• What To Do In Response To A Bankruptcy Petition
  • July 30, 2013 | Author: Robert G. Xides Jr.
  • Law Firm: Weisel, Xides & Foerster, LLP - Pittsburgh Office
  • The filing of a Petition in Bankruptcy operates as an automatic stay of all action against a debtor. This means that all lawsuits, executions, sheriff’s sales, repossessions, and all other legal actions against the party who files bankruptcy must immediately stop. Not only that, but the creditor must also refrain from “any act to collect, assess or recover a claim against the debtor...” Even contacting the debtor who has filed bankruptcy is in most cases illegal. See Section 362 (a) of the Federal Bankruptcy Code.