When you can’t pay your debts, your creditors can take legal action against you to recover the money you owe. Your creditors will often file a lawsuit against you. If your creditor obtains a judgment against you they will be able to take action to enforce that judgment. This can include wage garnishments or seizing money from bank accounts. 

Lenders commonly ask for a co-signer. A co-signer is someone who agrees to be legally responsible for repaying a debt if the primary borrower defaults. A co-signer takes on equal responsibility for the loan, this means they are obligated to make payments if the primary borrower cannot. Common examples are parents co-signing for their children’s student loans or auto loans, or a friend co-signing a lease. 

If you are considering filing for bankruptcy, you may be wondering if your assets and property will be protected. If you have a health savings account (HSA), you may be wondering whether or not you will be able to keep those funds. 

Whether you file a chapter 7 or a chapter 13 bankruptcy you will be required to attend a 341 Meeting or meeting of the creditors. This is a 5-10 minute meeting with the bankruptcy trustee and an attorney will be there with you. It is called a meeting of the creditors but few creditors actually attend the meeting. Most of the time individuals can expect that no creditors will be present. 

You may be wondering if you will ever be able to purchase a home after filing for bankruptcy. Many people believe that they will never qualify to purchase a home after filing a bankruptcy. However, this simply isn’t true. After filing you can own a home, purchase a new car, or obtain credit if you wish to do so. 

One of the most common myths surrounding bankruptcy is that it is harmful for everyone involved. People often associate bankruptcy with irresponsibility and dishonesty. Many people assume that bankruptcy causes widespread harm for individuals and creditors. While there can be bad actors on both sides, this is generally not the case. 

There are some topics you simply don’t want to discuss with your employer. Bankruptcy is often one of them. A common concern for those considering filing bankruptcy is whether their employer will receive notice they have filed. 

Wage garnishments are one of the common reasons individuals decide to file bankruptcy. Wage garnishment is a process where a portion of your wages are withheld by your employer to pay off your debts. Wage garnishments can occur for different reasons such as unpaid debts like credit cards, personal loans, or child support.