What Is Bankruptcy?
Filing bankruptcy allows you to make a fresh financial start. Bankruptcy is a legal process available to people who are unable to pay their debts. It acts to remove (discharge) certain debts you are unable to pay. Bankruptcy, a creation of federal law, is controlled and handled in Federal Bankruptcy Courts.
When a Petition for Bankruptcy is filed, it immediately creates what is called an "automatic stay." This stops creditors from attempting to collect debts or contact you, at least until your debts are sorted out according to applicable laws. Bankruptcy allows you to discharge or eliminate the obligation to repay some or all of your debts.
Filing Bankruptcy Petition May:
- Stop foreclosure proceedings on a person’s home and allows a debtor an opportunity to catch up on missed payments (it is important to note that bankruptcy does not automatically eliminate mortgages and other liens on property).
- Stop repossession proceedings on vehicles or other property and can even force lenders to return repossessed property to the debtor.
- Halt wage garnishments, debt collection harassment, and other similar actions by creditors.
- Restore service or prevent termination of utility services.
- Allow an individual to challenge the claims of creditors who have committed fraud or are attempting to collect more restitution for a debt than the amount actually owed.
Filing Bankruptcy Petition Will Not:
- Reduce or eliminate alimony, child support, court-ordered restitution and criminal fines.
- Eliminate all types of student loans and tax debt. (Some types may be included).
- Discharge secured debts, unless you are willing to release the property that secured the debt to the creditor.
- Have the same results, no matter what Chapter of Bankruptcy you file. Learn more about the Types of Bankruptcy Chapters. We can help you decide which type is best for your situation.
- Improve your credit rating to help you borrow more money.
- Be a permanent solution to poor financial choices.
How We Can Help
If you are facing foreclosure, you need to act quickly and seek legal counsel to effectively protect your home and other assets. You will need an experienced bankruptcy lawyer. The process to file can be complicated and time-intensive. The attorneys at Hurst & Hurst Law will help you navigate through the complex and often confusing bankruptcy procedure.
The advice and help of a competent attorney, experienced with applicable laws and procedure, is essential to help you determine if bankruptcy is your best option, or if there are other ways to address your situation more effectively. If you think you may need to file bankruptcy, contact a bankruptcy lawyer at Hurst & Hurst Law at (859) 209-2101 today.