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.
- Filing for bankruptcy will not help with alleviating payments such as: