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Consumer Bankruptcy

Bankruptcy is a legal proceeding that allows an individual who is unable to pay his bills to get a fresh financial start. The codes seek to balance the rights of the creditor to get paid and aiding the financially distressed consumer seeking relief. Since 2005 a "means test" was added to the laws to ensure debtors with the ability to repay be required to pay some or all of their debts. Full disclosure of financial information is required before bankruptcy relief.

Bankruptcy may make it possible for you to:

  • Eliminate legal obligation to pay most or all debts. This is called "discharge" of debts.
  • Stop foreclosure on your house/mobile home and allow opportunity for you to catch up. Bankruptcy does not automatically eliminate mortgages and other liens on your property without payment.
  • Prevent repossession of a car or other property.
  • Bankruptcy cannot, however, cure every financial problem. Nor is it the right step for every individual. Please consider other alternatives before seeking bankruptcy relief. Educate yourself on the process.


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