Bankruptcy is often seen as a last resort, but it can be a powerful tool for building a better financial future. Here are seven ways it can help:

1. Debt Relief
   Both Chapter 7 and Chapter 13 can significantly reduce or eliminate your debts, giving you the breathing room to start fresh.
   

2. Keep Your Home
   Chapter 13 bankruptcy allows you to catch up on missed mortgage payments and avoid foreclosure, giving you time to protect your home.
   

3. End Creditor Collection Actions
   The automatic stay puts an immediate stop to wage garnishments, lawsuits, and other creditor actions as soon as you file for bankruptcy.
   

4. Lower Monthly Payments
   Under Chapter 13, your debts are restructured into a manageable payment plan, making it easier to stay on top of your finances without struggling every month.
   

5. Protect Your Retirement Savings
   Retirement accounts, such as 401(k)s and IRAs, are generally protected in bankruptcy, so you can safeguard your future savings even while addressing your debts.
   

6. Rebuild Your Credit Over Time
   Many people who file for bankruptcy find that their credit score starts improving within a year, especially if they focus on responsible financial habits afterward.
   

7. Regain Financial Control
   Bankruptcy offers a structured process to address overwhelming debt, giving you the chance to take back control of your financial life.