Filing bankruptcy is not a step to be taken lightly. Yes a debtor may file without an attorney but the process is difficult and their is a risk of losing property.
Bankruptcy can help you:
- Eliminate legal obligations to pay debts, giving you a fresh financial start.
- Stop foreclosure on your home temporarily to allow you an opportunity to catch up on missed payments
- Prevent repossession of a car or any other property.
- Stop wage garnishment, debt collection harassment, and other creditor actions to collect a debt
Bankruptcy cannot help you:
- Eliminate rights of “secured” creditors.
- Discharged certain debts such as: child support, alimony, most student loans, court restitution orders, criminal fines, and most taxes.
- protect co-signers
- discharge debts arising after a bankruptcy has been filed
In chapter 7 bankruptcy, a trustee, appointed by the Bankruptcy court and U.S. Trustee’s office, will take your unexempt assets and distribute the money to your creditors.
A bankruptcy can appear on your creditor report for 10 years from the date your case was filed.