Stop Collection Activity
Credit problems can harm your relationships, impact your job and may effect your health. However, you don’t have to face them alone. Let our experienced Oklahoma City bankruptcy attorney discuss your issues. We can help you determine if bankruptcy relief is appropriate for you. Let us help you stop collection activity.
Whether a creditor has threatened legal action, recently filed a lawsuit or is already garnishing your wages or bank accounts, Chapter 7 Bankruptcy will, in most instances, stop this collection activity.
The Automatic Stay
When you file for relief under Chapter 7 of the Bankruptcy Code, the Automatic Stay goes into effect. The Automatic Stay is a provision of the Bankruptcy Code which prohibits and stops most collection activity.
Once you file for Chapter 7 relief, a creditor must request and receive an order from the Bankruptcy Court to resume collection activity. In most instances, this would involve a creditor who is seeking to continue or institute a foreclosure or repossession action or a former child or spouse with regard to a domestic support obligation. (If you are involved in a foreclosure or repossession and wish to attempt to keep your property, a Chapter 13 Bankruptcy may be a better option
Finally, at the successful conclusion of your Chapter 7 case, the Bankruptcy Court will enter a Discharge. This operates to discharges all of your dischargeable debts and serves as a permanent injunction on future collection activity.
If you would like to discuss options regarding your credit or collection situation, call us today. We are here to help!
(We are a debt relief agency and we help people file for bankruptcy relief under the Bankruptcy Code.)