People who use the bankruptcy laws most successfully are generally those with the best attitudes and the proper perspectives. As one writer asked, "Is the glass half empty, half full, or twice as large as it needs to be?" Bankruptcy can be a negative, a positive, or simply the right response to your financial problem.
The bankruptcy process can have many positive results for a person with the right perspective. Below are a few examples:
1. Bankruptcy generally discharges most or all of your unsecured debts, such as medical bills or credit card balances. Once your debt is discharged, you are no longer under a legal obligation to pay.
2. Bankruptcy immediately and automatically stops all collection action, and provides time to reorganize your finances. This "automatic stay" applies to lawsuits, foreclosures, garnishments, pending repossessions, telephone harassment, etc. In some cases a bankruptcy filing may even force a creditor to return a repossessed vehicle.
3. A bankruptcy filing also prevents a utility company from turning off your gas or electric services. If these necessary services have been cut off, the bankruptcy requires the utility company to restore service.
4. If you are behind on mortgage payments, the bankruptcy will allow you time to catch up.
5. In many cases it can fix an upside down auto loan. You may save hundreds of dollars each month in payments and keep your vehicle.
6. The protections afforded by the federal bankruptcy laws can shift the balance of power from the creditor back to you. Creditors must prove claims and seek permission from the bankruptcy court before collecting.
If you are buried in debt and need professional help, consult with an experienced bankruptcy attorney to learn your options. The federal bankruptcy laws may be exactly the right tool to correct your financial problem.