Bankruptcy is a serious financial decision―but it can be the best decision for you. Bankruptcy is a powerful financial tool that can erase your debts and give you a fresh start. When you’re exploring bankruptcy you need comprehensive and reliable bankruptcy information. You need to know the impact of filing for bankruptcy, both the positive and negative.

Contact us for a free consultation with an experienced bankruptcy attorney. No pressure, no obligation. Just the reliable information you need.

Bankruptcy Erases Debt

At the conclusion of a successful bankruptcy filing your dischargeable debts will be erased. You will no longer be legally obligated to pay back those debts, ever.

The most common debts that are dischargeable include:

  • Credit cards
  • Medical bills
  • Personal loans
  • Utility bills
  • Certain older tax debts
  • Other types of credit or loans that were given without a collateral requirement.

These creditors will never legally be able to attempt to collect payment for debts that are part of your bankruptcy discharge.

Bankruptcy Does Not Erase All Types of Debt

The U.S. Bankruptcy Code lists certain types of debts that cannot be erased through bankruptcy, known as nondischargeable debts. You are legally obligated to pay back nondischargeable debts after bankruptcy.

The most common debts that are nondischargeable include:

  • Spousal or child support payments
  • Fines imposed by a government body
  • Debts resulting from illegal activity
  • Debts incurred by fraud
  • Some tax debts, including newer tax debts
  • Student Loans
  • Debts for death or personal injury caused by the debtor while driving under the influence of drugs or alcohol

This list is not exhaustive. Due to either the type of debt you owe or when or how it was incurred, you may have other debts that are also nondischargeable. When it comes to bankruptcy, every case truly is unique.

Bankruptcy Law Protects Many of Your Belongings and Assets

The truth is most people who file for bankruptcy get to keep most or all of their assets and personal belongings. The U.S. Bankruptcy Code, as well as the state of Georgia, provides for you to keep the property, assets, and other belongings valued up to a certain dollar amount through exemptions. You get to keep the exempt property if its value does not exceed a certain dollar amount. For more information, read our article Filing Bankruptcy Does Not Mean Giving Up All Of Your Possessions.

Impacts to Your Credit Report

Filing for bankruptcy will affect your credit report for years.

If you file for Chapter 7 bankruptcy, it will remain on your credit report for 10-years after your filing date (not the date you receive your bankruptcy discharge order). If you file for Chapter 13 bankruptcy, it will remain on your credit report for 7-years after your filing date (not the date of your final plan payment, or the date you receive your bankruptcy discharge order).

However, after bankruptcy people are able to get loans and lines of credit even though the bankruptcy continues to report. The loan terms and interest rates may not be favorable right after bankruptcy, but will continuously improve over time so long as bills are paid on-time, every month.

Bankruptcy Stops Collection Phone Calls and Wage Garnishments

As soon as you file for bankruptcy all collection action against you must stop, including collection calls. The automatic stay, a provision of the Bankruptcy Code, puts an immediate end to collection phone calls, wage garnishments, bank levies, lawsuits, and any other debt collection action against you.

Powerful and Positive Impacts of Bankruptcy

Erasing debt, halting all collection action, and protecting your belongings from creditors are just a few of the powerful and positive impacts bankruptcy offers. Bankruptcy can also erase certain older tax debts, give you the opportunity to catch up on the missed mortgage or car payments, and can even lien strip away an underwater second mortgage.

We are committed to helping people get out of debt and gain the financial freedom they deserve. We invite you to learn more about who we are here. If you live in Savannah, GA or the surrounding areas and have questions about your debt relief options, let’s meet for a free consultation.

Please reach out to us at (912) 351-9000 or contact us by filling out this simple web form. Follow us on Facebook for tips on getting out of debt!


We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code. Find out more about Bankruptcy in our guide: All About Bankruptcy.

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