06/02/2026
Most bankruptcy cases begin with a very specific legal effect that is often misunderstood. The moment a case is filed, federal law triggers an automatic stay. That stay pauses most collection activity, including creditor calls, wage garnishments in many cases, and enforcement actions while the court process is active.
Bankruptcy is not a personal judgment and it is not designed to define a personβs financial character. It is a structured legal process created to organize debt and bring resolution under court supervision.
Chapter 7 and Chapter 13 are the two primary forms of consumer bankruptcy. Each serves a different legal function based on income, assets, and financial obligations. The court determines eligibility based on financial facts.
In most situations, the first step is not deciding how to file. It is understanding how the law applies to the actual financial situation.
Learn more at eggertlaw.us
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