Five Reasons Bankruptcies Are Filed
People file bankruptcy for many different reasons. Very few people file bankruptcy when they can pay their bills. The new bankruptcy laws protect this from happening. These are the five biggest reasons people think about filing bankruptcy:
Medical Bills
Getting sick or hurt can really have an effect on finances. Lack of insurance increases this risk. Income can even be further affected by the injured family member losing work. Which leads us to the next common reason people file bankruptcy.
Job Loss
Job loss and layoffs can put people in a financial disaster quickly, particularly if they were living paycheck to paycheck while working. Unemployment benefits don’t compare to prior earnings and only last a set amount of time.
Stop Foreclosure
Filing a chapter 13 bankruptcy is often the last recourse to catching up on missed mortgage payments and stopping foreclosure. Filers can include overdue mortgage payments and legal fees into the bankruptcy repayment plan, allowing them to keep their home and stop the foreclosure process.
Stop Wage Garnishments and Repossessions
By filing a ch 7 bankruptcy, wage garnishments can be halted. , you can file a chapter 13 and stop the repossession by including the missed payments in the payment plan.
Stop Creditor Harassment
Creditors can no longer contact you once you have file bankruptcy papers. You will no longer receive phone calls or mailings, giving you a chance to breathe.
The stigma related to bankruptcy is no longer apparent in today’s World. And with unemployment rates at over 10%, more people will be taking advantage of the relief bankruptcy provides.
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.
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