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
MORE RESOURCES:
RELATED ARTICLES
Are You SURE Your A Bad Debt?
Many people who seek the advice and guidance of debt counsellors are
driven to them in the first place by fear and ignorance - two powerful
emotions which often mask the real scale of the problems.In many cases,
what you made have been led to believe is a 'bad' level of debt, may
instead need only some careful reorganisation and a new set of mortgage
priorities.
Secrets to Why Debt Reduction is So Vital for Your Financial Health
Living with debt is never a good idea if you want to make long-term
financial plans. Every cent you use to service debt is money that could
have been invested in your future.
Currency Trading Fee Concept
Troubles with Global Economy; Do you see future problems with our global
economic plans to make a one world system, where free trade and prosperity
can rein the world over. Many world leaders have agreed a one-world system
is best for all.
Craving For Financial Freedom
Have you ever felt trapped in a Rat Race and wished to retire quickly but
rich?Have you ever felt that you are spending way too much time working
with your boss at your office instead of with those you love? Your spouse,
children, friends?Have you ever felt frustrated because you are so deep in
debt that you think you won't be able to retire because as soon as you do,
the money will stop coming and thus you won't be able to pay off your
mortgages and credit card?Have you ever felt that you have no control over
your life anymore in terms of time? Think about it: can you take a
vacation just anytime whenever you want/ need it and as long as you want/
need it?Have you ever wished that you can work whenever you want and
wherever you want?You are not the only one!Too many people are trapped in
a Rat Race because they have to. There are too many bills to pay, and too
many dreams to fulfill.
Hide That Car! Fighting the Repo Man
Vehicle repossession may appear justified in circumstances where a person
is generally being irresponsible and otherwise able to meet this financial
obligation. However, what about that hardworking guy or gal who paid their
automobile note dutifully for three years, and missed one payment? Why
should their car be repossessed?Basically, the lender owns your car until
it is paid in full.
New Bankruptcy Law Will Not Protect You from Identity Theft
Recently passed by Congress with overwhelming support, the oddly-named
Bankruptcy Abuse Prevention and Consumer Protection Act was designed to
eliminate "bankruptcy of convenience." The perceived problem is that many
compulsive gamblers, shoppers and drug users often run up huge debts on
easily available credit cards with no intention of paying their bills.
Why You Should Get Out of Debt Today?
The main reason for getting out of debt today, is because people with
little or not debt have more control over their future:1. They have more
discretionary income, meaning that you won't be living pay check after pay
check as you probably are right now.
What is Bankruptcy?
Personal bankruptcy is a legal way to give people with overwhelming debt a
fresh financial start. However, it is important to realize that certain
forms of debt, such as student loans, are not forgiven through the
bankruptcy process.
Budget the Luxuries First!
Strictly speaking, his advice was preceded by another Heinlein maxim as
well. "Sovereign ingredient for a happy marriage: Pay cash or do without.
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.
What is Debt Settlement?
Debt settlement is the process of negotiating with your creditors so that
you are able to pay off a certain percentage of the debt amount that you
owe. A debt settlement company will use different types of strategies to
negotiate with your creditors so that you get the best outcome.
Debt Management - Is It the Right Choice For You?
Debt Management plans offer credit counseling clients a different and new
approach to tackle their finances. Finding out if a debt management plan
is right for you can take some time.
Debt Getting You Down? - Make a List!
Debt is not much fun and when faced with it, people sometimes look for
complicated debt solutions and often overlook the many simple ways that
you can save money. Believe it or not, one of the simplest and most
effective debt solutions is to get hold of a pen and a piece of paper and
make a list.
Purchase Your Future Now While It Is Still Inexpensive
Leaving school, getting a new job, or even a raise at your current one,
has most people considering their next great purchase. Few think about the
affect this could have on their future.
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.
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.
Taking The Plunge Into Bankruptcy
Bankruptcy is one of the most difficult things a person has to do. The
decision to file bankruptcy is a hard one.
Bankruptcy - The New Scarlet Letter
Nathaniel Hawthorne's book The Scarlet Letter states in Chapter 2, "On the
breast of her gown, in fine red cloth, surrounded with an elaborate
embroidery and fantastic flourishes of gold thread, appeared the letter
A." The letter A stood for the word adulterer and represented one of the
worst insults in society.
Stop Debt Collectors
Can you stop debt collectors ? . .
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.
--
http://venteinternet.blogspot.com |
http://pusatinternetmarketing.blogspot.com |
http://webandblogdesign.blogspot.com
No comments:
Post a Comment