What is Bankruptcy
Bankruptcy is simply a process that was established by a set of federal laws, that are designed to give debtor's a "fresh start", by canceling many of their debts through an order of the court. Bankruptcy will also allow creditors a chance to get their designated shares of any money, that the debtor can afford to, or are obligated to, payback to the creditors.
When an individual files bankruptcy, the creditors must stop any attempts to collect the debts, at least temporarily. There is usually some immediate relief from creditor pressure, and bankruptcy can stop a pending foreclosure sale of your home, a garnishment of your wages, or a threatened repossession. During a bankruptcy, most creditors cannot call, write, or sue you after you have filed bankruptcy.
We urge people considering filing for Chapter 7 Bankruptcy relief to seek legal advice, as soon as you realize your debts are mounting, and you are not quite sure how you will be able to deal with them. The recession, unfortunately, brought too many bankruptcies around: acquaintances, neighbors, and friends may have filed for bankruptcy that you know of, but we caution to use them as a source of information. Everyone’s financial situation is different, but only an attorney will be able to assess your situation and give you the best advice.