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. Loss of a job - One of the most common causes why people file for bankruptcy is because they lost their job. The economy's current critical state has made 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 could've been provided by their employer.
2. Medical bills - Sometimes, a terrible accident, illness or even just the loss of insurance caused by job loss, can be enough reason for a person to file for bankruptcy. Today, medical costs are really high and could pile up to unimaginable amounts. Filing for Chapter 7 Bankruptcy can greatly reduce 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- bankruptcy could force the creditor to return said 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- Bankruptcy won't eliminate your property mortgage, but it can stop foreclosure before sales or bidding will occur. This can then let you to repay the mortgage arrears, or the mortgage amount left.
5. Stop creditors' harassing calls and behavior - Oftentimes, creditors tend to do debt collection in an unpleasant manner. Their abusive and oftentimes annoying behavior is very uncalled for, 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. - 31380
1. Loss of a job - One of the most common causes why people file for bankruptcy is because they lost their job. The economy's current critical state has made 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 could've been provided by their employer.
2. Medical bills - Sometimes, a terrible accident, illness or even just the loss of insurance caused by job loss, can be enough reason for a person to file for bankruptcy. Today, medical costs are really high and could pile up to unimaginable amounts. Filing for Chapter 7 Bankruptcy can greatly reduce 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- bankruptcy could force the creditor to return said 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- Bankruptcy won't eliminate your property mortgage, but it can stop foreclosure before sales or bidding will occur. This can then let you to repay the mortgage arrears, or the mortgage amount left.
5. Stop creditors' harassing calls and behavior - Oftentimes, creditors tend to do debt collection in an unpleasant manner. Their abusive and oftentimes annoying behavior is very uncalled for, 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. - 31380
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