Benefits of Filing Bankruptcy
Learn how filing Bankruptcy can eliminate
Get Rid of those DebtsBankruptcy allows you to eliminate all of your debts, except for some debts such as some taxes and most student loans. This is called a "discharge" of your debt by the bankruptcy court. This means that you no longer owe this debt to the creditor. No creditor of a discharged debt can ever attempt to collect on that debt, either by calling you, having a collection agency call you, or by reporting you to a credit agency. Certain types of taxes can be discharged if the taxes are old enough. To discharge student loans is very difficult, but can be done in rare cases.
Keep those Asset You Want to KeepKeep Those Assets You Want to Keep!
If you want to keep your home, for example, you are able to get rid of your other debts so that you only have to pay your home loans. If you have a second mortgage, and your home is worth less than the outstanding principal of your first mortgage, you may be able to strip your second mortgage thereby savings you thousands of dollars. You may keep your cars too. If you are behind on your car or home loans, you may be given up to 5 years to pay back the missed payments and keep the home and cars.
Get Rid of IRS TaxesGet Rid of Taxes!
If you owe the IRS or other taxing agency, you may be able to discharge your taxes through bankruptcy. There are no limits on the amount of the back taxes, but there are qualifying factors that must be satisfied.
Stop Wage GarnishmentsStop Wage Garnishments!
Bankruptcy can be a lifesaver if you are suffering from a wage garnishment. Garnishments can be up to 25% of your weekly income and could cause your bank account and tax return to be seized. The law requires that all wage garnishments stop immediately upon the filing of bankruptcy. Once filed, a creditor must immediately stop all garnishment activity.
Bankruptcy Stops All LawsuitsStop Lawsuits!
A lawsuit is a legal action against you by the plaintiff (the person or company suing you) to recover what is owed (credit card or loan debts) or to collect damages as a result of a car crash, contract dispute or other disputes. The plaintiff's goal is to obtain a judgment against you. With a judgment, the creditor can garnish your wages, take money from your bank accounts, take your cars and sell them at auction, and many other unpleasant actions. Remember, judgments are renewable every 10 years, so they can haunt you forever. It is best to stop the lawsuit before the judgment is obtained. Once your bankruptcy case is filed, the law immediately stops all lawsuit proceedings. If you have been informed that a lawsuit has been filed against you, do not delay.