One of the biggest benefits of filing for bankruptcy is the automatic stay. This is an order the judge will make when you file that stops all collection activities.
The automatic stay is in place until the court discharges or dismisses your bankruptcy petition.
How it works
The automatic stay order will alert all creditors that they must stop all collection activities. This includes collecting routine and regular payments even if you are not behind on your account. Any creditor who has taken collection action must halt that as well. If you have current court cases against you for debts, these will also stop.
What to do
While you legally do not have to make further payments on any debts you owe, you should not stop paying all your bills. This is especially true for assets you wish to keep. While the creditors cannot do anything to you, including stopping access to services, while you are in the automatic stay, they can still continue to increase the debt you owe. This can complicate your bankruptcy case and might lead to further financial struggles after your case ends.
One exception is those debts you will discharge. Typically, you will stop paying these debts because bankruptcy will clear those. However, you should follow all legal advice you get for paying or not paying debts at this time.
After the stay
Once your case is complete or the court dismisses it, the stay lifts. Any debts not discharged through the bankruptcy become due again. Your creditors can still take collection actions or demand immediate payment of the amounts due.
