5 Reasons To File Bankruptcy

Do you find yourself thinking about filing bankruptcy more every week? Are you always googling “how to file bankruptcy” or “questions about bankruptcy”? We feel your pain. We understand that deciding to declare bankruptcy is a huge decision and absolutely deserves time and research, but just for today let us make things a tad bit easier on you by giving you 5 quick reasons to file bankruptcy.

1. To get out of Credit Card Debt

As of just a few weeks ago the consumer credit card debt in America reached $800 billion dollars. Credit Card debt can quickly drown people with interest, penalties, and large required monthly payments, but bankruptcy can help! In most cases filing a Chapter 7 bankruptcy can completely eliminate credit card debt. In fact, getting rid of credit card debt is one of the main reasons for filing Chapter 7 bankruptcy in America today.

2. To stop a foreclosure

Since the mortgage crisis of 2008 our country has seen a rapidly increasing number of home foreclosures. If you and/or your family are behind on your mortgage and are worried about a looming foreclosure then you may want to look into filing a Chapter 13 bankruptcy. By filing a Chapter 13 bankruptcy you can halt the foreclosure process and find a way to catch up on those payments you are behind on while staying in your home.

3. To end a garnishment

A garnishment is when the court has agreed to allowed one of your creditors to take a certain portion of your wages directly from your employer before you see your paycheck. Without filing a bankruptcy one of the only ways to stop a garnishment is to pay it off entirely. Filing a Chapter 7 or Chapter 13 bankruptcy immediately stops any garnishment currently on your paycheck.

4. To stop vehicle repossession

In most cities in America a working vehicle is a necessity, so if you are facing vehicle repossession that could truly be detrimental to your finances. Similar to a foreclosure, filing a Chapter 13 bankruptcy will stop the repossession process and allow the debtor time to catch up on past due payments while keeping their vehicle.

5. To avoid lawsuits

What many people do not know is that when your personal bankruptcy is filed the court places a “stay” of protection on you that stops all debt collection attempts against you including phone calls, letters, garnishments, and most importantly: lawsuits. None of your creditors can sue you for a debt while this bankruptcy protection is available.

As you probably know, there are literally dozens of reasons that people find to file bankruptcy. But what really matters are the financial struggles specific to you. Even if none of the reasons mentioned here apply to your situation filing bankruptcy may still be exactly what you need to find a financial fresh start. Start by discussing your situation with a local bankruptcy attorney and ask for their opinion about how bankruptcy could help you and your finances.

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