Bankruptcy involves a legal proceeding in which an individual can eliminate debt or work out a plan to pay back debts while under the protection fo the United States Bankruptcy Court.
Bankruptcy can prevent continued legal action by creditors to collect debts.
Is bankruptcy the last resort?
Many individuals feel that bankruptcy should be a last resort if they have financial difficulties. That is not necessarily true. The bankruptcy process can be used to save a family’s home or their car and to eliminate wag garnishments.
Stopping collection action against consumers
Individuals who have fallen behind on their debts can have collection agencies making harassing phone calls and sending them threatening letters. The filing of a bankruptcy can stop all of this collection activity.
What can bankruptcy do for you?
The filing of bankruptcy can eliminate legal obligations to pay debts. The provisions in the bankruptcy code referring to the elimination of a debt is called a “discharge”. The discharge gives the debtor a fresh start.
Bankruptcy can stop foreclosures on homes and allow the debtor to reorganize their payment arrangements to save their home. A bankruptcy can stop the repossession of a car. If a car has already been repossessed, the bankruptcy can force the creditor to return the car to the individual.
Stop Wage Garnishment
Bankruptcy can stop wage garnishment and harassment from debt collection agencies.
Reduce Debt Payments
Bankruptcies can allow debtors to accomplish the reduction of payments on debts such as mortgages or car loans.
Elliot S. Schlissel, Esq. has been practicing bankruptcy law for over 35 years. He is the managing partner of Schlissel DeCorpo LLP. The law firm represents debtors in foreclosure defense and helps debtors file bankruptcy cases and obtain mortgage modifications. They can be reached for a free consultation at 800-344-6431 or by e-mail at Elliot@sdnylaw.com.