When filing for either Chapter 7 or Chapter 13 bankruptcy there are few things that you can expect from your creditor.
The creditor will stop all collection actions against you. This means that when you file for bankruptcy the creditor will not call, send you letters or try to seize your bank accounts or garnish your wages.
The creditor will file a claim against your assets in the bankruptcy court.
The creditor may challenge your right to discharge the debt in bankruptcy.
The creditor may claim that you are hiding assets or that you have transferred assets in order to avoid repayment of debts. If the creditor can prove this your bankruptcy case may be dismissed.
Secured creditors will most likely ask for a “relief from stay” caused by the bankruptcy filing. If the judge grants this relief to the secured creditor they will have power to seize assets such as a car that still has payment obligations.
A creditor will also closely monitor your bankruptcy case and if it is dismissed, they will most likely quickly resume collection actions against you.
