Filing Bankruptcy Does The Following:
- It stops the collection of lawsuits, personal loans, and tax liens.
- It eliminates credit card debt and IRS debt of more than 2 years. During this process, you will stop collecting lawsuits and personal loans.
- It stops wage garnishment, foreclosure, any kind of repossession of property.
How Does Declaring Bankruptcy Work?
What You Need To Know Before Declaring Bankruptcy
If you declare bankruptcy, you should know if your income is higher or lower than the limit set by the court. Income limits vary according to the place of filing and size of the household. You will also be required to disclose all your assets, income, debts, and liabilities.
After you have completed all the necessary documents and filed for bankruptcy, you need to confirm if you have successfully listed all your debts, assets, and liabilities. The court will assign a trustee to you to make sure that full disclosure has occurred. The trustee is also the person that reviews a payment plan that will be easy for you to return some debts.