How Bankruptcy Affects Individuals (Part One) By Michael Vereen

1. How Bankruptcy Affects
Individuals (Part One)
By Michael Vereen

2. Bankruptcy is the legal process of canceling debts
in order to provide a new beginning for an
individual or a company. When starting the
process of filing for bankruptcy, you might wish to
consider the following:

3. Bankruptcy Does Not Erase Everything
Certain debts are not covered under bankruptcy,
and those who file for bankruptcy are still
obligated to pay them. The most common
obligations that cannot be discharged are child
support payments, alimony, tax payments, and
student loans. Filing for bankruptcy may also not
stop your landlord from evicting you, either.

4. Bankruptcy Hurts Your Credit
A declaration of bankruptcy may remain on your
credit report for up to 10 years (per the Fair Credit
Reporting Act.) This will affect your ability to take
out additional loans; you will likely be charged
high interest rates.

5. Immediate Relief Will Help You Rebuild
Though there are disadvantages to declaring bankruptcy,
it may be the best course of action because the short-
term relief from debt can offer the chance to repair
finances. Incessant calls and threats from collection
agencies are a source of great stress for debtors, but
once bankruptcy has been approved, they will cease, at
least temporarily. Debt collectors may not pursue legal
action, correspond in writing, or make telephone calls
regarding debts once you have declared bankruptcy.
Pending foreclosure of property may be interrupted, your
wages will cease to be garnished, and repossession will
no longer be an impending threat.

6. The process of bankruptcy is complicated, but the
relief can make an enormous difference in
rebuilding your life and financial standing. In the
second part of this article, we’ll provide more tips
regarding bankruptcy.

7. About Michael Vereen: An attorney with 25 years
of experience in bankruptcy law and criminal law,
Mr. Vereen practices in Cherokee, Forsyth, and
Cobb counties in Georgia. He prides himself on
personal attention and integrity when handling
cases. Mr. Vereen can be contacted at (770)345-
9449 or www.vereenlaw.com.