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Bankruptcy Bankruptcy is a federal court process that was designed to allow consumers to repay or eliminate their debts under the protection of the bankruptcy court. There are two types of bankruptcy that can generally be described as "liquidation" (Chapter 7) or "reorganization" (Chapter 13). With Chapter 7 bankruptcy, you as the consumer asks the bankruptcy court to clear (discharge) the debts you owe. With Chapter 13 bankruptcy, you create a plan with the bankruptcy court that outlines how you will repay your creditors. Some debts must be repaid in full; others may be repaid only partially or not at all, depending on what you can afford. As a consumer, when you file for bankruptcy, an "automatic stay" goes into effect protecting you from creditors taking action and trying to collect on the debt that you owe. However, the bankruptcy court does have the power to lift the stay and let the creditor proceed with collections. There are certain types of debts that cannot be discharged in a bankruptcy filing and you will continue to owe them just as if you had never filed for bankruptcy. These debts include alimony, child support, and certain kinds of tax debts and student loans. Contact a bankruptcy attorney today for help in understanding your situation and guidance in filing for bankrupty.

Bankruptcy

Bankruptcy is a federal court process that was designed to allow consumers to repay or eliminate their debts under the protection of the bankruptcy court. There are two types of bankruptcy that can generally be described as "liquidation" (Chapter 7) or "reorganization" (Chapter 13). With Chapter 7 bankruptcy, you as the consumer asks the bankruptcy court to clear (discharge) the debts you owe. With Chapter 13 bankruptcy, you create a plan with the bankruptcy court that outlines how you will repay your creditors. Some debts must be repaid in full; others may be repaid only partially or not at all, depending on what you can afford.

As a consumer, when you file for bankruptcy, an "automatic stay" goes into effect protecting you from creditors taking action and trying to collect on the debt that you owe. However, the bankruptcy court does have the power to lift the stay and let the creditor proceed with collections.

There are certain types of debts that cannot be discharged in a bankruptcy filing and you will continue to owe them just as if you had never filed for bankruptcy. These debts include alimony, child support, and certain kinds of tax debts and student loans. Contact a bankruptcy attorney today for help in understanding your situation and guidance in filing for bankrupty.