Filing for bankruptcy is, primarily, a financial decision. It is an option for those who have debts and cannot pay their bills. It gives them a chance to get a “fresh start” by discharging (eliminating) most or all of their debts. While, to the average person, the word “bankruptcy” may have negative connotations, the Founding Fathers of our country in the U.S. Constitution provided to Congress the powers to “make laws” regarding Bankruptcy, thus recognizing the need to assist people who may have fallen on hard times.
Like we said, filing for bankruptcy protection should not be a moral decision, but rather a business/financial decision. In addition, the bankruptcy filing can stop wage garnishments, lawsuits and harassing calls at work and at home, which often constitute a major distraction for people with debts.
The law allows debtors to protect, real and personal property, including, but not limited to, cars, homes (up to $165,000 in equity), bank accounts and cash, pensions and other retirement plans, social security and unemployment benefits, clothing and household goods (this is not a complete list).