| Home Page |
| Staff and Bios |
| Who We Serve |
| The Bankruptcy Process |
| Contact Us |
|
John F. Roberts, Esquire Jeanne E. Hovenden, Esquire
Serving all of the Greater Richmond, Virginia, Metropolitan and Tri-cities Area, and Surrounding Counties 7459 Old Hickory Drive Mechanicsville, Virginia 23111 (804) 746-4000 Richmond Area (800) 388-8298 Outside of Richmond Area (804) 746-4146 Facsimile |
The Bankruptcy Process
How Does Bankruptcy Help?
Bankruptcy can help a debtor in a number of ways. The filing of a bankruptcy case automatically stops most collection actions against the debtor, such as garnishments, foreclosures and lawsuits, at least temporarily. This allows the debtor to have a “breathing spell” during which the debtor has the opportunity to put his finances in order and chart his financial future. While the bankruptcy case is pending, creditors cannot pursue most actions against debtors without bankruptcy court approval.
The ultimate goal of a bankruptcy filing is to obtain a discharge from certain debts that arose prior to the bankruptcy filing. Once the discharge is obtained, creditors cannot pursue collection efforts against the debtor, and those claims are permanently forgiven unless a lien remains in place or the debtor has “reaffirmed” his obligations to the creditor. If a lien remains in place, the creditor can pursue the collateral securing the lien even after bankruptcy. If the debtor has reaffirmed a debt, then the creditor can pursue the debtor personally even after bankruptcy.
Bankruptcy also affords a debtor an opportunity to reject ongoing obligations under certain types of contracts, recover property or assets that were transferred or seized prior to the bankruptcy case and remove certain kinds of liens.