Posted by Wesley Scott on September 23, 2018 at 9:40 AM
Wesley Scott

Section 301(a) of the Bankruptcy Codes states that a voluntary Chapter 7 Bankruptcy is commenced with the filing of a petition with the bankruptcy court. A petition, simply put, is a formal written request, signed by you, appealing to the bankruptcy court for relief.

Section 301(b) states that the commencement of case under this chapter constitutes an order for relief under Chapter 7 Bankruptcy. So, immediately upon filing of the petition for Chapter 7 Bankruptcy, there is a court order for relief granted. That is an amazing thing which triggers obligations on the part of both creditors and debtors.

If you are like many people suffering from overwhelming debt, and you have creditors chasing you down for payment, the commencement of a Chapter 7 bankruptcy constitutes an immediate order for relief. Section 362(a) states that a filing of a petition under Section 301(a) of the Bankruptcy Code operates as a stay or an injunction if you will against a host of creditor activities such as trying to collect on a prepetition debt owed by debtor to creditor.

So, debtor does not have to go to court to seek an injunction, an injunction is automatically issued upon filing of the petition with the bankruptcy court. That is some awesome power debtor has to stop collection activity from occurring. Why is this important? Because, in effect, the filing of the petition creates a “time out” where creditors have to stop chasing debtor and debtor’s assets.

This allows times for debtor and a Chapter 7 trustee to orderly liquidate any non-exempt assets debtor may have without the run on debtor’s assets where few creditors get a lot and most get nothing.


When the time is right, or when you are ready, reach out to Minnesota’s oldest bankruptcy law firm at www.kainscott.com. You will be glad you did!

Sign up for a Free Bankruptcy Consultation

Topics: Chapter 7 Bankruptcy, Filing Bankruptcy, MN Bankruptcy

Take the first step toward  getting your life back  Let us help you get started on your road to a debt-free life Sign Up for a Free Consultation