One of the most important features of federal bankruptcy law is the automatic stay. When a consumer or business files a petition for bankruptcy relief in U.S. Bankruptcy Court, the petition effectively freezes most collection efforts against the debtor who filed the bankruptcy petition.
You have rights as a creditor. When individuals or businesses fail to pay back debt owed to you, what are your options? Your options primarily depend on whether the debt is secured by collateral or is an unsecured debt.