Five Reasons Bankruptcies Are Filed
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
Recent illness or an unfortunate accident can ruin a family’s finances in short order. Especially if no health insurance is available. Income can even be further affected by the injured family member losing work. Which takes us to the next popular reason people file bankruptcy.
Job Loss
Losing employment impacts finances immediately, especially if there are no savings. Unemployment is usually just a fraction of previous income levels, and only lasts so long.
Stop Foreclosure
A chapter 13 bankruptcy can make a payment plan to catch up on late mortgage payments and stop foreclosure. Past mortgage payments and legal fees can be included, permitting filers to keep their home and create a feasible payment plan.
Stop Wage Garnishments and Repossessions
Filing a chapter 7 bankruptcy can stop wage garnishments immediately. If your car or other property is at risk of being repossessed, 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. And with unemployment rates at over 10%, more people will be taking advantage of the relief bankruptcy provides.
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.
