Bankruptcy Benefits

: Reese Baker & Associates

  Filed under: bankruptcy

Bankruptcy is not for every financial hardship, but for some, it can legally eliminate many of your debts. At the end of your case, your debt will be discharged, giving you a fresh start.

When you file for bankruptcy, an automatic stay goes into effect as soon as you submit the paperwork to the court. This means creditors will have to legally stop all efforts to contact you or collect on a debt.

Evictions and Foreclosures

Bankruptcy can stop foreclosure on your home, giving you will have the opportunity to catch up on any missed payments or you can choose to give up your home back to the mortgage company. If you plan on keeping your home, you will have to continue to make payments to your mortgage company. Bankruptcy can stop the eviction process or utility shut offs. Your utility services will be restored if they were already terminated.

Wage Garnishments

Bankruptcy will stop wage garnishments, those already in place, and impending garnishments. During your bankruptcy process, you can either eliminate the debt that caused the garnishment or be given time to catch up on the payments. However, if your garnishment is due to child support or alimony, it will not be eliminated in bankruptcy.


Bankruptcy will stop your vehicle from being repossessed. If your car was recently repossessed, the creditor would have to return the property to you. Again, if you plan on keeping the vehicle, you will have to continue to make the payments.

Some of your debts, such as car loans can be lowered in the bankruptcy process. You can also challenge the claims of creditors seeking to collect more money from you than you actually owe.

If you are consumed in debt and considering bankruptcy, contact a Houston bankruptcy attorney to discuss what options you may have to get a fresh financial start.