When you file for bankruptcy, you’re essentially telling the court that you cannot pay off your debts. Having a bankruptcy attorney assist you with filing is a must for helping this process go smoothly, in part because you’ll probably have have some questions. For example, you may wonder what exactly happens to your existing debts after you file. Are all of your debts automatically cleared when you file for bankruptcy? The Law Office of Tipton-Downie has some information to share on this subject.
- Are all your debts cleared when you file for bankruptcy? No. While some debts may be cancelled or payments put on hold, a bankruptcy attorney should tell you that filing doesn’t automatically clear every debt. When you declare bankruptcy, a court can rule that you must pay off certain debts. Specifically, bankruptcy doesn’t clear child support or alimony requirements, recent high-value purchases, student loans, or government taxes, penalties, or fines. Whether you file Chapter 7 or Chapter 13 also plays a part.
- How does filing for bankruptcy help me? Filing for bankruptcy can help you stop foreclosures, garnished wages, and/or repossession of property.
- What about creditors? After you file, your creditors must cease their attempts to collect payments from you for a brief period. Also, a creditor cannot sue you or contact you once you’ve declared bankruptcy.
When you’re in need of an experienced bankruptcy attorney to assist you with your case, call the Law Office of Tipton-Downie. Our lawyers near you in Vidalia, GA will help you with all aspects of bankruptcy law, helping you choose the best course of action for your case. Contact our bankruptcy lawyer today to learn more.