
In a perfect world, no one would ever have to file for bankruptcy. And while no one wants to file, this constitutionally protected right often provides a path out of crushing debt and the stress that accompanies it.
Bankruptcy may help you:
- Eliminate Debt – Eliminate the legal obligation to pay most or all of your debts. This is called a discharge of debts, a court order signed by a Federal Bankruptcy Judge designed to give you a fresh financial start.
- Save Your Home – Stop foreclosure on your house or mobile home and allow individuals an opportunity to catch up on missed payments.
- Protect Your Car and Property – Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.
- End Harassment – Stop wage garnishment, debt collection harassment, and similar creditor actions.
- Keep the Lights On – Restore or prevent termination of utility service.
- Challenge Claims – Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than you really owe
Bankruptcy is not a cure-all for every financial issue, and it’s not the right step for every individual.
It usually does NOT:
- Eliminate certain rights of secured creditors, which is a creditor that has taken a mortgage or other liens on property as collateral for the loan. Secured creditors can be forced to take payments over time in the bankruptcy process.
- Wipe out 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 types of debts singled out by the bankruptcy law for special treatment, such as child support, alimony, certain other debts related to divorce, most student loans, court restitution orders, criminal fines, and some taxes.
- Protect co-signers on your debts. When a relative or friend has co-signed a loan, and the consumer discharges the loan in bankruptcy, the cosigner may still have to repay all or part of the loan.
- Discharge debts that arise after bankruptcy has been filed.
Meet Chad Van Horn, founding partner and attorney of Van Horn Law Group, P.A.
Chad Van Horn, founding partner and attorney of Van Horn Law Group, P.A., runs the largest bankruptcy firm in Broward County based on the number of cases filed in the last 12 months. He is the author of Everything You Need to Know About Bankruptcy in Florida, available for no charge at http://freebankruptcybook.com.
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