Bankruptcy can prevent future judgment liens. It usually stops a lawsuit from turning into a judgment, and then a judgment lien on your home.
What happens if you list a creditor in your bankruptcy case but, unknown to you, it sold the debt to a collection agency that you don't list?
Usually if you don'='t list a debt, it doesn't get discharged. An exception is if the creditor still learns about your case, on time.
A "preference" makes more sense when you see an example. Here's one. This also helps explain how to avoid creating one.
Getting sued by a creditor is a wake-up call to consider filing bankruptcy. If it's the right thing to do, there are advantages to filing before your deadline to respond to the lawsuit.
If you want to hold onto your vehicle, or other collateral, Chapter 13 makes it happen.
Bankruptcy court is a relatively efficient place to determine whether or not you must pay a debt which the creditor says can't be discharged.
The point of filing bankruptcy is to get relief from your debts. So, when and how DO those debts get "discharged"--legally written off--in a regular Chapter 7 bankruptcy?
Getting a lawsuit filed against you by a creditor starts a very fast-ticking alarm clock. Don't hit the snooze button on this one.
Chapter 7 protects you and your assets with the automatic stay. Chapter 13 goes a big step further by also protecting your co-signers and their assets.