​​​​How Bankruptcy Can Help You:

 

 

 

Eliminate Debt - For many people, bankruptcy offers very powerful, real and tangible solutions to their financial problems.  If you have credit card debt, medical bills, personal loans, and other unsecured debts, a Chapter 7 bankruptcy can usually completely eliminate (“discharge”) those debts, and also restructure your car loan, and almost always allow you to keep all of your assets in the process – including your house, car and pension.  Even income taxes (both Federal and California) can be eliminated, in some circumstances. 

 

 

 

 

 

Get Caught up on your Mortgage - If you are behind on your mortgage payments, a Chapter 13 bankruptcy will give you up to 5 years to get caught up on your mortgage, with no interest accumulating during those 5 years.  A Chapter 13 bankruptcy can also eliminate all or most of your unsecured debt.

 

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Remove a 2nd or 3rd Mortgage from your House - A Chapter 13 bankruptcy can also allow you to “strip” a second and/or third mortgage lien from your house, in certain circumstances.  This can achieve some incredible results for you – allow you to remove the lien of a second or third mortgage from your house, and repay that mortgage lender just pennies on the dollar, over the life of your Chapter 13 plan. 

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Stop Creditor Harassment - Moreover, in both a Chapter 7 and a Chapter 13 bankruptcy, you can stop a foreclosure from going forward, and you can stop a car repossession.  You can also stop or prevent your salary from being garnished, and stop or prevent your bank account from being frozen by your creditors.  A bankruptcy will immediately stop all harassing phone calls, letters, lawsuits, and all other types of collection activities.  Once you file for bankruptcy, your creditors are not allowed to contact you, or try and collect from you in any way, shape or form.  Even a creditor with a judgment against you is not allowed to try and collect on that judgment.

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