Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed. Restore or prevent termination of utility service. What Bankruptcy Cannot Do Bankruptcy cannot, however, cure every financial problem. Nor is it the right step for every individual.
Common examples are car loans and home mortgages.
You can force secured creditors to take payments over time in the bankruptcy process and bankruptcy can eliminate your obligation to pay any additional money if your property is taken. Nevertheless, you generally cannot keep the collateral unless you continue to pay the debt. Discharge types of debts singled out by the bankruptcy law for special treatment, such as child support, alimony, certain other debts related to divorce, most student loans, court restitution orders, criminal fines, and some taxes. Protect cosigners on your debts. When a relative or friend has co-signed a loan, and the consumer discharges the loan in bankruptcy, the cosigner may still have to repay all or part of the loan.