What Bankruptcy Does

Bankruptcy can remove debt, save property from being taken by creditors, and much more.

Bankruptcy can 'put things right'. Image of man doing a summersault on a beach where he has written 2011.

Bankruptcy takes your entire financal situation and puts it under the protection of the federal bankruptcy court. 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.


Stop wage garnishment, 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.


Pay debts over a longer period of time that originally planned.


But, what bankruptcy really does is give you the peace of mind that you are no longer under a heavy debt load that you can't afford and that in 2011 you took control of your financial life and put things right for you and your family.

What Bankruptcy Can Do
  • Bill collector calls and letters stop. We deal with your creditors, not you.
  • Home foreclosure is halted. Stay in your house with the full protection of the federal court.
  • Garnishment from your paycheck sent to creditors is blocked. We may even get some of that money back.
  • Reposession of your car, truck, boat, or other property is stopped. Keep your property while we work out a plan.
  • Debt relief is immediate. Stop paying creditors until a repayment plan is approved.
  • Discharge your debt. All or part of your debts can be gone forever.
  • Fresh start without the heavy buden of old bills.