How to File a Suggestion of Bankruptcy Effectively to Stop Creditors

This guide details the essential post-filing step: preparing and filing the Suggestion of Bankruptcy in the ongoing state court case to ensure immediate compliance with the stay and protect against actions like wage garnishment or bank levies.

While the federal bankruptcy filing triggers the powerful Automatic Stay (11 U.S.C. § 362), this injunction only works if the creditor or the state court is aware of the bankruptcy filing. Relying solely on the federal court’s mail or electronic notice process can be risky when time is of the essence.

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Updated on November 29, 2025.

Why the Automatic Stay is Not Truly “Automatic”

The automatic stay takes effect the moment the bankruptcy petition is filed with the federal bankruptcy court. However, the term “automatic” refers to the legal consequence, not the communication or knowledge that a bankruptcy has been filed.

• Electronic Filing (ECF): The major creditors, such as major banks and credit card companies, typically receive immediate electronic notification (ECF) because they are registered users of the federal bankruptcy court system.
• Mail Notice: Smaller creditors, local judgment collectors, or individual parties may not be ECF-registered. They rely on the bankruptcy court clerk to mail a notice of the filing, which takes time.

If a creditor’s attorney proceeds with a wage garnishment or bank levy before receiving official notice, the action violates the stay, but the damage is done, even though you will be able to ultimately retrieve your funds. Filing the Suggestion of Bankruptcy in state court is your proactive measure to eliminate to prevent this.

When a Suggestion of Bankruptcy is Necessary

The Suggestion of Bankruptcy is critical in any matter where a judgment has been entered or a state court action is pending against you, whether a credit card company lawsuit, a car repossession, or a foreclosure.

Stopping Wage Garnishments

If a creditor has secured a wage garnishment order, they will be able to take money from your paycheck. Depending on your state, this can range between 15-25% of your net pay. The automatic stay immediately stops this process.

Steps to Take: You must immediately file the Suggestion of Bankruptcy with the state/county court that issued the garnishment order. You should also serve a copy directly on the creditor’s attorney and your employer’s payroll department.

Protecting Bank Accounts from Levy

If a creditor has obtained a judgment and is attempting a bank levy, time is of the essence. Filing the Suggestion of Bankruptcy with the state court puts the bank account freeze on an immediate hold, preventing the final transfer of funds.

Step-by-Step Procedure for Filing the Suggestion

As the debtor (Pro Se), you are responsible for notifying the court and the creditor.

Recommended Method (PACER)

Establish a personal account with PACER.GOV (Public Access to Court Electronic Records). Log in, access your bankruptcy case docket, and download the official “Notice of Bankruptcy Case Filing” document. This is the simplest and fastest method to get the necessary proof. How to use the federal court’s PACER.gov system is explained in this video.

Alternatively, you can request a certified copy from the Bankruptcy Court Clerk, but this adds delay, especially if you reside in a different county than where the bankruptcy court is located. However, since each district is different, it is recommended that you confirm the local rules and the judge’s specific requirements, as some districts or judges might require a certified copy.

Draft a simple document, usually titled “Notice of Filing Suggestion of Bankruptcy” or “Suggestion of Bankruptcy.” This document formally states, e.g., “Comes now the Debtor, and hereby files this Suggestion of Bankruptcy, notifying the Court that a Chapter [7 or 13] Petition was filed on [Date] in the U.S. Bankruptcy Court for the [District Name], Case No. [XXXXX-XXXXX].”.

An example of the Notice of Filing is shown in the video below.

File in State Court

File your prepared pleading, attaching the federal bankruptcy court’s “Notice of Bankruptcy Case Filing,” with the Clerk of the state or county court that is currently handling the lawsuit against you.

Serve the Creditor

Ensure that the Notice of Filing and Suggestion of Bankruptcy are also served upon the opposing counsel (the creditor’s attorney) to guarantee they have been notified.

By following these steps, you take advantage of the automatic stay and guarantee that the process is handled smoothly, adding a necessary layer of protection

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.

Updated initially on February 16, 2025.