What is Bankruptcy?

Bankruptcy is a legal proceeding afforded to people who are unable to handle a financial crisis. Bankruptcy is available so that you can have a fresh start.

Filing for Bankruptcy can have the following impact:

• Relieves you of unsecured debt that you are unable to pay such as medical bills, credit cards, bank loans, business debts, overdraft charges, utility bills, and more. Not all unsecured debt is dischargeable. See Chapter 7 Basics

• Stops creditor harassment. After you file a bankruptcy petition, the Automatic Stay protection immediately works to prohibit creditors from calling, billing, threatening, suing or taking any measures to collect from you. After you file a Bankruptcy Petition, even secured creditors must get court permission to repossess your car, or foreclose on your home. 

• Gives you the opportunity to catch up on your car and/or mortgage payments.

If you're an individual and feel that there is no way out of your debt troubles — filing bankruptcy may be your best option. Individuals file personal bankruptcy because they need financial relief and seek a second start: A Chapter 7 bankruptcy or a Chapter 13 Bankruptcy can help you overcome problems if:

• You are facing home foreclosure and fear losing your house

• There has been wage garnishment assigned to your pay checks

• You have been laid off or face other job problems

• There has been a medical crisis to you or one of your family members

• There are pending lawsuits

• You have recently been divorced

• You want to stop creditor harassment

When these problems are regular occurrences, you'll want to learn more about what filing a Bankruptcy can do to help you. There are Bankruptcy Laws all over the nation designed to help you. There is life after bankruptcy: Seeking professional advice from bankruptcy attorneys and bankruptcy lawyers will help.