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. Lack of insurance increases this risk. 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, especially 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 recourse to catching up on missed mortgage payments and stopping foreclosure. Typically a filer can include overdue payment and legal fees, permitting filers to keep their home and create a feasible 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. You will no longer receive phone calls or mailings, giving you a chance to breathe.
Filing bankruptcy no longer has the stigma typically associated with it in the past. 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.
