What does it mean when people say bankruptcy gives you relief?

When you file a chapter 7 or chapter 13 bankruptcy there are certain benefits you will realize right away. These benefits include, any foreclosure or debt collection lawsuits against you are stopped, no creditors can call you or send you letters demanding payment and you are, for lack of a better term shielded from your creditors. This is due to the automatic stay which goes into place as soon as you file your case.

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