How Does it Work? First, fill out the free evaluation form above – it should take no more than 30 seconds and it’s 100% FREE and SECURE. After that, our office will call you to see if you’re eligible to file for bankruptcy. If you are, then you’ll speak with one of our attorneys to discuss your options.
Bankruptcy can eliminate…
- Credit Card Debt
- Hospital Bills
- Foreclosure threats
- Wage garnishments
- Calls from collectors
- Outstanding Bills
- Collection Efforts
- Various Tax Debt
Bankruptcy can help you keep…
- Assets like your car
- Your hard-earned wages
- Fixed Assets like Furniture
- Your Work Equipment
- Retirement-related Accounts
- Social Security Benefits
- Disability Benefits
It has been famously quoted “Bankruptcy is the beginning of financial stability, not the end.” Bankruptcy also has a caused people to think that “If I declare bankruptcy, I admit defeat, I admit I’m a failure.” This is completely opposite to the truth. Do not beat yourself up in some sort of debt purgatory which could have even more harmful outcomes than if you did not do anything. We would like to help you appreciate how to best think about bankruptcy simply as a tool to help you get back on your feet.
A bankruptcy discharge eliminates an individual’s obligation to pay back certain consumer debts. This is called an automatic stay. Creditors will not be able to act against a filer such as contacting, harassing, or suing the debtor. They will not be able to garnish your wages or freeze your bank accounts. Bankruptcy allows the filer to either sell their non-exempt property or enter a payment plan that will work with their financial income.
Bankruptcy does not necessarily erase all financial responsibilities.
It does not discharge the following types of debts and obligations:
- Federal student loans (unless you meet strict criteria)
- Court-ordered alimony and child support
- Debts that arise after bankruptcy is filed.
- Some debts incurred in the six months before filing bankruptcy.
- Some taxes
- Loans obtained fraudulently.
- Debts from personal injury while driving intoxicated.
It also does not protect those who co-signed your debts. Your co-signer agreed to pay your loan if you did not or could not pay. When you declare bankruptcy, your co-signer still may be legally obligated to pay all or part of your loan.
Filing for bankruptcy is not a panacea to save you from all your financial burdens. You will most likely lose most of your property that are non-exempt possessions that have some value, or you will have to be placed on a debt-relief or wage-earner’s plan. This will give you an opportunity to develop a plan to help repay all your debt and keep what you have. Both will allow you to begin anew with a fresh start but filing for bankruptcy does impact your credit score making it hard to borrow money when you need it, not to mention that if you do chapter 7, the effects last for up to 10 years, for chapter 13, it about 7 years. Bankruptcy can also affect friends and family that decided to help you by co-signing a loan. If you are considering bankruptcy, your credit report and credit score probably are damaged already. Your credit report may improve, especially if you consistently pay your bills after declaring bankruptcy. Still, because of the long-term consequences of bankruptcy, some experts say you need at least $15,000 in debt for bankruptcy to be beneficial.