Five Reasons Bankruptcies Are Filed
People file bankruptcy for many unique reasons. Very few people file bankruptcy when they can pay their bills. The bankruptcy changes made in 2005 prevent this from going on. Here are the top 5 reasons people actually file bankruptcy:
Medical Bills
An accident or medical illness can impact family finances quickly. When someone has no health insurance, the risk is even higher. Add in the fact that an illness means one earning family member or more can miss work, and income is drastically reduced. Which leads us to the next familiar 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 working. Unemployment benefits only last so long, and are typically a fraction of previous earnings.
Stop Foreclosure
Filing a chapter 13 bankruptcy is often the last resort to catching up on missed mortgage payments and stopping foreclosure. Typically a filer can include overdue payment and legal fees, 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. 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. You will no longer receive phone calls or mailings, giving you a chance to breathe.
The stigma associated with 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 offers.
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.
