Under most state laws a business is not allowed to assert an action or claim against someone in another state if it the action/claim arises for a transaction for which they are not properly registered with the state. This often arises in the case where lenders are not licensed to grant home equity loans in a certain state.

One of the biggest benefits to filing for bankruptcy protection is the automatic stay, which forbids the continuance of any action by any creditor against the debtor.

Consumers left hanging while kinks are worked out of the system.