What Is Bankruptcy?

1 Minute Read

Bankruptcy is a process established by a set of federal laws that is designed to give debtors a "fresh start" by canceling many of their debts through an order of the court.

Bankruptcy also allows creditors who are owed money a chance to get their designated share of any money the debtors can afford to, or are obligated to, pay back.

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When a bankruptcy is filed, creditors have to stop any attempt to collect a debt, at least temporarily. There is usually immediate relief from creditor pressure, and a bankruptcy can stop a pending foreclosure sale of your home, a garnishment of your wages, or a threatened repossession. Most creditors cannot call, write or sue you after you have filed bankruptcy.

If you are in danger of bankruptcy contact one of Dave's trained financial coaches.

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