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Bankruptcy stops creditors with the automatic stay

The automatic stay is a very important part of bankruptcy protection that takes effect when your case is filed with the South Carolina Bankruptcy Court.

The automatic stay stops all collection action.

“The automatic stay is one of the fundamental debtor protections provided by the bankruptcy laws. It gives the debtor a breathing spell from his creditors. It stops all collection efforts, all harassment, and all foreclosure actions. It permits the debtor to attempt a repayment or reorganization plan, or simply to be relieved of the financial pressures that drove him into bankruptcy.” Bankruptcy Code Legislative History

In Chapter 13 there is also a limited co-debtor stay that protects your someone who co-signed a debt with you. If you value a loan in Chapter 13, your co-debtor may continue to be liable.