Most people do not set out to file bankruptcy, but sometimes it is necessary. If you have explored other options, and it's still impossible for you to get out of debt - bankruptcy may be the lifeline you need.
Deciding whether to file for bankruptcy is a serious financial decision and the decision to file for bankruptcy is never easy. It is usually the last resort for people struggling financially.

For those who qualify, bankruptcy can truly be a way out of trouble. Here are four major benefits to filing for bankruptcy.

1.You should be able to keep your home:
Using the federal bankruptcy exemptions, you can protect up to $23,675 of equity in your home. This amount is doubled if you file jointly with your spouse. If you can protect this equity, you should be able to keep your house and file for bankruptcy. However, if you are not able to protect your home equity, you can still protect your home and file a Chapter 13 bankruptcy.

2.Your creditors will stop harassing you:
When you file for bankruptcy, a legal mechanism called the automatic stay immediately goes into effect. The automatic stay stops your creditors from continuing with collection activities, which can provide you with peace of mind as well as the opportunity to regroup during your bankruptcy.

3.You can discharge your debt:
This is usually your main goal in filing for bankruptcy. A bankruptcy discharge will release you from personal liability for certain debts. In other words, after the discharge, you are no longer legally required to pay any debts that were discharged. The discharge is a permanent judicial order stopping your creditors from taking any form of collection action on discharged debts, including legal action and any form of communications, such as telephone calls, letters, and personal contacts.

4.You will get a financial "Fresh Start":
After your debts are discharged, your financial slate will be wiped clean. You can then apply for new loans and credit cards. The interest rates won't be stellar right away, but the best way to rebuild your credit is to operate under those terms and prove that you're a responsible debtor. A fundamental goal of the federal bankruptcy laws enacted by Congress is to give debtors a financial "fresh start" from too much debt.

Talk to an expert:
The best course is to talk with a qualified consumer bankruptcy attorney who can analyze your financial situation and apply bankruptcy law to properly fit the situation. If you are struggling with your finances and too much debt, bankruptcy can help you get financially back on track.

If you find yourself too deep in debt, and cannot possibly pay your bills, I can help. If you are facing a foreclosure, utility shut off, or lawsuit, I can help. Please call my office at (814) 240-1013 or email me at richarda@johnstownbankruptcy.com with your questions. The first office consultation is free and payment plans are accepted.