What Bankruptcy Can and Cannot Do

Chico Bankruptcy Attorney – Helpful, Reliable Advice on Bankruptcy

Even though bankruptcy is a powerful tool for debtors to find relief, some types of debt can't be wiped out in bankruptcy. Credit card debts are easily eliminated through a bankruptcy claim, but other debts such as child support, student loans, alimony and secured debts are not so easily erased. When you are looking for debt relief, a knowledgeable Chico bankruptcy lawyer from Baker & Farris, Attorneys at Law can provide you with specialized legal counsel you need to face your future with hope.

What Bankruptcy Can Do

If you are facing serious debt problems, bankruptcy may offer a powerful remedy. Bankruptcy is an excellent tool for wiping out credit card debt as long as the debt is not from a special "secured" credit card. With unsecured debt, the creditor does not have a hold on any of your property and cannot repossess any items if you fail to pay the debt. Depending on the type of bankruptcy that you file for, you may have to pay back a portion of your unsecured debts but these will be completely discharged once the repayment plan is completed.

Bankruptcy is particularly useful for stopping creditor harassment such as nonstop phone calls, unannounced visits and more. Filing for bankruptcy will put an immediate end to creditor harassment and any pending lawsuits that creditors have filed against you.

What Bankruptcy Can't Do

Bankruptcy is not the right form of debt relief for everyone. Even though bankruptcy allows you to eliminate various debts, but it does not eliminate liens. Bankruptcy will not prevent a creditor from repossessing the property that is attached to a secured debt that you owe. If you owe child support and alimony payments, you will continue to owe those debts in full even after you have filed for bankruptcy. These debts must be paid in full through a repayment plan if you choose to file for Chapter 13.

Many people do not realize that bankruptcy does not discharge any student loans unless you are able to show that repaying the loan would cause you "undue hardship". This is very difficult to prove even with the help of a skilled attorney, and the majority of bankruptcies do not include this provision. Bankruptcy does not eliminate most tax debts, although it is sometimes possible for to discharge older debts for unpaid income taxes. Our firm can help you determine which debts will qualify under the certain types of bankruptcy so that you can be fully informed before you make a decision.

Contact a Chico Bankruptcy Lawyer for Help

Here at Baker & Farris, Attorneys at Law, we understand the challenging nature of stressful financial situations and we are here to help. From guiding you to the right form of debt relief to assisting you throughout the entire process, our legal team will help you achieve a favorable outcome and a fresh financial start.

Contact a Chico bankruptcy lawyer at our firm today!