Top Reasons People File Bankruptcy
People file bankruptcy for numerous different reasons. Very few individuals file bankruptcy when they can pay their bills. The new bankruptcy laws protect this from happening. Here are the top 5 reasons people actually file bankruptcy:
Medical Bills
Getting sick or hurt can really have an effect on finances. When someone has no health insurance, the risk is even greater. Income can even be further affected by the injured family member losing work. Which leads us to the next popular 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 past 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. Past mortgage payments and legal fees can be included, permitting filers to keep their home and create a workable payment plan.
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, 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. Phone calls stop immediately giving you time to breathe and get your finances in order.
Unlike in the past, there is no stigma attached with filing bankruptcy. 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.
