December 18, 2017

What can bankruptcy do for me?

Bankruptcy can give you a fresh start. It will stop nagging creditor calls, foreclosures, auto repossession, wage garnishment and potentially resolve IRS debt.

Bankruptcy cannot, however, cure every financial problem, nor is it the right step for every individual. In bankruptcy, it is usually not possible to:

  • Eliminate certain rights of “secured” creditors. A “secured” creditor has taken a mortgage or other lien on property as collateral for the loan. Common examples are car loans and home mortgages. You can force secured creditors to take payments over time in the bankruptcy process and bankruptcy can eliminate your obligation to pay any additional money if your property is taken. Nevertheless, you generally cannot keep the collateral unless you continue to pay the debt. As a general rule, if you want to keep your possessions, then you must continue to pay for them.
  • Discharge types of debts singled out by the bankruptcy law for special treatment, such as child support, alimony, student loans, court restitution orders, criminal fines, and some taxes.
  • Protect cosigners on your discharged debts. When a relative or friend has cosigned a loan, and the consumer discharges the loan in bankruptcy, the cosigner may still have to repay all or part of the loan.

I hope I have answered some of your questions. If you would like more information or wish to set up a free initial consultation with me, you may call one of our offices at the numbers noted above.