Reasons People File for Bankruptcy

Columbus GA Bankruptcy Lawyer

Filing for bankruptcy has become very common these days. Financial troubles faced by the middle income people are forcing most of them into filing for bankruptcy. Some of the reasons why people file for bankruptcy are examined below:

• Many opt for a bankruptcy filing to eliminate all legal obligations towards debts. A bankruptcy allows you to make a fresh start. Both chapter 7 or straight or chapter 13 or reorganization bankruptcies reduce your debts so that you can start afresh. Your debts are more or less cleared.
• People opt for bankruptcy in order to stop foreclosure proceedings on their homes. This allows them to resume and catch up of missed payments as well as save their property from being foreclosed. Bankruptcy does not discharge mortgage payments but allows a bankruptcy plan to repay the arrears incurred.
• Bankruptcy is filed for to stop repossession of your car or other property. If bankruptcy is filed in tie, creditor cannot repossess you car and even if you have been a bit late in filing for bankruptcy, creditor has to return your repossessed car or any other personal property. The missed payments would be consolidated into your chapter 13 bankruptcy plan and hence can save your properties.
• There have been cases where high medical bills have brought a family into filing for bankruptcy. An accident or illness can ruin a family. Filing for chapter 7 bankruptcies can aid in reducing medial bills incurred.
• Loss of work is one of the most common reasons for filing for bankruptcy. A sudden reduction in monthly income of a family can drastically alter its financial balance. They would most probably lose their insurance cover and hence medical bills will mount. Bankruptcy can help such families to regain financial confidence.
• Bankruptcy puts a stay on all creditors trying to collect debts. Thus you can prevent harassment by creditors by filing for bankruptcy. Thus you won’t be tortured by abusive behavior, harassing phone calls and other inappropriate conduct from creditors.
• Bankruptcy does not discharge student loans but they are consolidated, such that they can be paid off through monthly payments in a chapter 13 bankruptcy plan.
• Wage garnishment is stopped on filing for bankruptcy. Thus you would no longer be left with any earnings to meet daily expenses. Chapter 7 bankruptcy allows you to buy necessities.
• Bankruptcy would make all fraudulent creditors accountable for the debt they claim is owed by debtor.
• Most of these reasons overlap such that a foreclosure threat would also mean that utility bills are pending. Thus bankruptcy filing can ensure that utility company does not leave you in the dark.

You need to approach a good bankruptcy attorney prior to making this important decision.

Our bankruptcy firm is based in Columbus, GA. Our lawyers handle debt relief cases in and around Columbus, Fort Benning, Chattahoochee County, Harris County, Marion County, Muscogee County, Lagrange, Albany, Newnan, Peachtree City, Carrollton, Troup County.