Top Reasons People File Bankruptcy
15 June 2009People file bankruptcy for many different reasons. Very few individuals file bankruptcy when they can pay their bills. The bankruptcy changes made in 2005 prevent this from going on. Here are the top 5 reasons people actually file bankruptcy:
Medical Bills
Getting sick or hurt can really have an effect on finances. When someone has no health insurance, the risk is even greater. Add in the fact that an illness means one earning family member or more can miss work, and income is drastically reduced. Which leads us to the next popular reason people file bankruptcy.
Job Loss
Losing a weekly paycheck can affect the family budget quickly. Unemployment benefits only last so long, and are typically a fraction of previous earnings.
Stop Foreclosure
Stopping a foreclosure can often only be done by filing a chapter 13 bankruptcy. Past mortgage payments and legal fees can be included, helping them stop foreclosure, keep their home, and get back on track.
Stop Wage Garnishments and Repossessions
By filing a ch 7 bankruptcy, wage garnishments can be halted. Any property you have that is in danger of repossession, by creating a payment plan in a chapter 13, you can stop the repossession.
Stop Creditor Harassment
Creditors can no longer contact you once you have file bankruptcy papers. Phone calls stop immediately giving you time to breathe and get your finances in order.
Filing bankruptcy no longer has the stigma typically associated with it in the past. Since unemployment rates are rising due to the economy right now, more and more people will be filing bankruptcy.
Guest Article Provided By: BankruptcyFormProcessing.com where you can find more information on filing bankruptcy and DoItYourSelfBankruptcyForms.com where you can find free bankruptcy forms.
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