Declaring bankruptcy will discharge debt and allow for a new start. Actually it’s a very tough decision, but for many, bankruptcy can provide necessary relief from debt. According to a survey, people declaring for bankruptcy is increasing over the past years.: While every case is unique, here are some of the most common reasons individuals choose to declare for bankruptcy.
Many opt for a bankruptcy filing to eliminate all legal obligations towards debts. Bankruptcy lets 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 will let them to resume and catch up of missed payments as well as save their property from being foreclosed. Bankruptcy will 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. Declaring for chapter 7 bankruptcies can aid in reducing medial bills incurred.
Loss of work is one of the most common reasons for declaring bankruptcy. A sudden diminution in monthly income of a family can drastically alter its financial balance. Most probably they would lose their insurance cover and hence medical bills will mount. Bankruptcy can help them to regain financial confidence.
Bankruptcy will put a stay on all creditors trying to collect debts. Thus you can prevent harassment caused by the creditors just by filing for bankruptcy. Thus you won’t be annoyed by abusive behavior, harassing phone calls and other inappropriate conduct from creditors.
Bankruptcy won’t 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 take on daily expenses. Chapter 7 bankruptcy allows you to buy necessities.
Bankruptcy would make each and every fraudulent creditors accountable for the debt they claim is owed by debtor.
Most of these reasons intersect 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 should approach a good bankruptcy attorney prior to making this important decision. Here at JLMartin Law, Our lawyers handle debt relief cases in and around Las vegas.
For more details about Bankruptcy in Utah
The Law Offices of JL Martin is a Debt Relief law firm as defined by 11 U.S.C. 528. We help people file for Bankruptcy Relief under the Bankruptcy Code. The information contained on this website is not to be construed as legal advice. It is not intended to solicit or form an attorney-client relationship. We do not guarantee any result and prior results do not guarantee a similar outcome. This is an attorney advertisement and this website is for informational purposes only