Five Reasons Bankruptcies Are Filed
People file bankruptcy for many different reasons. Very few individuals file bankruptcy when they can pay their bills. The new bankruptcy laws protect this from going on. 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. Lack of insurance increases this risk. Missing work due to illness can impact family finances even further. Which leads us to the next popular reason people file bankruptcy.
Job Loss
Losing employment impacts finances immediately, especially if there are no savings. Unemployment benefits only last so long, and are typically a fraction of previous earnings.
Stop Foreclosure
Filing a chapter 13 bankruptcy is often the last resort to catching up on missed mortgage payments and stopping foreclosure. Past mortgage payments and legal fees can be included, 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. , 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
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 associated with bankruptcy is no longer apparent in today’s World. 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.
