What are the advantages of bankruptcy?
First and foremost, all of your debts will be discharged. This means that your creditors will not be able to continue to collect on the debts you are claiming. They will not be able to call you about past due payments, garnish your wages or continue a lawsuit. Quite simply, they will never be able to get any money from you regarding the debts which you owed them.
Also, if you have a secured debt such as a car loan or furniture loan with a high interest rate, we may be able to restructure that debt and lower your interest rate and monthly payments. In some instances, we may be able to lower the amount that you owe them. If you have a mortgage that you are behind on and facing foreclosure or property tax forfeiture, filing for Bankruptcy under Chapter 13 can restructure those debts and prevent you from losing your home.