If you are having problems paying for your bills, face wage garnishments or repossession, often filing for bankruptcy is the right option. The option to file for bankruptcy was created by the government to help assist people who face such difficulties. Below you will find additional information before you make your final decision.

Bankruptcy is a way to temporarily suspend and later prevent all debt collection actions you had at the time you filed for bankruptcy protection.

Once you file for bankruptcy, the federal court will grant an automatic suspension of any debt. This prevents creditors from attempting to collect on any outstanding debts. Creditors in turn may petition the court for relief from the automatic debt suspension. Often those creditors whose loans are secured by a property or other collateral are permitted to take possession of that property.

Bankruptcy may do the following for you:

• Eliminate the legal duty to pay most or all of your debts. This is called a "discharge" of debts. Allowing you to receive a fresh financial start.
• Stop foreclosure or repossession of your car or other property so you can catch up on missed payments. In most cases where a property is involved, you will need to choose between continuing to make payments or giving the property back. Bankruptcy will not eliminate a lease, mortgage or car loan and let you keep the property at the same time.
• Stop wage attachments, debt collection harassment, and similar creditor related actions to collect debt.
• Allow you to challenge creditors who have committed fraud or who are otherwise trying to collect more debt than you currently owe.

Bankruptcy can't fix every financial problem and it may not be the right step for everyone. In bankruptcy court, it is usually not possible to:

• Eliminate certain “secured” obligations to creditors. A “secured” creditor is usually a creditor that can take something if the debt is not paid as agreed by you. Common example may include car loans and home mortgages. You can force secured creditors to take payments over time in the bankruptcy case process. Bankruptcy can prevent you from paying more money if your property is taken. You generally will not be able to keep the collateral (house or car) if you do not continue to make payments.
• Discharge any debt 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 any co-signers on your debts. If a relative or a friend has co-signed a loan for you, and you discharge the loan in bankruptcy, the co-signer may still be obligated to repay all or part of the loan.
• Discharge any debts that arise after filing for bankruptcy.

• Chaper 7
• Chaper 13

In most bankruptcy cases, you may only need to go to a bankruptcy proceeding called the “meeting of creditors.” This meeting allows you to meet with the bankruptcy trustee and any creditors who may choose to come. Most of the time, you will only be asked simple questions about your bankruptcy forms and your financial situation.

The process of filing for bankruptcy is difficult and you may lose property and/or other rights if you are not familiar with the law. Now more than ever, filing bankruptcy takes careful planning and preparation. Although you can file for bankruptcy without a lawyer, it is not recommended since your property and future is at stake. Contact the professionals at Janian & Associates and receive your free case evaluation today!