Bankruptcy: What It Can Do for You

Tracey M. Martin-Henry

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Litigation Lawyer

Contributor Level 14

Posted about 3 years ago. 1 helpful vote



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.)


Stopping Reposession

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


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.


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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