing a second chapter 13 bankruptcy case within one year of the dismissal of your first, the automatic stay will only be in effect for 30 days after the filing of the new case. 

If your home is about to be under foreclosure, a chapter 13 bankruptcy filing will stop this process.  Remember that in Atlanta foreclosures take place on the first Tuesday of each month.  If your foreclosure is quickly approaching, you will need to coordinate this timing with the timing of your Atlanta bankruptcy filing. 

A chapter 13 bankruptcy filing also may stop vehicle repossession.  You will be able to verbally notify any repossession agent of your bankruptcy filing and retain your vehicle.  If your vehicle has already been repossessed, you may still be able to recover it as a result of your chapter 13 bankruptcy filing. 

Again, if this is a second or subsequent bankruptcy case, your ability to recover any of your possessions that have already been repossessed is limited. 

The automatic stay created by your bankruptcy filing may also suspend any pending lawsuits which have been filed against you.  This is true regardless of whether you file a chapter 7 or chapter 13 bankruptcy.