Filing for bankruptcy may help you put an end to collection calls and the general stress that can come with being in debt. According to one Florida financial planner, the process of obtaining debt relief through bankruptcy can be both traumatic and satisfying at the same time.

Consumer debts such as car loans and credit card balances can generally be eliminated in a bankruptcy proceeding. In some cases, student loan debts may also be reduced or discharged through this process. However, you will need to show that being forced to make future student loan payments will cause an undue financial burden.

While it may be tempting to use retirement savings to stay current on an existing debt, it is generally not a good idea to do so. In many cases, raiding an IRA or 401(k) merely postpones a bankruptcy filing, and the money inside of these accounts is generally shielded from creditors in such a proceeding.

An exception might be made if you are currently receiving funds from a retirement account. Furthermore, only the first $1.28 million in IRA funds are protected from creditor claims, and this is true whether you have a traditional or a Roth IRA.

If you need help paying down credit card debt, consider filing for bankruptcy. A bankruptcy law attorney could talk more about the process and potential consequences of filing. An attorney may also provide more insight into the cost of seeking protection from creditors and when they are assessed. State and federal laws allow you to exempt assets from being liquidated in a Chapter 7 case.