What is Bankruptcy and What Can it Do For Me?

Posted by Daniel A. Testa III | Oct 08, 2018 | 0 Comments

Bankruptcy… it is a word that we have all heard, but there can be many misconceptions about what it actually is. Bankruptcy is not like the game of Monopoly, it is not the end game for you. Bankruptcy in real life is your chance for a fresh start.

There can be a stigma associated with Bankruptcy, but the truth is that over a million people file for Bankruptcy each year in the United States. Many file to get out from under crippling medical debt, others might file due to changes in life circumstances or simply because they took on more debt than they can handle. The important thing to remember is that you are not alone and more people file than you might realize. Bankruptcy cases are handled in federal court under rules outlined in the U.S. Bankruptcy code which means every United States citizen has the right to file for Bankruptcy protection regardless of your state as long as you qualify.


Bankruptcy can be defined as a legal proceeding which will give a person who can not pay all of their bills a fresh financial start by liquidating assets to repay their debts or by creating a repayment plan. Your household size and income will determine what type of Bankruptcy you qualify for. Bankruptcy will not ruin your life, in fact it will help you get out from a mountain of bills (and stress) and allow you to rebuild.


Bankruptcy can give you powerful protection from your creditors, some of the things that Bankruptcy can do for you are:

  1. Give you a fresh financial start by eliminating your obligation to pay most or all of your debts (referred to as a “discharge” of debts);
  2. STOP foreclosure on your home and allow an opportunity for you to catch up on missed payments (however it does not automatically eliminate secured liens, you should look to your attorney for further explanation);
  3. PREVENT repossession of a car or other property, or even force a creditor to return repossessed property;
  4. STOP harassment from debt collectors;
  5. STOP wage garnishment and other creditor actions to collect debt;
  6. Restore or prevent termination of utility services; and
  7. Void judgment liens from Real Property.

You are entitled to a fresh start under the bankruptcy code. It is important to have an experienced attorney review your case. Your attorney will meet with you and review your current financial situation to discern whether filing for Bankruptcy would be in your best interest. Bankruptcy may not be right for everyone, it is dependent on your individual situation.  Call our office today at 315-255-3368 to set up your free consultation and see if you qualify for Bankruptcy protection and whether Bankruptcy is the right solution for you.

This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact an attorney directly. 

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About the Author

Daniel A. Testa III

Daniel graduated from Union Springs High School in 1992. He graduated from the University at Albany in 1998 with a B.A. in public policy and a minor in public administration; he received his Juris Doctor from the University of Buffalo Schoo...


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As an Auburn, NY native, and an active member in the community, Testa Law Firm practitioner Daniel A. Testa III believes that it should be a priority to make the community that we live and work in better. From being a member on the Union Springs school board to sponsoring a travel baseball team, he exemplifies a genuine love for our community that extends outside of his excellent representation.

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