Filing for bankruptcy, as we discussed previously on our Tyler Texas bankruptcy law blog, provides consumers with protection against their creditors' efforts to collect on their debts. This protection is known as the automatic stay. While it's a powerful benefit, its protection is not absolute. Let's look at some situations where the automatic stay does not trump your creditors' rights.
Unexpected life challenges such as the loss of a job or medical expenses can result in debt that only adds stress to the lives of individuals who may already be struggling. Relief from debt and a fresh financial start can be available through bankruptcy options. There are two primary personal bankruptcy options to consider including Chapter 7 liquidation bankruptcy and Chapter 13 reorganization bankruptcy.
When Tyler residents file for bankruptcy - whether Chapter 7, Chapter 13 or another form of protection - they gain the immediate benefit of the automatic stay. The automatic stay halts efforts to collect on your debt while the bankruptcy proceeds through the court. This is a powerful tool for consumers, but it's important to understand the limitations of the automatic stay as well as creditors' rights with regards to the automatic stay.
Public school teachers in Tyler, like their colleagues throughout the country, are accustomed to earning a modest salary. In many cases, salaries would rightly be called "low," especially for those working in schools in low-income areas.