Five Reasons Bankruptcies Are Filed
People file bankruptcy for numerous unique reasons. Very few individuals file bankruptcy when they can pay their bills. The bankruptcy changes made in 2005 prevent this from taking place. These are the five biggest reasons people consider filing bankruptcy:
Medical Bills
Recent illness or an unfortunate accident can ruin a family’s finances in short order. Lack of insurance increases this risk. Income can even be further affected by the injured family member missing work. Which takes us to the next familiar reason people file bankruptcy.
Job Loss
Losing employment impacts finances immediately, especially if there are no savings. Unemployment benefits don’t compare to previous earnings and only last a set amount of time.
Stop Foreclosure
Stopping a foreclosure can often only be done by filing a chapter 13 bankruptcy. Filers can include overdue mortgage payments and legal fees into the bankruptcy repayment plan, permitting filers to keep their home and create a workable payment plan.
Stop Wage Garnishments and Repossessions
Filing a chapter 7 bankruptcy can stop wage garnishments immediately. Any property you have that is in danger of repossession, including the overdue payments in a ch 13 can stop repossessions and even get your property returned after repossession if filed in time.
Stop Creditor Harassment
Once a bankruptcy is filed, the “bankruptcy stay” is put in place stopping creditors from contacting you in any way. 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. Since unemployment rates are rising due to the economy right now, more and more people will be filing bankruptcy.
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.
