When a debtor files bankruptcy, a powerful legal injunction known as the automatic stay goes into effect. It prevents creditors from taking action against you while it is in effect. If you have overwhelming debt that you cannot pay, I can file a bankruptcy in Arizona on your behalf.
The automatic stay can stop wage garnishment, vehicle repossession, home foreclosure, and creditor lawsuits such as collection actions on a credit card debt. The automatic stay will not stop a suit for child support or spousal maintenance.
Not only does the bankruptcy stop these actions, but it can also discharge all or most of your debt, depending on what kind of debt you owe. Generally, unsecured debt that is not incurred fraudulently and is not for a family support obligation is dischargeable, but there are many more exceptions.
However, do not be mislead about the automatic stay. While it will stop a home foreclosure or a vehicle repossession for the time being, it does not mean that you get to keep your home or vehicle without paying for it.
This is a general guide and there are many nuances to bankruptcy law. If you have questions about your own potential bankruptcy, schedule a free bankruptcy consultation with a bankruptcy lawyer.