By: J. Bernstein. I’ve often been asked the simple question…”what can consumer bankruptcy do for me?” To which my response is usually…”it depends on your specific situation and you also need to know what it can’t do for you.” So, here is a quick hit list for those of you with this question. Of course this list is not exhaustive, but solely intended to give you a short overview of the possible benefits to filing a consumer bankruptcy.
What CAN a consumer bankruptcy do? Some benefits may include:
- “discharge” (elimination of your obligations) of most of your consumer debts
- lower your periodic payments on some of your debts
- stop the garnishment of your wages
- stop harassment from debt collectors and stop other debt collection activities
- prevent termination of necessary utility services
- stop home foreclosure/allow you to cure a default
- stop automobile and some personal property repossession
What consumer bankruptcy CAN NOT do? When filing for consumer bankruptcy usually you can not:
- discharge debts that you incurred after filing for bankruptcy
- discharge most student loans
- discharge child support/alimony payments
- discharge criminal fines
- discharge taxes
- discharge the duties of those who have cosigned on your loans
- discharge the debt from certain secured creditors.
So, there is your five minute primmer. As I said, your individual circumstances will always determine whether consumer bankruptcy is the best course of action.
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