What does filing a bankruptcy do?

 

A bankruptcy filing will stop your creditors from trying to collect from you — it will stop the phone calls, the letters, and the lawsuits — and can even stop a foreclosure, repossession, levy or wage garnishment. Bankruptcy is like a “time out” that gives you an opportunity to deal with all of your financial issues at once.

 

Bankruptcy is a powerful tool to get your financial life back on track. For most people, by the time they are considering bankruptcy, their credit has already begun to suffer. As time goes on and payments continue to be missed, the situation worsens. Bankruptcy is a way to stop the bleeding and give yourself a fresh start.

 

How can I tell if a bankruptcy will help me?

 

If you answer yes to any of the questions below, you may want to consider the relief a bankruptcy can provide.

 

• Are you facing foreclosure of your home or repossession of a car or other property?

 

• Are your wages being garnished?

 

• Are you considering selling your possessions or taking money out of a retirement account in order to pay your bills (or have you already)?

 

• If you stopped paying your credit card bills, would you have enough money to make ends meet?

 

• Are you unable to save for the future–retirement, college, unexpected expenses?

 

• Do you sometimes go without essentials, like medical or dental care, or car or home repair, because you can’t afford it on top of your monthly bills?

 

• Are you behind on your mortgage payments, taxes, child support or alimony and need a way to catch up?

 

• Do you have a second (or third) mortgage that is completely underwater?

 

• Has a creditor put a lien on your property?

 

• Are you being sued or harassed by debt collectors?

 

To learn more about whether a bankruptcy can help you, you should talk with an attorney. Like most attorneys, I’d be happy to meet with you free of charge to learn about the specifics of your situation and discuss your options with you.