Bankruptcy: What It Can Do for You

Tracey M. Martin-Henry

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Litigation Lawyer

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Posted about 3 years ago. 1 helpful vote

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1

Stopping Foreclosure

You can stop foreclosure on your house, which can give you a chance to catch up on missed payments. (Bankruptcy does not automatically eliminate mortgages and other liens on your property without payment.)

2

Stopping Reposession

You can prevent a "vehicle repo" or other property or force the creditor to return property even after it has been repossessed.

3

Stoping Wage Garnishment

You can stop wage garnishments, debt collection harassment, and other creditor actions to collect a debt. You can also restore or prevent termination of utility services. And, bankruptcy can allow you to challenge creditor claims when fraud is involved or a creditor is trying to collect more than what you really owe.

4

Bankruptcy is Not a Cure-All (But, It Can Help Restore Financial Health Eventually)

Bankruptcy is not a panacea for every financial problem. In bankruptcy it is usually not possible to: Eliminate the rights of secured creditors, discharge debts singled out for special treatment, for example: Child Support, Spousal Support, Student Loans, Court Restitution Orders, Criminal Fines and Taxes. Bankruptcy cannot protect co-signers on your debts and it will not discharge debts that arise AFTER bankruptcy has been filed.

Additional Resources

People have a legal right to file bankruptcy and no one should feel ashamed or like a failure if forced to seriously consider bankruptcy. The recession has affected many good people who simply got caught up in bad financial circumstances due to: job loss, underemployment, medical debt due to uncovered illnesses, shaky investments, divorce, foreclosure or death of a spouse or loved one. If you live in SE Michigan, I can make referrals to some of the top bankruptcy attorneys in the state. Get a fresh start. Consult a competent bankruptcy attorney today.

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