People turn to bankruptcy when creditor harassment becomes unbearable, when their home is about to be foreclosed or car repossessed, when lawsuits or wage garnishments are threatening, or when debt payments overwhelm their income so they cannot properly feed and clothe themselves or their families. By filing bankruptcy, they achieve a fresh financial start in their lives. If you feel that bankruptcy can help, consider filing your bankruptcy before creditors are actually taking you to court or putting a garnishment on your wages. That will allow time for better bankruptcy planning and preparation. The automatic stay provisions of the Bankruptcy Code require an immediate stop to all collection efforts by your creditors once your bankruptcy has been filed.
Bankruptcy stops phone calls, letters, lawsuits and foreclosures.
Bankruptcy also stops garnishments on your wages, other than for child support or alimony. Otherwise, creditors may sue your spouse and attach jointly owned property. There is no extra charge for a joint bankruptcy. Bankruptcy is designed to give a fresh start in life to honest people who have more debts than they can handle. Running up debts just before bankruptcy may cause those debts not to be discharged.