What You Can Expect during the Bankruptcy Process

What Bankruptcy Will and Won’t Do for You

Though the bankruptcy laws can go a long way toward helping you get past financial problems and get a fresh start, they’re not a cure-all and won’t help you take care of all your financial problems. Accordingly, before you decide to file for protection, you want to have a realistic sense of what bankruptcy can and cannot do for you.

The Benefits of Bankruptcy

Bankruptcy can help you eliminate certain debts—the legal term is “discharge”—credit card payments, medical bills and other unsecured debt can usually be discharged. It won’t matter if the debt has been turned over to a collection agency or even if the debtor has filed and won a lawsuit on the debt. You can also discharge personal loans, residential lease arrearages, civil court judgments, utility bills and even Social Security overpayments.

Perhaps most important of all, a bankruptcy filing will trigger the automatic stay, which goes into effect immediately upon filing. It prevents your creditors from writing, calling or attempting to collect the debt in any way other than through the bankruptcy process.

What You Won’t Get from a Bankruptcy Filing

Certain types of debts are customarily not dischargeable:

• Child support and spousal support obligations cannot be eliminated in a bankruptcy proceeding
• It’s extremely difficult to discharge student loan payments or arrearages
• The process for discharging most tax obligations is complex, making it highly unlikely that you’ll rid yourself of these debts

It’s also important to understand that bankruptcy typically applies only to the debt, and not to the underlying lien. If there’s a lien on the property that has not been satisfied, the creditor can still exercise it (and may be able to repossess the property secured).

Contact Heath, TX Bankruptcy Attorney Carrie Weir

I offer a free initial consultation to all potential bankruptcy clients. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.