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WHAT CAN A BANKRUPTCY DO FOR ME?
Filing a Chapter 7 bankruptcy may make it possible for you to:
- Eliminate the legal obligation to pay most or all of your debts. This is called a "discharge" of debts. It is designed to give you a fresh financial start.
- Stop wage garnishments, debt collection harassment, and similar credit actions to collect a debt.
- Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than you really owe.
Filing a Chapter 13 Bankruptcy may make it possible for you to:
- Stop all creditors from calling you, contacting you, or taking any legal actions to collect debts.
- Halt any attempts by creditors to repossess a vehicle, furniture, appliances or other property.
- Relieves you from trying to pay delinquent bills one at a time, by placing all of your past due bills into a single payment plan and stopping interest and late fees on many of them.
- The U.S. Bankruptcy Court, through your Chapter 13 Trustee, takes over your payment duties and uses your single monthly payment to help you work out of your difficulties.
- The filing of your bankruptcy stops all State/County Court lawsuits and wage garnishments.
- Restructures Federal and State past due tax liabilities.
- Restructures vehicle payments when you owe more than the value of the vehicle.