The Brown Law Firm — Jerome A. Brown, Board Certified Attorney in Consumer Bankruptcy Law and Business Bankruptcy Law by the Texas Board of Legal Specialization — 40+ Years Legal Experience

Stopping Collection Action

Foreclosure & Collection Defense

Filing bankruptcy triggers the automatic stay under 11 U.S.C. § 362, a federal court order that stops most collection activity the moment your case is filed: foreclosure sales, vehicle repossessions, bank account levies, lawsuits, wage garnishments, and creditor calls. It doesn’t erase a lien already placed on your property, and eviction depends on timing, but for most people facing foreclosure or aggressive collection, it is immediate, real relief.

If you’re behind on your mortgage or vehicle payments and want to keep the property, Chapter 13 lets you catch up over a court-supervised repayment plan. If foreclosure or collection is the trigger but you don’t need a repayment plan to keep the property, Chapter 7 may be the faster path. Jerome will review your specific situation before recommending either.

What the automatic stay stops

  • Foreclosure sales. A scheduled foreclosure sale is stopped the moment you file, giving you time to catch up through a Chapter 13 plan or resolve the underlying debt.
  • Vehicle repossession. A scheduled repossession is stopped the same way, and Chapter 13 lets you catch up on missed payments while keeping the vehicle.
  • Wage garnishment. Garnishment for most debts must stop once you file and the creditor or your employer is notified. Garnishment for current child support or alimony is the exception and is not stopped by bankruptcy.
  • Lawsuits and bank levies. Filing halts most pending lawsuits and collection actions, including bank account levies, the moment your case is filed.

Keeping your home or vehicle

If you’re severely delinquent on a mortgage or vehicle payment and want to keep the property, Chapter 13 is usually the right tool: it lets you catch up on missed payments through the repayment plan while keeping your home or vehicle, rather than requiring the arrears paid all at once.

Texas also protects unlimited equity in your homestead, subject to acreage limits, and one vehicle per licensed driver in the household, whether you file Chapter 7 or Chapter 13. Jerome will go through your specific numbers with you before recommending a path.

Common questions

Can bankruptcy actually stop a foreclosure?

Mostly yes, through the automatic stay. The moment you file, a federal court order takes effect that stops most collection activity, including foreclosure sales, vehicle repossessions, bank account levies, lawsuits, and wage garnishments. It halts enforcement immediately, in most cases.

Will I lose my house if I file?

Usually no. If you're behind on your mortgage, Chapter 13 lets you catch up on missed payments through a court-supervised repayment plan while keeping your home. If you're current or only briefly behind, Chapter 7's automatic stay can also stop a scheduled foreclosure sale while your case is open.

Can I stop a vehicle repossession the same way?

Yes. The automatic stay stops a scheduled repossession the moment you file. Chapter 13 also lets you catch up on missed vehicle payments over time while keeping the car, the same way it works for a mortgage.

What if I've already been served with a lawsuit?

Contact us right away. Filing triggers the automatic stay, which halts most lawsuits and collection actions against you. The sooner we know, the sooner we can act, which matters most when a court date or deadline is close.

Does bankruptcy stop wage garnishment?

Yes, for most debts. Once you file and the creditor or your employer is notified, wage garnishment has to stop. One exception: garnishment for current child support or alimony is treated differently and is not stopped by bankruptcy.

Is there a limit to what the automatic stay can do?

A few honest caveats. A lien already placed on your property is not erased by the stay; the stay halts enforcement, and actually removing or reducing a lien is a separate step we handle when it applies. Eviction depends on timing: bankruptcy can stop an eviction if you file before your landlord obtains a judgment for possession, but once that judgment is in place the stay usually will not stop it, except in narrow circumstances.

Related reading

  • Chapter 13 Bankruptcy

    The repayment-plan path most often used to catch up on a mortgage or vehicle loan while keeping the property.

  • Chapter 7 Bankruptcy

    Often the faster path when a repayment plan isn't needed to keep the property.

  • Debt Settlement

    An alternative when bankruptcy isn't the right fit for your situation.

  • Guide: Stopping the Calls

    The full detail on what the automatic stay does and does not reach.

Facing foreclosure or aggressive collection?

Timing matters. Jerome A. Brown is Board Certified in both Consumer Bankruptcy Law and Business Bankruptcy Law by the Texas Board of Legal Specialization. He’ll review your situation and tell you honestly what will and won’t stop your specific foreclosure or collection action.

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Serving Victoria and the Austin metro.