5 Reasons People File Bankruptcy

1. Prevent foreclosure on your home

Filing for bankruptcy may not make the mortgage on your property go away. However, it will help you plan how to repay the amount that you are behind on. With this, you can properly organize your funds and deal with the more important problems first.

2. Minimizing Medical Costs

Unexpected accidents or major illness can destroy your finances. Depending on the illness you could easily incur up to $100,000 or more in charges. When people get into this sticky situation, they have to decide and prioritize over which bills can be paid. Chapter 7 bankruptcy reduces medical bills and in some cases can possibly eliminate them.

3. Sudden Unemployment

Losing a job is a very common reason for people to file for bankruptcy. The sudden loss of income spells trouble for the family financially. It is bad enough if you lose one source of income and are left with one person earning the money – it is much worse if the sole breadwinner is the one who loses the job. Filing for bankruptcy could very well be your only option.

4. Stop repossession of vehicle

Filing for bankruptcy can force the creditor to give back your repossessed vehicle. When Chapter 13 bankruptcy has been filed, the missed payments in the past are consolidated into your bankruptcy plan. You can even
have any of the repossession fees added into the consolidation process in many of the bankruptcy cases.

5. Halt the Assault from Creditors

Creditors don’t always collect debt in the proper way, becoming even abusive at times. This is not only unethical but also unnecessary. If you file for bankruptcy you will have a hold on your account, and the phone calls will stop.

If you’re considering bankruptcy, call us today to set up a free consultation by calling 312-273-1217. All of our 7 Chicagoland offices has free parking and night/weekend appointments available. Call today!

 

By Kerrie Neal