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Facts about Bankruptcy

The decision to file for Bankruptcy Protection should only be made after discussing your financial situation and goals with one of our attorneys to determine if Bankruptcy is right for you.

What is Bankruptcy?

Bankruptcy is a process under Federal Law used to relieve debtors of their financial burdens. It offers them a fresh start. The act of filing for bankruptcy will immediately stop all of your creditors from contacting or even suing you, until all your debts are handled and sorted out by the bankruptcy court. There are several different chapters that a person can file under and our attorneys can explain which options are right for you.

What Can Bankruptcy Do?

  • Eliminate your legal obligation to pay certain debts. This is called a “discharge” of debts.
  • Stop foreclosure on your home and allow you an opportunity to catch up on your mortgage.
  • Prevent repossession of cars, boats, motorcycles and other property and even force creditors to return property already repossessed.
  • Stop collection law suits, debt collection activities, and creditor harassment.
  • Prevent the disconnection of utility services.

What Bankruptcy Cannot Do.

Bankruptcy typically cannot eliminate “secured creditors” such as your mortgage or loans on vehicles. You will have the option of giving the property back to the bank or financial institution and “walk away” from the debt, or if you choose, to negotiate with the financial institution to keep the asset and continue paying on it.

Other obligations that cannot be discharged include:

  • Child Support
  • Alimony
  • Most student loans
  • Certain court restitution orders
  • Criminal fines
  • Some taxes

Bankruptcy cannot solve all financial problems, so meeting with one of our attorney’s will help you decide if filing bankruptcy is right for you.