A legal declaration that an individual or business can't pay their debts is known as bankruptcy. There are many reasons why people would decide to declare bankruptcy, and here are some of the top reasons:
1. Loss of a job " One of the most common causes why people file for bankruptcy is because they lost their job. The current dire state of the economy has made a lot of people to leave their work, and therefore leaving them incapable of providing for themselves and their family. A job loss may also mean losing insurance that could've been provided by their employer.
2. Medical bills " Sometimes, a terrible accident, illness or even just the loss of insurance caused by job loss, can be enough reason for a person to file for bankruptcy. Nowadays, medical costs are really high and could pile up to inconceivable amounts. Filing for Chapter 7 Bankruptcy can greatly reduce or even completely eliminate these debts.
3. Preventing repossession of properties " If your home, car, or other highly valuable possession of yours is being repossessed, filing for Chapter 13 bankruptcy could force the creditor to return the aforementioned items to you. After this, your past missed payments will be consolidated into your bankruptcy plan. You will no longer pay to your creditors, but to your trustee instead. In turn, they will pay the finance company for you.
4. Stop home foreclosure and catch up on missed mortgage payments " Filing for Chapter 13 Bankruptcy won't get rid of your property mortgage, but it will stop foreclosure before sales or bidding will occur. This can then let you to repay your mortgage arrears, or the mortgage amount left.
5. Stop creditors' harassing calls and behavior " A lot of times, creditors tend to do debt collection in an unpleasant manner. Their abusive and oftentimes annoying behavior is very unnecessary, and in fact, unethical. Filing for bankruptcy can put on hold the demands of many creditors, thus halting the many harassing phone calls and bad behavior.
There are many other reasons to file for bankruptcy. Consulting with your lawyer is of course the best way to handle whatever bad financial situation you may have.
1. Loss of a job " One of the most common causes why people file for bankruptcy is because they lost their job. The current dire state of the economy has made a lot of people to leave their work, and therefore leaving them incapable of providing for themselves and their family. A job loss may also mean losing insurance that could've been provided by their employer.
2. Medical bills " Sometimes, a terrible accident, illness or even just the loss of insurance caused by job loss, can be enough reason for a person to file for bankruptcy. Nowadays, medical costs are really high and could pile up to inconceivable amounts. Filing for Chapter 7 Bankruptcy can greatly reduce or even completely eliminate these debts.
3. Preventing repossession of properties " If your home, car, or other highly valuable possession of yours is being repossessed, filing for Chapter 13 bankruptcy could force the creditor to return the aforementioned items to you. After this, your past missed payments will be consolidated into your bankruptcy plan. You will no longer pay to your creditors, but to your trustee instead. In turn, they will pay the finance company for you.
4. Stop home foreclosure and catch up on missed mortgage payments " Filing for Chapter 13 Bankruptcy won't get rid of your property mortgage, but it will stop foreclosure before sales or bidding will occur. This can then let you to repay your mortgage arrears, or the mortgage amount left.
5. Stop creditors' harassing calls and behavior " A lot of times, creditors tend to do debt collection in an unpleasant manner. Their abusive and oftentimes annoying behavior is very unnecessary, and in fact, unethical. Filing for bankruptcy can put on hold the demands of many creditors, thus halting the many harassing phone calls and bad behavior.
There are many other reasons to file for bankruptcy. Consulting with your lawyer is of course the best way to handle whatever bad financial situation you may have.
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