When you are considering bankruptcy, you can find that there is a lot of misinformation out there about what bankruptcy can do for someone. Knowing what to expect from bankruptcy can be the way to determine if this is right for you.
The most common misconception is that bankruptcy will eliminate all of your debt, and you will still get to keep your car, home and other possessions without paying. This is not true. You can eliminate some of your debt, but there are secured creditors that will not be affected by your bankruptcy. This often includes loans for a home, or car. You will need to make arrangements to get caught up on your payments in order to keep possession of these large items.
If you accumulate any debt after the bankruptcy is complete, this debt will not be discharged. You will be completely responsible for any debt that you acquire after you file for bankruptcy. It can be very important to be careful after this process to keep your debt under control.
You will also be responsible for government type payments that you may be making. Student loans will not be discharged with a bankruptcy. You will also need to fulfill the obligations of your child support. Debts that are associated with divorce will also not be discharged, and this can include alimony payments. Criminal fines will need to be repaid and cannot be eliminated with bankruptcy. This will include any restitution, or other fines that are court ordered.
If you have a cosigner on a loan, this cosigner will not be affected by your bankruptcy. This cosigner can still be obligated to fulfill the requirements of this loan. If you have a specific debt that you are worried about, you can contact a lawyer to find out if this debt can be discharged with the use of bankruptcy.
There are many things that a bankruptcy can do for you. You will be able to have much of your debt discharged, and you will not be responsible for this debt in the future. You can also stop the foreclosure of your home, or repossession of your car. If you are experiencing wage garnishment, this can also be stopped. Bankruptcy can be used to give yourself a new start, and allow you to begin to take control of your debt in the future. Many people make bad choices at some point, and deserve a second chance.