That is exactly right, Robert.

Diane, The filing of a bankruptcy petition changes the entire complexion of the collection arena.  Everything has to be handled through the bankruptcy court. The alternate methods of collection are no longer available. Sending demand letters, collection agencies and civil suits are all precluded by the stay order. The Court can cite violators with contempt.

Unsecured creditors are expected to share what is left of the bankrupt estate on a pro rata basis after the secured creditors, administrative expenses and certain classes of other debts are paid.

Preferential transfers made prior to filing of the petition are reversed and the funds are required to be repaid into the bankrupt estate.