What Filing For Bankruptcy Achieves

Before filing, make sure you are aware of the debts that will be eliminated and which ones will be leftover for you to deal with.

By filing for Chapter 7 or Chapter 13, you can get rid of most of the credit card debt. At the same time, you’ll still be left with many types of debts including; child support, alimony, tax debts, and any secured debts.

Eliminate credit card debt and unsecured debts. If you have a pile for credit card debts, bankruptcy will help get rid of those as well. Credit card debt is one thing that bankruptcy is designed to help diminish. You might have other unsecured debts on top of credit card debt and bankruptcy will likely eliminate some of these as well.

Diminish harassment from creditors and debt collectors. Filing for bankruptcy can put an end to creditors harassing you about your outstanding debts. For example, if the creditor is taking serious action against you such as threatening to repossess your car or foreclose your mortgage, than filing for bankruptcy is probably the right action.

Bankruptcy in some cases can also eliminate some types of liens. A lien is the creditor’s right to take some or most of your property. The lien will survive bankruptcy unless you take certain measures.

Other debts that Bankruptcy can eliminate are:

Debts you forget to list in your bankruptcy papersPersonal injury debts Debts incurred from fines and other penalties