The reason why the phrase says “filing for bankruptcy protection” is because when you file, the court issues orders that help protect you from creditors.
The main move that does this is the automatic stay. This order stops all credit collection activity.
Stops creditors from contacting you
The automatic stay will prevent creditors from contacting you about any debt. Debt, in this case, also includes regularly due payments. For example, your auto loan provider cannot contact you to tell you your payment is late.
If you have a pending lawsuit for the collection of a debt, then the automatic stay will end this as well. Typically, you will get a notice from the court in which the creditor filed the case letting you know that your case is on hold due to your pending lawsuit.
Usually, you can let the court know that you are filing for bankruptcy. It may give you more time if your case is close to a final order. This will help you to avoid getting a judgment that you may not be able to discharge in the bankruptcy.
Stops repossessions or foreclosures
Your creditors cannot take any action against you for your outstanding debts. This includes repossessing assets or foreclosing on your property.
Does not stop exceptions
The exceptions to these rules about the automatic stay are debts you cannot discharge through bankruptcy. If you cannot wipe it out with your filing, then those creditors can continue to collect. Examples include child support and taxes.