COHEN LAW OFFICESBANKRUPTCY
What Is Bankruptcy?
BK is a legal proceeding in which a person who cannot pay his or her bills can get a fresh financial start. The right to file for BK is provided by federal law, and all BK cases are handled in federal court. Filing BK immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law.
What Can Bankruptcy Do For Me?
BK may make it possible for you to:
- 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.
- Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. (BK does not, however, get rid of mortgages and other liens on your property without payment.)
- Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.
- Stop wage garnishment, debt collection harassment and similar actions to collect a debt.
- Restore or prevent termination of utility services.
- Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than what you really owe.
What Bankruptcy Cannot Do For Me?
BK cannot, however, cure every financial problem. Nor is it the right step for every individual. In BK, it is usually not possible to:
- Eliminate certain rights of “secured” creditors. A “secured” creditor has taken a mortgage or other lien on your property as collateral for the loan. Common examples are car loans and home mortgages. You can force secured creditors to take payments over time in the BK and BK can eliminate your obligation to pay any additional money if your property is taken. Nevertheless, you generally cannot keep the collateral unless you continue to pay the debt.
- Discharge certain types of debts singled out by the BK law for special treatment, such as child support, alimony, or other debts related to divorce, student loans, court restitution orders, criminal fines and certain taxes.
- Protect co-signers on your debts. When a relative or friend has co-signed a loan and you discharge the loan in BK, the co-signer may still have to repay all or part of the loan.
- Discharge debts that arise after BK has been filed.
Call Lisa today to schedule your bankruptcy appointment with Cohen Law Offices or fill out the form below. Or, if you prefer, click the red appointment widget to the right ---> to schedule an appointment yourself.
Member, National Assoc of Consumer Bankruptcy Attorneys