Bankruptcy is one solution to regain control of your finances. It is known as the fresh start. It will allow you to either eliminate or greatly reduce the amount of debt that you owe. This will depend on whether you choose to file Chapter 7 or Chapter 13. ISee discussion). You are allowed to keep certain property and due to recent changes in the NYS Exemptions Law (Up to $150,000 of equity in a home) (For full discussion see NYS Exemption Chart. It is also possible to renegotiate or settle your debt. (see Alternatives to Bankruptcy.) Often clients owe back taxes in which some case they can either be completely be dischargeable for all or some years. (You must have at least filed your return in order for the returns to be dischargeable. The important thing is to take the first step and seek the advice of an experienced bankruptcy attorney who can determine the appropriate course of action to take or in some cases not to file at all.