Once a bankruptcy petition is filed, an "automatic stay" against all creditors goes into effect, regardless of whether the creditor has knowledge of the bankruptcy filing.
By law, creditors must cease all collection efforts against a debtor once the petition has been filed, including phone calls, lawsuits, etc.
The automatic stay is a powerful tool which puts a temporary stop to foreclosure actions, repossessions and possible lawsuits.
Exceptions to the automatic stay include alimony or child support payments, criminal restitution payments and suits by governmental agencies to protect the public.
There are limitations to the automatic stay as well.
The automatic stay does not arise if you are filing a case within a year of filing two other bankruptcy cases that were dismissed.
In that situation, a debtor must file a request for the stay to go into effect.
A secured creditor may also request to be taken out of the automatic stay and this is usually granted if the debtor is unable to make payments on the secured loan.
In a Chapter 7 case, the automatic stay terminates immediately after the case is closed providing the creditor with the ability to foreclose or repossess if the debtor is behind on any payments.
This would mostly apply to a mortgage or a vehicle loan that went into default after the bankruptcy case had been filed.
As long as the debtor remains current, there would be no risk of either foreclosure or repossession.
This is why people sometimes opt for a Chapter 13 case which enables them to pay off the past-due secured debt over a period of time.
Furthermore, in a Chapter 13 bankruptcy co-debtors are protected by the automatic stay.