Top Reasons People File Bankruptcy
People file bankruptcy for many different reasons. Very few individuals file bankruptcy when they can pay their bills. The bankruptcy changes made in 2005 prevent this from going on. These are the five biggest reasons people think about filing bankruptcy:
Medical Bills
Recent illness or an unfortunate accident can ruin a family’s finances in short order. When someone has no health insurance, the risk is even higher. Add in the fact that an illness means one earning family member or more can miss work, and income is drastically reduced. Which leads us to the next familiar reason people file bankruptcy.
Job Loss
Losing a weekly paycheck can affect the family budget rapidly. 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, helping them stop foreclosure, keep their home, and get back on track.
Stop Wage Garnishments and Repossessions
By filing a ch 7 bankruptcy, wage garnishments can be halted. , 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. Phone calls stop immediately giving you time to breathe and get your finances in order.
The stigma related to 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.
