9 Reasons Why Consumers File Bankruptcy

9 Reasons Why Consumers File Bankruptcy

There are times filing bankruptcy is necessary in order to maintain a level
head and to keep from drowning in debt. If you find yourself relating
to any of the following reasons, you may want to discuss your situation
further with an experienced bankruptcy attorney.

  1. Obtain a fresh start. You don’t have to keep struggling in getting ahead with your finances
    when you have legal options that can help you step by step. Regain financial
    control to begin rebuilding your credit.

  2. Stop or prevent foreclosure. If you are behind on mortgage payments
    Chapter 13 bankruptcy may help you cure defaults and get current with payments to delay or avoid
    further action.

  3. Wipe out medical debt. One of the main reasons why a personal bankruptcy is filed is due to being
    overwhelmed by medical bills. In some cases, filing can help reduce what you owe or discharged (eliminated)
    completely.

  4. Stop garnishments, lawsuits and judgments. Legal action being taken against you stops immediately when you file
    bankruptcy. This includes collection attempts for outstanding debts such
    as taxes and student loan debt.

  5. Get rid of credit card debt. You can eliminate (Chapter 7) or reduce the amount you owe (Chapter 13)
    based on your ability to make payments.

  6. Get help with back income taxes. Under limited circumstances they can be eliminated or discharged in
    Chapter 7 bankruptcy, but you may qualify for a reduced payment amount in Chapter 13.

  7. Stop or prevent repossession. If you fall behind on vehicle payments, you may qualify for reduced payments
    (Chapter 13) depending on how long you’ve had the vehicle. In some
    cases, you may be able to get your vehicle back after
    repossession.

  8. Stop creditor harassment. Put an end to harassing collection attempts from creditors via mail and
    phone. They may face repercussions if they continue to pursue collection
    attempts against you during and after proceedings.

  9. Help you deal with debt from being unemployed. If you lost your job it can be difficult to get caught up on missed payments,
    especially if you are trying to keep your home and vehicle.

Reference:
http://www.tsphope.org/top-10-reasons-to-file-bankruptcy/

By | 2017-12-13T02:11:14+00:00 October 3rd, 2013|Bankruptcy|Comments Off on 9 Reasons Why Consumers File Bankruptcy