If you are having trouble paying your debts, then bankruptcy is one option that should be considered. However, it is important to understand at the outset the kinds of relief that bankruptcy can provide.

What Bankruptcy Can Do:

• Eliminate the legal obligation to pay most debts
• Stop foreclosure on a home and allow an opportunity to cure a default
• Prevent reposession of an automobile, or require creditor to return a repossessed automobile
• Prevent termination of utility service, or restore service if it has already been terminated
• Lower monthly payments for some debts which are not eliminated

What Bankruptcy Cannot Do:

• Modify certain rights of secured creditors
• Eliminate some debts for child support, alimony, criminal penalties, and most taxes
• Eliminate debts incurred after bankruptcy has been filed