The primary purposes of the law of bankruptcy are to give an honest debtor a “fresh start” in life by relieving the debtor of most debts, and to repay creditors in an orderly manner to the extent that the debtor has property available for payment. Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation. Bankruptcy can wipe out credit card and other unsecured debt, and stop creditors from harassing you, stop wage garnishments, and prevent your bank account from being seized. Bankruptcy cannot prevent a creditor from repossessing secured property, like a car loan or your home mortgage, nor can it wipe out most tax debts, child support and alimony payments. Bankruptcy can eliminate student loans only if you can prove “undue hardship,” a very tough standard. Depending on your unique situation, bankruptcy may require that you liquidate some assets to pay your debts, or it may require that you create a repayment plan. Deciding whether or not to file bankruptcy is a difficult decision. Ask a lawyer at Phillips Law Firm, Inc. if filing for bankruptcy protection is the best way for you to get out of debt and get your life back. When bankruptcy is appropriate for an individual, we help you decide between the two types of bankruptcy: the familiar “liquidation” bankruptcy, where your debts are wiped out (Chapter 7 bankruptcy) and “reorganization” bankruptcy, where you partially or fully repay your debts (Chapter 13 bankruptcy). We help you make an informed decision about filing bankruptcy by assessing your financial situation, and then we guide you through the correct bankruptcy process for your situation. If bankruptcy is not right for you, you may still benefit from our Debt Settlement process.