A legal declaration that a person or business can't pay their debts is known as bankruptcy. There are many causes why people would decide to declare bankruptcy, and here are some of the top causes:
1. Job loss - One of the most common reasons people choose to go bankrupt is because they lost their job. The economy's current bad state has forced a lot of people to leave their work, and therefore leaving them unable to provide for themselves and their family. Getting the pink slip may also mean losing insurance previously 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. These days, medical costs are really high and could pile up to inconceivable amounts. Filing for Chapter 7 Bankruptcy can greatly cut 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 merged 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 get rid of your property mortgage, but it will stop foreclosure before bidding or sales can occur. This can then let you to repay the mortgage amount left (also called mortgage arrears).
5. Stop creditors' harassing calls and behavior - A lot of times, creditors tend to do debt collection in an unpleasant manner. Their abusive and frequently annoying behavior is very unneeded, 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. Of course, the best way to handle whatever bad financial situation is to consult a lawyer. - 32519
1. Job loss - One of the most common reasons people choose to go bankrupt is because they lost their job. The economy's current bad state has forced a lot of people to leave their work, and therefore leaving them unable to provide for themselves and their family. Getting the pink slip may also mean losing insurance previously 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. These days, medical costs are really high and could pile up to inconceivable amounts. Filing for Chapter 7 Bankruptcy can greatly cut 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 merged 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 get rid of your property mortgage, but it will stop foreclosure before bidding or sales can occur. This can then let you to repay the mortgage amount left (also called mortgage arrears).
5. Stop creditors' harassing calls and behavior - A lot of times, creditors tend to do debt collection in an unpleasant manner. Their abusive and frequently annoying behavior is very unneeded, 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. Of course, the best way to handle whatever bad financial situation is to consult a lawyer. - 32519
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