Bankruptcy may make it possible for you to:

  • Eliminate the legal obligation to pay most or all of your debts. This is called a ”discharge” of debts. It is designed to give you a fresh financial start.
  • Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. (Bankruptcy does not, however, automatically eliminate mortgages and other liens on your property without payment.)
  • Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.
  • Modify your car loan or other secured loans (except mortgages on your principal residence) to lower the interest rate, change the length of the loan, and, in some instances, reduce the principal.
  • Stop wage garnishment (sometimes we can recover recently garnished money), debt collection harassment, and similar creditor actions to collect a debt. Restore or prevent termination of utility service.
  • Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than you really owe.
  • Sue creditors for violations of bankruptcy rules once the case is filed.