How Bankruptcy Helps and How it Doesn't

How bankruptcy HELPS and how it may not:

Although bankruptcy is normally not a person's first choice, it is sometimes the best solution to overwhelming and unmanageable debt. There are several benefits and ways that bankruptcy can help:

  • How it may HELP YOU by:
    • Save your home from Foreclosure! By timely filing for bankruptcy the laws provide protection for a debtor's home by imposing an Automatic Stay on foreclosure proceedings;
    • Protect your vehicle from creditors. The Automatic Stay can also protect your car from repossession, or even in some cases force a creditor to return the vehicle to the owner;
    • Keep your utilities on! The Automatic stay can force utility companies to keep your electricity and water running, and sometimes even reconnect if service has been terminated for non-payment;
    • Stop Creditor Harassment and Wage Garnishments;
    • Completely stop or lower payments to creditors. The automatic stay lower payments to creditors by at times eliminating the interest; and
    • DISCHARGE YOUR DEBT COMPLETELY! Qualifying debtors can discharge all their consumer debt by filing a Chapter 7 Bankruptcy. When a debtor's debt is discharged, they no longer have an obligation to pay.
    • Bankruptcy may be the only way to get a fresh start!

  • Where bankruptcy MAY NOT help:
    • Filing for bankruptcy will not help with alleviating payments such as:
      • Child support
      • Alimony
      • Most taxes
      • Most student loans
      • Criminal fines
    • Bankruptcy may not discharge certain liens of secured creditors. A secured creditor is one that has the ability to place a lien on the debtor's property for non-payment of the debt.
    • Filing for bankruptcy will not assist in discharging debt incurred after the filing of the bankruptcy.
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