Bankruptcy makes it possible to:

  • Get rid of the obligation as per law to pay all or most of the debts. This is referred to as a `discharge’ of the debts and it is meant to give you a new financial start (see Bankruptcy – Texas exemptions).

  • Prevent the foreclosure on the place of your residence to allow you another chance of catching up on your missed payments. You will have to remember that bankruptcy will not be able to automatically eliminate all mortgages or liens on your house or any other property until you make all the overdue payments.

  • Stop your property or your car being repossessed. The creditor will have to return your property to you even if he or she has repossessed it, once you have been declared legally bankrupt.

  • Hold back all wage garnishments and all similar actions by the creditor to collect his or her debts. You will not be harassed any further towards debt collection.

  • Prevent any act that suggests the termination of utility services at your house. Utility services can be restored once you are legally declared bankrupt.

  • Enable you to dispute the claims of your creditors who may have committed fraud or who may be attempting to collect more than the amounts you actually owe them.