|
|
| www.1001TopWords.com |
|
|
Top Ten Reasons People File for Bankruptcy
1. Eliminate the legal obligation to pay many of your debts. This process of wiping the slate clean is called a discharge of debts. The goal of a discharge is to reduce debt to give you a fresh start. Whether it is through straight bankruptcy (Chapter 7 Bankruptcy) or through reorganization (Chapter 13 Bankruptcy), most or all of your debts can be cleared. 2. Stop foreclosure on you house and allow you to effectively make payments to catch up on missed payments of your mortgage. If your home is in foreclosure, Chapter 13 Bankruptcy will stop the foreclosure any time prior to the sale. Bankruptcy does not eliminate mortgages on your property without payment. Rather, bankruptcy will structure a plan in order to repay your mortgage arrears (the amount that you are behind). 3. Prevent your car or other property from being repossessed. Even if the creditor has repossessed your car, filing bankruptcy can effectively force them to return your car or other personal property (if the bankruptcy is filed quickly enough). The past payments you have missed will be consolidated into your Chapter 13 Bankruptcy plan. After this you will no longer pay the finance company, rather you will make monthly payments to the trustee of your Chapter 13 Bankruptcy who will then pay the finance company. 4. Reduce or even eliminate high medical bills. Sometimes an unfortunate accident or major recently discovered illness can completely ruin a family. Many families have to make choices on allocation of bills. Often, bills that were once important become insignificant to the large medical bills acquired by a loved one. Filing Chapter 7 Bankruptcy can greatly reduce the amount of medical bills. 5. Recent loss of employment. Studies show that loss of work is one of the most common reasons people file for bankruptcy. This is very easy to see. A family can get comfortable on two maybe even one salary. They can take on regular amount of debts, join clubs, and pay normal bills with relative ease. All of a sudden one or both spouses lose a job and a family must go from two salaries to one. Losing a job is closely tied to high medical bills. Losing a job means this family may be left without the protection of insurance that was once provided by their employer. Often times these two factors combined create an almost impossible mountain to climb without the help of bankruptcy. 6. Stop harassing behavior from creditors. Some creditors do not always take the right course of action when attempting to collect a debt. Often, creditors will persistently call the home of a particular debtor with demeaning and abusive behavior. Not only is this unethical it can rise to the level of unlawful. In essence, bankruptcy will put on hold the demands of many creditors and stop the harassing phone calls and other inappropriate behavior all together. 7. Restore or prevent your utilities from being shut off. As you have probably seen many of these reasons overlap. Some lead to another. If your home is in risk of foreclosure then your utility bill may also be in risk of being terminated. Filing bankruptcy can prevent the utility company from leaving you in the dark. 8. Provide help for large amounts of student loan debt. While it is true that your student loans will not be eliminated like several other types of unsecured debt, bankruptcy can consolidate your student loan debt. This consolidation will allow a debtor to make monthly payments through Chapter 13 Bankruptcy that are within the financial ability of the debtor. 9. End wage garnishments. Chapter 7 Bankruptcy will stop wage garnishment. Wage garnishment basically takes away your weekly earnings often times leaving you without necessities. Chapter 7 Bankruptcy allows you to purchase necessities for you and your family. Chapter 13 Bankruptcy will also help in this regard. 10. Challenge certain claims of fraudulent creditors. Bankruptcy will allow you to challenge these claims from creditors who are trying to collect more money from you than you really owe. An attorney can provide the support and the backing you will need to step up to these creditors. Attorneys often even the playing field between a big creditor and a single debtor. Filing bankruptcy with an attorney can stop fraudulent reporting by a creditor. Original content from http://www.bankruptcyhome.com You can also view more related articles at http://www.bankruptcyhome.com/articles.htm
|
|
|
|
RELATED ARTICLES
The ONE Law You Should Be Breaking There is a law all smart people break. Assess Your Financial Attitude and Eliminate Your Debt Forever Want to know if your attitude towards your finances is helping you or damaging your future? Take this Quiz and find out... Deal with All Your Debts with Care! Lots of people take a large ammount of loans and suddenly they discovered that they're in debt and life seems pretty gloomy for them, in this situation please don't despair. Most people have been there and know just how easily it can creep up on us. Most of us try to ignore it until it becomes such a crisis that we go into panic and don't know what to do now. 5 Ways to Get Out of Debt It has been said that everyday more and more people in the world are getting into unsecured debt. Once reason for this is the relative ease in which credit card companies and banks are extending credit to their customers. In fact, it was reported in the newspapers that in a test, a person was able to amass 15 credit cards in one afternoon quite easily. Credit And Debt Relief--A One Stop Solution Amy Wright, 34, was extatic when her realtor showed her the three bedroom townhome overlooking the lushious golf course. It was exactly the home she was looking for. The interior was sunny and bright, with a newly remodeled kitchen, spacious bedrooms, and the perfect little study area to set up her new home office. It had a spectacular pool and a lovingly tended flower garden. Best of all-the seller had to move immediately, so the home was a steal and miraculously within her budget! Amy was already making moving preparations when suddenly, a devastating blow paralyzed her plans. Her credit application for a mortgage had been denied. She couldn't understand how this had happened-just a year ago, her credit had been almost perfect! The last year had been a little tight, and sure she had a few late payments here and there?but she had no idea it was so bad that now she couldn't even get the home of her dreams. Debt We all know about debt. If you don't have too much as an individual you can increase the quality of your life, but with more than you can handle it can make your life a nightmare. Debt Relief -- Why Most Programs Have A 75% Failure Rate Debt consolidation, equity loans, credit counseling, debt management plans, even Chapter 13 bankruptcy ? it doesn't matter which of these debt programs you're talking about. They all suffer from one fatal flaw, the number one problem that causes most people to fail at eliminating their debts through these techniques. Can you guess the problem? New Bankruptcy Law ? Where?s the Consumer Protection? On April 20, 2005, President Bush signed into law the Bankruptcy Abuse and Consumer Protection Act, a piece of sweeping legislation that brought about the most sweeping changes in personal bankruptcy law in the last quarter century. This bill, which takes effect in October 2005, passed with the overwhelming support of both parties of congress, claims, through its very name, to offer "consumer protection." Does it? How are consumers "protected" by this bill? Ten Ways to Get Out of Debt 1) Use your Assets Questions to Ask a Credit Counseling Service about Debt Relief Debt relief is a topic on a lot of consumers' minds these days, and with good reason. American credit card debt in 2001 was $692 billion, triple the amount from 1989. In that same time period, the average credit card increase for a middle-class family was 75%. The amounts were even higher for low-income families and senior citizens. At one time, such a high amount of credit card debt would seem frivolous as buyers spent money they didn't have on luxury items such as electronics or jewelry. Today, however, in less stable economic times and a poor job market, more people are turning to credit cards as a way to extend their income. More and more debt is being rung up for everyday items such as groceries and medical bills. How can people get real help with debt relief? Reduce Your Debt Do you want to reduce your debt? Having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car? Your Secret Weapon... A Budget For many, the word 'budget' immediately sends shivers down the spine. Why in the world would anyone need or want to budget their money? Debt Management Systems What is a debt management system, and when do you need it? Like any kind of management system, debt help systems can be good or bad. We will take a look at what you can do to manage your debt better. One element is paying off debt, but that's not the only one. It is much more than paying off your credit cards, and doesn't end when you pay off your mortgage or car loan either. You have to make a system of good money management, and follow this system in your daily life. Here are the key elements in such a system: Debt Elimination 1 If you have multiple debts, you may well be wishing you had a debt elimination wand to wave and make all the debts disappear. You would probably wish even harder for that magic wand if you were falling behind with, or at least struggling hard to keep up with, the monthly payments on those debts. Learn The Five Key Debt Reduction Steps You Must Take Immediately! Step 1. The purpose of this first step is to bring you back to reality. You must know exactly how much money you owe and to whom you owe it. Bankruptcy Reform There are some new bankruptcy laws going into effect before long and many think they are much needed. Of course, that depends on which side of the bankruptcy you are a part of. Creditors are going to be the ones to benefit from the new laws, but there may be some helpful regulations for those filing for bankruptcy as well. Debt and Financial Optimism in the UK Continue With £1.3 trillion pounds worth of debt in the UK, Scotland's Citizens Advice Bureau has welcomed a new Bill to regulate lenders and protect borrowers from creating un-repayable levels of personal debt. Different Ways Of Dealing With Debt Bills, creditors, debt collectors. Are you yearning for the days when all you had to worry about was the money in your piggy bank? If so, you are far from alone. Whether its illness, loss of a job, or simple overspending, it happens to the best of us. But that doesn't mean your financial situation needs to go from bad to worse. Is It Possible to Be Sued For My Debts? It is possible for creditors and third-party collection agencies to use legal means as a way to collect debts. The likelihood of being sued or having your wages garnished depends largely on the creditor that is owed money. It has been my experience that certain creditors are more prone to legal action than others. British Families and Debt There is current concern from the Bank of England that British families are getting deeper into debt, however, it has been said that lenders are putting themselves at risk because people are now more willing to make themselves bankrupt.
|
| © Athifea Distribution LLC - 2013 |