People file bankruptcy for many different reasons. In most instances, the factors that led to the need to seek the protection of the bankruptcy court are similar, but the reasons people file for bankruptcy are very different. For example, a common cause of the need to file is loss of job or a severe medical condition that led to an accumulation of medical debt. But, the reasons people file for bankruptcy are not this cut and dried.
The top ten reasons to file bankruptcy include:
- To stop a wage garnishment. When bankruptcy is filed any pending wage garnishment must be immediately withdrawn, which means your paycheck will no longer be subject to any additional withholding for payment to a creditor.
- To stop a foreclosure on your home. Just like a wage garnishment has to immediately cease when bankruptcy is filed, so do foreclosure efforts.
- To prevent a repossession. If one of your lenders is currently trying to repossess your car or another piece of personal property, that effort has to come to an end when bankruptcy gets filed.
- To get the tax man off your back. While taxes are not debts you can eliminate through bankruptcy, filing does give you a chance to figure out a way to repay your tax liability.
- To eliminate high interest rate debt, like credit card debts. Bankruptcy is a very real option for dealing with too much credit debt.
- To save a family owned business. Many small business owners have had to look to bankruptcy to save their business. Most smaller business entities are loosely formed, and the owners and operators can sometimes end up getting their personal finances intertwined with business debt. Bankruptcy can help sort out these mixed finances.
- To reorganize debt. Businesses and consumers alike can reorganize their debt by filing bankruptcy.
- To quickly handle an overwhelming debt load. A chapter 7 case is usually completed in between 4 and 6 months. This quick turnaround time is an incentive for overburdened consumer debtors to file bankruptcy.
- To be able to maintain the ability to support your family, especially if two households are now part of your obligation due to divorce or separation. This is not to say that you are able to eliminate certain support obligations, but sometimes bankruptcy is a natural result of the end of a marriage.
- To make clear what obligations are yours personally versus those of a corporation. In some business arrangements a personal guarantee is a necessary part of financing, and bankruptcy can help protect your personal assets in the face of a bad business decision.
Whatever your need, we can help you find a solution. Call us today to find out more about how bankruptcy can help you.
For more information about bankruptcy and how to have a successful case, contact us at www.DsouzaLegalGroup.com. Our approach is individually tailored to meet your needs, so you can reach your financial goals.