Bankruptcy Term

What does Discharge of Debt Mean in Bankruptcy?

What does discharge of debt mean in bankruptcy? When the Sacramento Bankruptcy Court or Modesto Bankruptcy Court grants you a discharge, it means that your creditors cannot collect your debt from you personally.  Once you received a bankruptcy discharge, your creditors have to stop wage garnishment, bank levy, phone calls, threatening letters, lawsuits and other attempts …

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What does “Automatic Stay” mean in Bankruptcy?

What does “Automatic Stay” mean in bankruptcy? Upon filing of a Bankruptcy petition, creditors, including tax collectors, are prohibited from any attempts to collect from you because “Automatic Stay” is in effect. This means, creditor calls, repossession, foreclosure, lawsuit (with some exceptions), and other collection efforts must stop immediately. Automatic stay does not stop actions …

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