Why File for Bankruptcy?
The filing of petition in Bankruptcy instantaneously stops all foreclosure action, all lawsuits, all garnishments, all tax collection, and all other action by creditors such as phone calls and harassment immediately BY FEDERAL LAW!
The Chapter 7 and Chapter 13 filing will also eliminate most debt including credit cards, medical bills, repossessions, foreclosures, and some taxes, if approved. These Chapters, as later explained, can save your home or business.
Bankruptcy has developed a stigma or reputation as of “admitting failure”. In fact, this is a relief primarily created by creditors to keep people from filing and is not true. Bankruptcy relief is an original part of our U.S. Constitution (Art. 1, sec.8) and allows relief from debt where the Federal Courts feel it is appropriate. This will be determined by your ability to repay your debts (the Means Test), and will be based on information contained in a petition filed with the U.S. Federal Court Systems. Generally, your experienced bankruptcy attorney will be able to tell you if your bankruptcy petition will be approved before you file based on the “means test”, and other personal financial information going back three (3) years.