Maybe you've spent sometime on Google researching what a personal bankruptcy can and cannot do for your financial situation. Maybe you've asked people you know, questions about a personal bankruptcy. The fear of not knowing can be daunting, and sometimes what you read or hear are far from the truth and somewhat misleading.

What a personal bankruptcy can and cannot do with your debt is important to know. Bankruptcy laws were designed to give the Debtor the ability to seek financial relief through a legal means that provides the Debtor with a fresh start from the burdens of debt. Not all debts are forgiven, and the bankruptcy code specifically states exactly what types of debts will remain with the Debtor and are considered non-dischargeable debts.

The bankruptcy laws were also designed to help a honest Debtor receive a discharge from those debts that are in fact dischargeable. However, the bankruptcy code gives the creditor the ability to bring an action by way of an adversary proceeding on debts that the Debtor may have procured through fraud. If the Creditor is successful on its action, the debt in question will be ruled as a non-dischargeable debt.

The Debts that are dischargeable in the bankruptcy will eliminate the Debtor's legal and financial obligations on the debts, and thus give the Debtor a fresh start. The filing of a chapter 13 bankruptcy can stop a foreclosure sale on your home, and allow you the ability to propose a plan to catch up on the missed mortgage payments for example. A bankruptcy can stop wage garnishments and debt collection efforts. A bankruptcy can prevent your vehicle from being repossessed, and it can prevent the utility company from shutoffs or restore previous shutoff utilities. A bankruptcy can allow you to dispute debts from creditors that are not your debts. These are but a few of the many ways a bankruptcy can help you.

I always recommend hiring an experienced bankruptcy attorney, to successfully put together and file your personal bankruptcy. The bankruptcy code and procedural rules, including document disclosures etc. are very specific, and the pro se Debtors who file their own cases cannot utilize the defense of ignorance of the law, as it offers no excuse of having to follow the laws and procedures of bankruptcy. By way of a few examples, you have to list all your debt, not just the debt you want to include in your personal bankruptcy, you have to list all your assets, monies that are owed to you, or personal injury, wrongful discharge of employment etc., you are thinking about pursuing. You have to list monies you paid back to your relatives on loans you owed them, and list the debts you still owe family members. The Debtor's failure to disclose can possibly lead to imprisonment and fines. This is because you sign your bankruptcy petition under penalty of perjury, and the Trustee has you take an oath under law at the hearing concerning the Debtor's bankruptcy petition, of which the hearing is recorded.

Myself and my staff are fully vaccinated from the Covid-19. We offer in-office initial consultations, as well as Zoom and by phone. Schedule your free initial bankruptcy consultation today at or call at 989-891-9780. We can also be found on Facebook.

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