Filing for bankruptcy is not a crime Credit card companies wish it was, but it’s not. You cannot be arrested for filing for bankruptcy. You will not be frisked, cuffed, and thrown into debtor’s prison. Likewise, your home will not be searched.
Through a Chapter 7, most of your debts will be discharged. Credit cards, medical bills, utility bills, deficiency balances on car loans, and many more are completely discharged. Student loans will not be discharged except in rare circumstances, and neither will alimony, child support, and recent tax debt.
Before looking into the specifics of tax refunds, keep in mind that 97% of bankruptcy cases are 'no asset cases.' This means that the filer gets to keep all of their things and the trustee takes nothing.
Yes. Health care can be very costly. Hospital charges and doctor’s fees add up quickly, for procedures of all kinds, whether performed as outpatient services or more complicated procedures requiring a hospital stay.
There is a stigma attached to bankruptcy that sometimes deters individuals from persuing it. Bankruptcy is not a bad word- bankruptcy is a forgiveness of debt that has been around since biblical times. We should not be ashamed that we sometimes dig ourselves too deep- we are human and we deserve a fresh financial start.
At Seelinger Law, we believe that you should find out your options. We believe that bankruptcy is a way out, a way to a fresh financial start just as Congress intended, not the nasty “B” word that creditors would have you believe.
Debt consolidation companies tell you that they can make deals with the banks and settle your credit card debts. Understand that they start taking your money even before they make any contact with the banks. There is absolutely no guarantee that the banks will take their offer.