Bankruptcy can RESET your bills to $0

BEFORE BANKRUPTCY

Taylor's Bills:

• $5,000 on credit cards

• $25,000 in medical bills

• $6,000 in repossessions

• $2,000 on phone/cable/internet bills

• $800 on utilities

• Wage garnishment

Financial Situation:

• Taylor has a child and makes $53,000/year

• Bank account with $1,300

• Owns a 2008 Pontiac G6 free-and-clear, worth $4,000

• Purchasing a 2016 Chevy Impala, worth $19,000 and still owes $19,000

• Owns a house, worth $120,000, and owes $75,000 on the mortgage

AFTER BANKRUPTCY
 

Result of Chapter 7 Bankruptcy:

• RESET all debt to $0 without having to pay creditors

• KEPT $53,000/year job

• KEPT the 2008 Pontiac G6

• KEPT the $1,300 cash

• KEPT the house and the 2016 Chevy (as long as Taylor stays current on the payments, and continues to pay moving forward)

• STOPPED the wage garnishment