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A legal declaration that an individual or business can no longer pay their debts is known as bankruptcy. There are many reasons 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 opt to file for bankruptcy is because a job loss. The current bad state of the economy has forced a lot of people to leave their work, and therefore leaving them unable to provide for themselves and their family. Getting the boot 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. Today, medical costs are really expensive 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 " Be it a car, your home, or any other highly valuable item that has been 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. Stop home foreclosure and catch up on missed mortgage payments " Filing for Chapter 13 Bankruptcy won't get rid of your property mortgage, but it will stop foreclosure before bidding or sales will occur. This can then let you to repay your mortgage amount left (also called mortgage arrears).
5. Put a halt to creditors' harassing calls and behavior " More often than not, creditors tend to do debt collection in a not-so-nice manner. Their abusive and frequently annoying behavior is very unneeded, and in fact, unethical. Filing for bankruptcy can stop the demands of many creditors, thus halting the many harassing phone calls and bad behavior.
There are many 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.
1. Job loss " One of the most common reasons people opt to file for bankruptcy is because a job loss. The current bad state of the economy has forced a lot of people to leave their work, and therefore leaving them unable to provide for themselves and their family. Getting the boot 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. Today, medical costs are really expensive 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 " Be it a car, your home, or any other highly valuable item that has been 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. Stop home foreclosure and catch up on missed mortgage payments " Filing for Chapter 13 Bankruptcy won't get rid of your property mortgage, but it will stop foreclosure before bidding or sales will occur. This can then let you to repay your mortgage amount left (also called mortgage arrears).
5. Put a halt to creditors' harassing calls and behavior " More often than not, creditors tend to do debt collection in a not-so-nice manner. Their abusive and frequently annoying behavior is very unneeded, and in fact, unethical. Filing for bankruptcy can stop the demands of many creditors, thus halting the many harassing phone calls and bad behavior.
There are many 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.
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