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9 Reasons Why Consumers File Bankruptcy

Posted By Allmand Law Firm, PLLC || 3-Oct-2013

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.

Categories: Bankruptcy
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