Your spouse got fired so the monthly income of your family is now reduced to half. You had tough time managing by slashing through extra expenses when your kid got hospitalized. Those past bills are piling up and so are the notices from your creditors. You were on the verge of getting a heart attack when you got threatening letters to foreclosure.

You decided to rely on those so called non profit debt settling services. They promised to offer you lowered interest rates on due bills. But after paying the debt counseling company, your debt kept on mounting. All those claims suddenly start to seem hollow and you feel it was all a big scam to push you towards bankruptcy. Long story short, there are different reasons for filling bankruptcy. In fact, when you land up in those situations, file for bankruptcy rather than waiting and bearing more financial damage.

Stops Foreclosure

After paying mortgage for so long, you can’t bear to lose your home through foreclosure. When you file bankruptcy chapter 13, the foreclosure will be stopped before the sale of your property. After filing bankruptcy, you will get a plan structure which will help you repay the mortgage arrears.

Sets You Free From Debt

You will opt for bankruptcy when the burden of legal obligation of debts gets too high. It will discharge off all debts like wiping a slate clean so that you can have a fresh start. Whether you file chapter 7 bankruptcy or chapter 13, there is likelihood that you will clear most of your debts.

Avoid Other Property From Getting Repossessed

If you have been fast in taking the decision to file bankruptcy, you can prevent your creditor from repossessing your car or any other property. The payments you have missed in the past will get settled in chapter 13 bankruptcy plan. Under this plan, you will be paying to the trustee of bankruptcy and you will no longer be dealing with your finance company.

Reduce/Eliminate Medical Bills

No matter what you do, you can’t have control over mishaps or accidents. At times, a major illness acquired by one of the family member can ruin the whole family. When paying off medical bills gets out of control, you can file chapter 7 bankruptcy. This will help you reduce the burden of medical bills.

Put An End to Harassment From Creditors

If you have taken loan for some reason, your biggest fear will be to encounter your creditor when you are lagging behind in payments. Creditors are not very lenient when it comes to recollection of debt. They will keep calling you at home, during work and at all times, demanding repayment. At times, they get abusive and resort to some unethical means. Filing bankruptcy will put an end to all those harassing phone calls once and for all.

The question is, “Are you a victim of these problems”. If so, filing bankruptcy can be a way to get out of this mess. Once you have decided to go for it, consult bankruptcy attorney to discuss your case.

Author Bio: If you\’re in need of advice about bankruptcy, visit Bankruptcy District Court For additional information on bankruptcy laws.

Category: Finances
Keywords: bankruptcy laws, chapter 13 bankruptcy explained, bankruptcy information, bankruptcy