Bankruptcy: Is It the Right Choice for You?
Individuals who require protection from creditors may be able to file for personal consumer bankruptcy under two provisions of the U.S. Bankruptcy Code: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Bankruptcy Law Professionals of Colorado is a Denver law firm specializing in these two types of bankruptcy filings.
What Bankruptcy Can Do for You
If you cannot now pay your bills, bankruptcy can provide a fresh financial start. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until they are sorted out according to the law. Depending upon the type of bankruptcy used, the law allows you to:
- Eliminate the legal obligation to pay most or all of your debts. This is called a “discharge” of debts.
- Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments.
- Prevent repossession of a car or other property, or force the creditor to return property even after is has been repossessed.
- Stop wage garnishment, harassment by debt collectors, and similar debt collection actions.
- Restore or prevent termination of utility service.
- Allow you to challenge creditors who are trying to collect more than you really owe them.
For most people, bankruptcy does not require that you “lose everything.” In fact, most will lose nothing. And, in the future, a bankruptcy will not prevent you from buying anything you can afford.