Upon filing of a bankruptcy case, automatic stay immediately comes into effect and stop creditors from taking action against debtor and debtor's properties.  This is a powerful tool if your goal is to stop a foreclosure, wage garnishment, IRS tax levy or lien, repossession, lawsuit, or creditors' harassment.

However, automatic stay does not stop all creditors from all collection action against debtor's properties.

Here are some common exceptions to the automatic stay on bankruptcy filing:

1.  Criminal Action against Debtor

2.  401k loan repayment withholding from wages.  This applies to other pension under section 403, 408, 408A, 414, 457 or 501(c) of the Internal Revenue Code.

3.  Certain Family Law Proceedings:  establishing paternity; dissolving marriage excluding property division; stopping domestic violence; establishing or modifying an order for payments for alimony or child support; and establishing or modifying visitation order.

For more information contact Muoi Chea Bankruptcy Attorney servicing Sacramento, Stockton, Fairfield, CA and surrounding cities in Northern and Central California.