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Top Reasons Good People File for Bankruptcy

These days, just about anyone can find themselves facing difficult financial challenges. It is common for good people to do everything possible to make ends meet and still come up short of money. Loss of a job, unexpected medical expenses, divorce, living off your credit cards, or any number of similar situations in life can cause financial difficulty. It's not a bad thing when good people get behind financially, it just happens.

Sometimes people just need a little relief. Bankruptcy may be one of the ways to relieve some of the pressure and get the help needed to get through tough times. There are many reasons for filing bankruptcy. Bankruptcy is a legal process which provides relief for those who owe more than they are able to pay. The process allows folks to work out a plan to pay off some debt over a period of time, or even eliminate debt altogether. Bankruptcy can help rid you and your family of crippling debt, protect your assets, and provide you with some welcome relief. Here are some of the top reasons to file bankruptcy.

Relief from Massive Amount of Debt

One of the reasons for bankruptcy is to get help with a financial situation that is over-burdened with a lot of debt. Bankruptcy can get rid of the legal obligation to repay many or all debts. Credit cards, mortgage or rent deficiencies, medical bills, and utility bills are just a few of the debts that can be eliminated. Even some tax liabilities can be eliminated under certain circumstances. Through no fault of their own, some families have amassed a lot of medical bills due to some unexpected accident or health crisis like cancer or a long-term illness. Bankruptcy can eliminate many of these bills, get you out from under that huge debt, and provide a fresh start for you and your family.

Bankruptcy Can Stop Home Foreclosure

Another of the reasons to file bankruptcy is when people get behind on house payments and find it very difficult to get caught up again. Bankruptcy does not eliminate what is owed on a property mortgage. However, bankruptcy can stop the foreclosure proceedings on a home and allow for a sensible repayment plan. This essentially buys some time, restructures repayment of the past due amount, and brings the account current.

Prevent Repossession of Your Car or Other Property

Protecting your assets is another of the reasons for filing bankruptcy. Filing quickly can provide protection, can force a creditor or bank to return your car or other personal property even if it has already been repossessed. Any past, missed, or overdue payments will be combined into your overall plan for bankruptcy. After you file for bankruptcy, a trustee will be assigned and you will make all future payments to that trustee. The trustee then takes care of all payments with your finance company.

Protect Your Wages From Garnishment

Another of the reasons for bankruptcy is protection from wage garnishment. This can cause a lot of financial stress. A bankruptcy filing will put an end to wage garnishment, allow you to pay what you are able to pay, and keep more of your hard-earned money needed to live on.

Put an End to Creditor Harassment

Let's face it, some creditors can be very unreasonable when it comes to getting the money owed to them. Some will even resort to using bullying tactics, abusive language, or demeaning comments in their attempt to get money. Some of these tactics are unethical and, in some cases, may even be unlawful. Bankruptcy will place the sometimes unreasonable demands of these creditors on hold. Creditors who are overly persistent calling your home to collect a debt and even legal proceedings to collect a debt may be stopped altogether.

Filing for bankruptcy will also allow hold creditors accountable and challenge their claims of money owed, especially if they're trying to collect more money than is actually owed. Hiring a lawyer will give you some extra support in standing up to these sometimes unreasonable demands from big creditors. A bankruptcy attorney will also help to put an end to any fraudulent claims or reporting by creditors.

One of the Best Reasons for Filing Bankruptcy is to Get a Fresh Start

Bankruptcy is a legal process to help people wipe the slate clean and get a fresh start. Imagine how much relief you will feel when your debts are discharged or reduced and you can breathe again. With a straight Chapter 7 bankruptcy or a Chapter 13 bankruptcy, most or all of your debts can be cleared.

There can be any number of reasons to file bankruptcy. Before making any decisions about bankruptcy, you'll want to get the right information. Sometimes you need some basic information or help with your specific issues. You may want to consider consulting a bankruptcy attorney who can evaluate your specific situation and help you with detailed information on the protections available through bankruptcy. An extremely difficult and debilitating financial situation may be one of the best reasons for bankruptcy.

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