When your financial situation gets to a point where it can no longer be managed and you have more bills that are due than the income you bring in, then bankruptcy might be something to consider.
You may want to speak with a lawyer like Wilson Neely to make sure you are making the right decision. There are numerous reasons why someone would file, and there are a few different kinds of bankruptcy depending on how much debt you have.
Filing bankruptcy will eliminate the legal aspect of your debts. The process is called discharging the debts. Most of the debts that you have will be cleared so that you won’t have to deal with the ramifications of past due bills and creditors.
Your debts are cleared whether you file for Chapter 7 or 13 bankruptcy. If you file for Chapter 13, then you can stop the foreclosure process on your home. A plan will be put in place so that you can pay the arrears on the mortgage.
In the event that your car has been repossessed, filing Chapter 13 will force the dealership or credit agency to return your car. This has to be done quickly, or you could risk losing your car because the paperwork hasn’t been submitted to the dealership. You will no longer pay anything to the company with the car. Payments will be made to a trustee of your account.
If you are like most people, then you have medical bills that you might not be able to pay. Filing bankruptcy will drastically decrease the number of bills that you have or eliminate them completely.
This is ideal for those who have seen emergencies in the family and need medical attention but don’t have the insurance coverage to pay the bill or get the medicines needed. Some will neglect other bills in order to pay the hospital bills and take care of the family member. This can lead to losing a home, car or getting utilities disconnected.
Losing a job might be a reason that you would file bankruptcy. When you file, you will see that the stress of all of the bills that you had will go away. This can help in your search for a new job because you won’t have the financial obligations that you had. When you lose a job, you might not have health coverage, which means that you would get further in debt by getting a doctor or hospital to bill you for treatment.
Creditors won’t be able to call you, although some will try. If they continue to call after they know that you have filed for bankruptcy, then you can report the company. Your utilities won’t get shut off, and you will essentially be able to start over with your family in a new financial aspect. Bankruptcy gives you an opportunity to get caught up on bills and save money for emergencies and things that your family will need.