People file bankruptcy for numerous different reasons. Very few people file bankruptcy when they can pay their bills. The new bankruptcy laws protect this from occurring. These are the five biggest reasons people think about filing bankruptcy:
Medical Bills
Recent illness or an unfortunate accident can ruin a family’s finances in short order. When someone has no health insurance, the risk is even higher. 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 a weekly paycheck can affect the family budget rapidly. Unemployment benefits only last so long, and are typically a fraction of previous earnings.
Stop Foreclosure
A chapter 13 bankruptcy can create a payment plan to catch up on late mortgage payments and stop foreclosure. Typically a filer can include overdue payment and legal fees, permitting filers to keep their home and create a workable payment plan.
Stop Wage Garnishments and Repossessions
By filing a ch 7 bankruptcy, wage garnishments can be halted. If your car or other property is at risk of being repossessed, 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. Phone calls stop immediately giving you time to breathe and get your finances in order.
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.