Bankruptcy law is often described as giving filers a "fresh start", and this is true for a lot of reasons. Whether your finances are tied up with credit card debt, a lawsuit, medical bills, or a repossession (to name just a few problems), bankruptcy will help you back on your feet.
The biggest problem for many of my clients is that they cannot get out from under older obligations brought about by temporary unemployment, illness, or other misfortune. These problems lead to lawsuits, penalties, fines, fees, and other costs that can quickly dwarf the underlying obligation. $5,000 in credit card debt accumulated during a spell of unemployment can quickly become $10,000 with interest, court costs, etc. Ongoing interest can make it impossible to ever hope to pay off the debt. Bankruptcy can stop the spiral.
The bankruptcy discharge eliminates a wide range of debt. Credit cards, medical bills, car repossessions, payday loans, and sometimes even taxes can be wiped away. The bankruptcy exemptions allow you to "exempt" your personal property from being used to pay your creditors, so in the VAST majority of bankruptcy cases, you will not lose your home, car, personal possessions, bank accounts, retirement funds... or anything.
Bankruptcy really is a "fresh start", as opposed to "starting at zero". You keep your property and income, and clear out the old debt (and penalties, fines, etc.). Bankruptcy allows you to move forward without the burdens of the past without giving up your possessions. You'll keep your car to go to work, your home to live in, your retirement accounts, and everything else you need to be productive going forward.
Most surprisingly for most of my clients, your creditor score will usually INCREASE. You read that correctly. This is true because your ratio of debt disappears. Old lawsuits also destroy your credit, so eliminating them through bankruptcy improves your credit profile.
Spring is a time for personal growth and fresh starts. Contact us to discuss whether or not bankruptcy is an option for clearing up your financial problems faster than you ever imagined. I am an experienced Pittsburgh bankruptcy attorney who will be happy to review your situation in a free consultation.