How to File a Suggestion of Bankruptcy Effectively

Once you file for bankruptcy, the automatic stay prevents most lawsuits from moving forward, but you still might have to file a “suggestion of bankruptcy.” This way you can further protect yourself from a creditor taking any action against you such as seeking a wage garnishment or a bank levy.

Updated on February 16, 2025.

Do You Need a Suggestion of Bankruptcy?

A Suggestion of Bankruptcy works as a notice that a bankruptcy case has been filed. While the automatic stay immediately stops lawsuits in state court, it only stops the lawsuit if the creditor actually knows bankruptcy was filed.

For example, most creditors are registered with the bankruptcy courts to receive notices online. So once a bankruptcy petition is filed, that creditor receives notice immediately. But not all creditors are registered online, and it’s possible that a creditor, especially a smaller business that rarely deals with bankruptcy, is registered for online notices.

In that case, the creditor will receive notice via regular mail, but the Suggestion of Bankruptcy can be filed in state court to immediately notify that creditor.

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This is especially important if facing a wage garnishment. By filing the Suggestion of Bankruptcy with the state court, the creditor will find out immediately. This will prevent the wage garnishment from moving forward.

Take the Necessary Steps to Protect Yourself from Creditors

It’s recommended you set up a PACER account. This way you can watch closely your bankruptcy case. Once you are logged and you access your case, you will find the link “Notice of Bankruptcy Case Filing.”

From there, your screen should see a document below, like the one of my prior clients.

You can print up that document and file it with the clerk’s office in state or county court. There should be a cover page for the Suggestion of Bankruptcy, typically known as a “Notice of Filing.”

The Notice of Filing explains the document being filed, in this case, the Suggestion of Bankruptcy. The clerk’s office usually has templates you can use.

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Once the Notice of Filing and Suggestion of Bankruptcy is filed, the creditor will receive notice immediately via the court’s online filing system.

This will add another layer of protection to the automatic stay.

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Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon Books. To access my YouTube channel, click this link. Archives can be found via this link.

Disclaimer: This post is for informational purposes only and should not be considered legal advice.  Bankruptcy laws can be complex, and consulting with a qualified bankruptcy attorney is always recommended to discuss your specific situation.