If you are wondering if bankruptcy is the right option for your finances, it may help to review how filing has helped millions deal with their finances. There are advantages to filing that has helped debtors get back on track and gain financial freedom to move forward with their lives. The following points may include goals you want to achieve. If they are, you may want to learn how bankruptcy can help you achieve it.
Debt elimination. You can discharge qualifying debt (unsecured such as credit cards, medical bills, etc.) through Chapter 7 bankruptcy. In many cases, you can eliminate unsecured debt at the end of Chapter 13 bankruptcy.
Stop or prevent legal action against you from creditors. The automatic stay in bankruptcy goes into effect as soon you file. Actions such as repossession, foreclosure, utility disconnection, and pending lawsuits are ceased or stopped. Utility service can be restored if it has been disconnected.
Help you keep property you want to keep such as a vehicle or house. You can get caught up on missed payments based on what you can afford.
Get you lower monthly payments on certain secured debts. For instance, a car loan principal amount may be reduced if the vehicle is worth less than the original loan amount.
Get caught up with back income taxes. In Chapter 13 bankruptcy you may be able to make payments on your taxes without paying penalties.
Stop harassing collection attempts. Other legal actions such as wage garnishment can also be stopped.
Stop creditors who may be trying to get more from you than what you really owe. You can challenge any claims you feel you don’t owe or feel you may be taken advantage of.
Reference: http://www.nclc.org/images/pdf/older_consumers/consumer_facts/cf_what_you_should_know_about_bankruptcy.pdf