It’s no secret that record numbers of consumers are filing for personal bankruptcy. Whether your debt crisis is the result of unexpected medical bills, job loss, or merely overspending, it can be very overpowering.  It may be difficult to admit that things have gotten so out of control as to consider personal bankruptcy, but for some people it is the best solution to regaining positive financial status.

The decision to file for bankruptcy is an important one, and the consequences of it must be understood before it is taken. It is an extremely tough decision to make and better left to the guidance of a Philadelphia bankruptcy attorney who has the expertise and knowledge of the current bankruptcy laws.

You should be very selective in finding the right personal bankruptcy attorney.  You can obtain referrals for a Philadelphia bankruptcy attorney from friends and family members.  Checking with your local bar association is also helpful, as they can also give you the name of a reputable Philadelphia bankruptcy attorney that will be able to handle your case.  It may take a little bit of effort to make a sound decision that you’re getting someone with experience and dedication to personal bankruptcy law, but you’ll be glad you did.

A Philadelphia bankruptcy attorney will help you to determine the type of personal bankruptcy you should file. There are 2 types of personal bankruptcy that may be filed with the federal bankruptcy courts: Chapter 7 personal bankruptcy, which erases most of your debts, and Chapter 13 personal bankruptcy, which creates a debt repayment plan.

Filing for personal bankruptcy under Chapter 7 and Chapter 13 will stop creditor harassment and will typically stop wage garnishments, depending on the reason for wage garnishment.  For example, if your wage is garnished because you need to pay child support, that wage garnishment will continue.  However, if your wage is being garnished to pay an unsecured debt, like a credit card, the wage garnishment will end.

Sometimes we find ourselves confronted with situations in life that we can not handle alone, and personal bankruptcy is a way to try and help yourself get your finances under control. Filing for personal bankruptcy does not make you less of a person at all.   Realizing that those bill collectors will stop hounding you and you will finally be able to rest better at night is certainly something to look forward to.