What Does Bankruptcy Cover? – Michelle

“Dear Lewis,

I have messed up my checking account couple of months ago by $300.00 which in turn had additional fees of NSF of $360.00; needless to say, fell behind on LOTS of bills and credit card payments…feels like I am drowning right now…

What does Bankruptcy cover?? Is it just unsecured debt that is erased~such as credit cards and nothing that is secured like the mortgage payment or car payment???

Thanks so much,


Dear Michelle,

Bankruptcy can also take care of secured debts as well.

If you have decided to give up the home and/or the car, you can “surrender” these items in the bankruptcy.

The car will likely be picked up quickly by the lender.

The house, depending on what state you live in, could take months or years before the lender finishes a foreclosure and takes the home back.

Please speak to a bankruptcy attorney regarding the best way to plan your filing so that you can maximize the time in your home.

The bankruptcy can also take care of the overdraft fees at the bank account! Make sure you start banking at a new bank now – one you don’t owe any money to.

Good luck!

My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.

Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.

If you have a bankruptcy question you’d like to ask just use the online form.

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