Filing a bankruptcy petition prevents your creditors from seizing your property to satisfy a judgment. If your wages or bank account have been garnished, or if the finance company is threatening to repossess your car, the creditor cannot take those actions after you file for bankruptcy protection. If your debt is what is known as an unsecured debt, such as credit card debt or medical expenses, your bankruptcy should eliminate that debt altogether.
You will still have to pay your car loan to keep your car or your mortgage to keep your house. Filing for bankruptcy will at least give you some breathing room to decide how to manage your debts. Fortunately, you can use Chapter 13 Bankruptcy to “catch up” on past due payments, even if your mortgage company or finance company is demanding full payment of everything you owe right now. You may even be able to get your car back if it was just recently repossessed.
Please feel free to call me to discuss whether bankruptcy is right for you.