When an individual or married couple is deep in debt due to a job loss, medical emergency, or other life-changing events, filing for bankruptcy might be the best choice for them.
While bankruptcy bears the brunt of negative publicity from credit card companies and big banks, there is rarely public discussion on how bankruptcy helps people. Bankruptcy can help a family save their home, help a young professional just starting her career to save her car and erase credit card debt, and help a married couple erase medical debt after the husband suffered a long-term and costly illness. Bankruptcy is a powerful legal tool.
The Ways Bankruptcy Helps People
Bankruptcy helps people by eliminating or reducing debt, stopping creditor harassment, preventing (at least temporarily) foreclosure proceedings or repossession, and gives people the breathing room they need while addressing their debt problems.
Filing for bankruptcy protection can also help people by:
- Erasing most unsecured debts: including credit card debt and medical bills.
- Erasing certain older tax debts and some other unsecured debts.
- Putting an end to harassing phone calls from creditors.
- Stopping wage garnishments and bank levies.
- Stopping lawsuits filed by creditors.
- Creates an opportunity to catch up on mortgage arrears (Chapter 13 only).
- May create an opportunity for a homeowner to “lien strip” or eliminate a second mortgage (Chapter 13 only).
- Creates an opportunity to catch up on missed car payments (Chapter 13 only).
- Creates an opportunity to catch up on other missed payments, such as back taxes or child support payments(Chapter 13 only).
- Depending on your specific situation you will most likely be able to keep your car and your home. It is more likely that you can keep your car or home if your payments are current and there is no significant equity.
Bankruptcy can help people in numerous ways. For many debtors, filing for bankruptcy is the best solution to their overwhelming debt problem.
The Ways Bankruptcy Can Help You
To understand how bankruptcy can help you specifically, we invite you to meet with us for a free, no-obligation consultation. We practice exclusively in bankruptcy law and have been for over 35 years. We serve the people of Savannah, GA and the surrounding areas.
Find out more about Bankruptcy in our guide: All About Bankruptcy
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.