What Can Bankruptcy Do for Me?

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Filing a Chapter 7 bankruptcy may make it possible for you to:

  1. 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.
  2. Stop wage garnishments, debt collection harassment, and similar credit actions to collect a debt.
  3. 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:

  1. Stop all creditors from calling you, contacting you, or taking any legal actions to collect debts.
  2. Halt any attempts by creditors to repossess a vehicle, furniture, appliances or other property.
  3. 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.
  4. 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.
  5. The filing of your bankruptcy stops all State/County Court lawsuits and wage garnishments.
  6. Restructures Federal and State past due tax liabilities.
  7. Restructures vehicle payments when you owe more than the value of the vehicle.