Bankruptcy is a legal avenue that allows a person to receive a fresh financial start. In certain cases, bankruptcy can be very useful and effective in resolving financial problems. However, you should only save this valuable option for when you really need it most.

Some Things Bankruptcy Can Do

  • Eliminate the legal obligation to pay most or all of your debts.
  • Stop foreclosure of your home and allow you to catch up on missed payments.
  • Stop repossession of a car or other property.
  • Stop wage garnishments.
  • Stop harassment by debt collectors.

Some Things Bankruptcy Can’t Do

  • Eliminate certain rights of secured creditors. Some examples of secured debts are car loans and home mortgages. You can force secured creditors to take payments over time, but generally, you cannot keep the property unless you continue to pay the debt.
  • Discharge debts that arise after the bankruptcy has been filed.
  • Discharge certain types of debts, such as child support, alimony, student loans, court restitution orders, criminal fines, and most taxes


Types of Bankruptcy that our firm handles

Chapter 7:  This is also known as “liquidation”. Your debts are discharged, but you must give up any nonexempt property to the trustee to pay to your creditors. You can keep secured property if you continue making the payments regularly.


Chapter 13:  This is also called “reorganization.” Chapter 13 allows you to keep valuable property, such as your home or car, which you might otherwise lose due to past due payments. You can keep this type of property in Chapter 13 if you are able to make the necessary payments. These payments include the regular monthly payments plus payments toward past due debt. In Chapter 13, you can have between three and five years to pay back the past due payments.


Is Bankruptcy Right For Me?

The only way to be sure bankruptcy is right for you is to discuss your situation with a bankruptcy lawyer. Every case is different, and laws change from time to time. This article gives you some basic information, but it is not a substitute for consulting an attorney.