What does it accomplish?
The majority, if not all, of a person's debts can be discharged if they file for total bankruptcy or any form of bankruptcy for that matter. As soon as the debt is discharged, the debtor has no legal obligation regarding the debt.
Total bankruptcy and other forms of bankruptcy can halt foreclosure proceedings. Nobody wants to give up their home without a fight, and bankruptcy can help people keep their homes despite their debt by allowing them to catch up on their missed payments based on their capacity to pay.
Additionally, bankruptcy can prevent repossessions. Therefore, filing for bankruptcy protects your vehicle and other property. In cases where repossession has already occurred, bankruptcy law can compel the repossessor to return the repossessed property to you.
Insolvency can put an end to various forms of harassment caused by debt collection, including wage garnishment.
If utility services such as electricity, telephone, and the like were terminated prior to the filing of a complete bankruptcy, they can be reinstated. In situations where it has not yet been disconnected, its prevention is most likely to occur.
The instant a person declares bankruptcy, interest rates and monthly payments will be significantly reduced. These include auto loans and other secured obligations.
7. Another aspect of total bankruptcy and its variants is that debtors have the opportunity to contest the claims of creditors they believe are unjustly accusing them of debts or are charging more than they actually owed.
" - https://www.affordablecebu.com/