Bankruptcy basically means a legal declaration that an individual or business can’t pay their debts to those they owe money from. There are many causes why people would declare bankruptcy, and here are some of the top causes:
1. Loss of a job – One of the most common causes why people choose to go bankrupt is because they lost their job. The current dire state of the economy has forced a lot of people to leave their work, and therefore leaving them incapable of providing for themselves and their family. Losing a job may also mean losing insurance that would’ve been provided by their employer.
2. Medical bills – Sometimes, loss of insurance, a terrible accident or unexpected illnesses 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. Catch up on missed mortgage payments and stop home foreclosure – Filing for Chapter 13 Bankruptcy won’t eliminate your property mortgage, but it will stop foreclosure before sales or bidding can occur. It will then let you to repay your mortgage arrears, or the mortgage amount left.
5. Put a halt to creditors’ harassing calls and behavior – Oftentimes, 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 a stop to the demands of many creditors, thus halting the many harassing phone calls and bad behavior.
There are plenty of 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.
Seeking for legal advice or a family law lawyer or a litigation lawyer – click for more information.
categories: family court lawyer,family divorce lawyer,debt consolidation,bankruptcy,Divorce Lawyer,Family Lawyer,Litigation Lawyer,Personal Injury Lawyer,Criminal Lawyer
