Five Reasons Bankruptcies Are Filed
People file bankruptcy for many unique reasons. Very few people file bankruptcy when they can pay their bills. The new bankruptcy laws protect this from occurring. Here are the top 5 reasons people actually file bankruptcy:
Medical Bills
Recent illness or an unfortunate accident can ruin a family’s finances in short order. Especially if no health insurance is available. Income can even be further affected by the injured family member missing work. Which leads us to the next familiar reason people file bankruptcy.
Job Loss
Losing a weekly paycheck can affect the family budget quickly. Unemployment is usually just a fraction of previous income levels, and only lasts so long.
Stop Foreclosure
Filing a chapter 13 bankruptcy is often the last recourse to catching up on missed mortgage payments and stopping foreclosure. Typically a filer can include overdue payment and legal fees, allowing them to keep their home and stop the foreclosure process.
Stop Wage Garnishments and Repossessions
Garnishments can be stopped by filing a ch 7 bankruptcy. Any property you have that is in danger of repossession, by creating a payment plan in a chapter 13, you can stop the repossession.
Stop Creditor Harassment
A “bankruptcy stay” is entered when you file, making it against the law for creditors to contact you. Creditor calls and mail will stop once you file, allowing you to relax and get back on your feet.
Filing bankruptcy no longer has the stigma typically associated with it in the past. 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.
