Top Reasons People File Bankruptcy
People file bankruptcy for many different reasons. Very few people file bankruptcy when they can pay their bills. The bankruptcy changes made in 2005 prevent this from taking place. Here are the top 5 reasons people actually file bankruptcy:
Medical Bills
Getting sick or hurt can really have an effect on finances. 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
Job loss and layoffs can put people in a financial catastrophe quickly, particularly if they were living paycheck to paycheck while employed. Unemployment benefits don’t compare to previous earnings and only last a set amount of time.
Stop Foreclosure
A chapter 13 bankruptcy can make a payment plan to catch up on late mortgage payments and stop foreclosure. Filers can include overdue mortgage payments and legal fees into the bankruptcy repayment plan, 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. 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
Once a bankruptcy is filed, the “bankruptcy stay” is put in place stopping creditors from contacting you in any way. Creditor calls and mail will stop once you file, allowing you to relax and get back on your feet.
The stigma associated with bankruptcy is no longer apparent in today’s World. 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.
