Top Reasons People File Bankruptcy
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 happening. 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 accessible. Missing work due to illness can impact family finances even further. Which takes us to the next common reason people file bankruptcy.
Job Loss
Job loss and layoffs can put people in a financial catastrophe quickly, especially 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
Stopping a foreclosure can often only be done by filing a chapter 13 bankruptcy. Past mortgage payments and legal fees can be included, helping them stop foreclosure, keep their home, and get back on track.
Stop Wage Garnishments and Repossessions
Filing a chapter 7 bankruptcy can stop wage garnishments immediately. , 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. You will no longer receive phone calls or mailings, giving you a chance to breathe.
Filing bankruptcy no longer has the stigma typically associated with it in the past. 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.
