Automatic Stay
The automatic stay (which takes effect the day your case is filed) is effective against all entities and brings almost all forms of civil legal action against the you to an abrupt halt, 11 USC 362(a)(1)-(8), Willford v. Armstrong World Industries, Inc., 715 F.2d 124, 126 (4th Cir. 1983). Hence, foreclosure, repossession, wage and bank garnishments etc. must stop upon filing of the petition.
Preference Payments
Payments to a fully secured creditor are generally not preferential. See, e.g., In re World Financial Services Center, Inc., 78 BR 239 (BAP, 9th Cir. 1987)
Exemptions
Student Loan Proceeds held in Savings are Exempt
20 U.S.C. 1095a(d) provides: "(d) No attachment of student assistance
Except as authorized in this section, notwithstanding any other provision of Federal or State law, no grant, loan, or work assistance awarded under this subchapter and part C of subchapter I of chapter 34 of Title 42, or property traceable to such assistance, shall be subject to garnishment or attachment in order to satisfy any debt owed by the student awarded such assistance, other than a debt owed to the Secretary and arising under this subchapter and part C of subchapter I of chapter 34 of Title 42."
Social Security Funds Held in Bank Accounts Exempt under Federal Statute
42 USC §407, Philpott v. Essex County Welfare Board, 409US 413, 93 S.Ct 590 (1973).
