As per Lawkidunya, Bankruptcy doesn’t cure all debt problems. Here’s what it can’t do for you. Prevent a secured creditor from foreclosing or repossessing property you can’t afford. simple example about this, if you file for Chapter 7 bankruptcy, you can wipe out a home mortgage; however, the lender’s lien will remain on the home.
Do you Lose House in Bankruptcy?
The bankruptcy trustee handling your case is obligated to sell off any non-exempt assets to pay off creditors. Even with the automatic stay associated with filing for bankruptcy, if you are not able to cure the amount you owe on the mortgage, you can lose the home.
Is Bankruptcy a Solution to Debt Problems?
It is no surprise that the purpose behind filing bankruptcy is to eliminate debt. Chapter 7 bankruptcy is particularly good at eliminating unsecured credit card/medical bill type of debts.
Can you Claim Bankruptcy on just Credit Cards?
Filing for bankruptcy is not a decision that should be taken lightly. If you are struggling with credit card debt, whether it is in your best interest to stop making payments and file for bankruptcy depends on: whether you are being sued or harassed by debt collectors, and. the amount of nonexempt property you own.
Can I File Bankruptcy on Medical Bills only?
Fortunately, medical debt is not one of them. In bankruptcy, medical bills are considered general unsecured debts just like your credit cards. This means that medical bills don’t receive priority treatment and can easily be wiped out by filing for bankruptcy.