Five Reasons Bankruptcies Are Filed
People file bankruptcy for many unique reasons. Very few individuals file bankruptcy when they can pay their bills. The new bankruptcy laws protect this from occurring. These are the five biggest reasons people think about filing bankruptcy:
Medical Bills
An accident or medical illness can impact family finances quickly. Lack of insurance increases this risk. Add in the fact that an illness means one earning family member or more can miss work, and income is drastically decreased. Which leads us to the next familiar reason people file bankruptcy.
Job Loss
Losing employment impacts finances immediately, especially if there are no savings. Unemployment is usually just a fraction of previous income levels, and only lasts so long.
Stop Foreclosure
A chapter 13 bankruptcy can create a payment plan to catch up on late mortgage payments and stop foreclosure. Typically a filer can include overdue payment and legal fees, helping them stop foreclosure, keep their home, and get back on track.
Stop Wage Garnishments and Repossessions
Garnishments can be stopped by filing a ch 7 bankruptcy. , by creating a payment plan in a chapter 13, you can stop the repossession.
Stop Creditor Harassment
Creditors can no longer contact you once you have file bankruptcy papers. Phone calls stop immediately giving you time to breathe and get your finances in order.
The stigma associated with bankruptcy is no longer apparent in today’s World. Unfortunately with todays rising unemployment rates, even more Americans will be filing bankruptcy for financial relief.
Guest Article Provided By: BankruptcyFormProcessing.com where you can find more information on filing bankruptcy and DoItYourSelfBankruptcyForms.com where you can find free bankruptcy forms.
