Bankruptcy Common Questions:
Before you decide to file a bankruptcy, you should speak to an attorney that isn’t a bankruptcy factory. What I mean by this is someone who can look at your debt and decide if this is the best option for you and give you alternate solutions if applicable.
What is bankruptcy?
It is a legal proceeding that is instituted to give citizens a fresh start. It is handled by federal law and handled by the federal court system. By filing bankruptcy, all creditors have to stop collecting any and all debts from you.
How does bankruptcy help me?
That depends on your personal situation, but there are a few things that are possible with a bankruptcy filing:
- The discharge of your debts and eliminating the legal obligation to repay most of the debt.
- Stop foreclosure proceedings and allow you time to catch up on late payments.
- Prevent repossession of property or a car, or even a return of repossessed property.
- End harassment from debt collectors, stop a garnishment of wages, stop other creditor actions.
- Restore/prevent utility termination
- Allows a citizen to challenge a creditor by using fraud or others who may be trying to collect more than you owe.
What does bankruptcy not do?
- It does not solve all your financial problems.
- Eliminate certain rights of secured creditors. The Bankruptcy Court can force a secured creditor to be paid over time and possibly not the full amount.
- Discharge debts established by the bankruptcy law to not be discharged: child support, student loans, court orders, criminal fines, most taxes, and alimony.
- Protect co-signers on your debts.
- Any debts created after bankruptcy has been filed.
Bankruptcy is a very serious decision to be made in one’s life.
While you are deciding whether to file or not, it is important to be armed with the correct information. At Myers & Eichelberger, we are always here to give you a free consultation and help you solve your debt issues. In a lot of consultations, a bankruptcy is not even needed.