One of the most difficult aspects of having debt is that you have to deal with creditors or with the collection agencies that work for those creditors. Often bill collectors do not stop at anything to get a payment of the debt, even if it means threatening the person or not being honest about the consequences of not paying their debt. As a result, people in this situation often resort to bankruptcy procedures not only to deal with their debts but also to deal with their creditors. Hiring Oklahoma Bankruptcy attorneys can make a huge difference in stopping these calls.
Filing for bankruptcy
When filing for bankruptcy, the law provides folks with some protection from creditors, which is commonly referred to as "automatic detention." This mechanism can prevent creditors from performing certain actions against the person about the debts they have with them. Automatic detention does not prevent said creditors from permanently trying to charge the person with what is owed, but it will help during bankruptcy proceedings until they can discharge those debts.
tulsa bankruptcy lawyers could ensure this process occurs quickly.
For example, automatic detention can help you in certain situations when you are being sued for an uncovered debt, or your salary is being garnished to pay that debt. If you have credit card debt and the creditor filed a claim against you in order to collect that debt, automatic detention will prevent the creditor from pursuing the claim against you until the bankruptcy proceedings are over. Similarly, if your wages are being garnished to pay those debts, which actually reduces the income you receive, the lien must be stopped during bankruptcy proceedings.
Understanding the process
Automatic detention can also help in certain circumstances when people are about to lose their home. If a person’s home is subject to foreclosure by their mortgage company, Tulsa Okla bankruptcy can temporarily stop that process, and give the filing party more time to move or find another place to live. Although bankruptcy will not permanently stop the process, at least the person will gain some time to decide what to do with their home. Similarly, if an individual is being evicted from their home, automatic detention can prove to be an ally.
Although, there are certain situations where automatic detention cannot help debt collections. For
tulsa bankruptcy lawyers , if the IRS is auditing your income tax return, the audit will not be stopped because you have filed for Tulsa chapter 7 bankruptcy. Another common situation is in the case of child support. If a court has ordered the filing party to support their children, he or she must continue to pay while bankruptcy proceedings are taking place.