ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
19.07.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


Top Ten Reasons to File Bankruptcy

Author: Sslowrey Author Ranking Blue | Posted: 12-09-2005 | Comments: 0 | Views: 108 | Rating:  (50) Article Popularity - Green (?) Got a Question? Ask.
Sign Up Now!

1. Eliminate the legal obligation to pay many of your debts.. This process of wiping the slate clean is called a discharge of debts. The goal of a discharge is to reduce debt to give you a fresh start. Whether it is through straight bankruptcy (Chapter 7 Bankruptcy) or through reorganization (Chapter 13 Bankruptcy), most or all of your debts can be cleared.

2. Stop foreclosure on you house and allow you to effectively make payments to catch up on missed payments of your mortgage. If your home is in foreclosure, Chapter 13 Bankruptcy will stop the foreclosure any time prior to the sale. Bankruptcy does not eliminate mortgages on your property without payment. Rather, bankruptcy will structure a plan in order to repay your mortgage arrears (the amount that you are behind). <stop foreclosure>

3. Prevent your car or other property from being repossessed.

Even if the creditor has repossessed your car, filing bankruptcy can effectively force them to return your car or other personal property (if the bankruptcy is filed quickly enough). The past payments you have missed will be consolidated into your Chapter 13 Bankruptcy plan. After this you will no longer pay the finance company, rather you will make monthly payments to the trustee of your Chapter 13 Bankruptcy who will then pay the finance company.

4. Reduce or even eliminate high medical bills.

Sometimes an unfortunate accident or major recently discovered illness can completely ruin a family. Many families have to make choices on allocation of bills. Often, bills that were once important become insignificant to the large medical bills acquired by a loved one. Filing Chapter 7 bankruptcy can greatly reduce the amount of medical bills. 5. Recent loss of employment.

Studies show that loss of work is one of the most common reasons people file for bankruptcy. This is very easy to see. A family can get comfortable on two maybe even one salary. They can take on regular amount of debts, join clubs, and pay normal bills with relative ease. All of a sudden one or both spouses lose a job and a family must go from two salaries to one. Losing a job is closely tied to high medical bills. Losing a job means this family may be left without the protection of insurance that was once provided by their employer. Often times these two factors combined create an almost impossible mountain to climb without the help of bankruptcy.

6. Stop harassing behavior from creditors.

Some creditors do not always take the right course of action when attempting to collect a debt. Often, creditors will persistently call the home of a particular debtor with demeaning and abusive behavior. Not only is this unethical it can rise to the level of unlawful. In essence, bankruptcy will put on hold the demands of many creditors and stop the harassing phone calls and other inappropriate behavior all together.

7. Restore or prevent your utilities from being shut off.

As you have probably seen many of these reasons overlap. Some lead to another. If your home is in risk of foreclosure then your utility bill may also be in risk of being terminated. Filing bankruptcy can prevent the utility company from leaving you in the dark.

8. Provide help for large amounts of student loan debt. <student loans>

While it is true that your student loans will not be eliminated like several other types of unsecured debt, bankruptcy can consolidate your student loan debt. This consolidation will allow a debtor to make monthly payments through Chapter 13 Bankruptcy that are within the financial ability of the debtor.

9. End wage garnishments.

Chapter 7 Bankruptcy will stop wage garnishment. Wage garnishment basically takes away your weekly earnings often times leaving you without necessities. Chapter 7 Bankruptcy allows you to purchase necessities for you and your family. Chapter 13 Bankruptcy will also help in this regard.

10. Challenge certain claims of fraudulent creditors.

Bankruptcy will allow you to challenge these claims from creditors who are trying to collect more money from you than you really owe. An attorney can provide the support and the backing you will need to step up to these creditors. Attorneys often even the playing field between a big creditor and a single debtor. Filing bankruptcy with an attorney can stop fraudulent reporting by a creditor.

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Source: http://www.articlesbase.com/debt-consolidation-articles/top-ten-reasons-to-file-bankruptcy-820.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:
Original content from bankruptcyhome.com We can help you find a Dallas Bankruptcy Lawyer can contact at siteadmin@bankruptcyhome.com
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Related Articles

Top Ten Reasons People File for Bankruptcy
By: Bankruptcy Home | 12/09/2005 | Debt Consolidation
Whether it is through straight bankruptcy (Chapter 7 Bankruptcy) or through reorganization (Chapter 13 Bankruptcy), most or all of your debts can be cleared. 2. Stop.

What is Mach90?
By: Terry Carter | 07/11/2005 | Direct Mail
Mach90 - If you're serious about becoming financially independent, obviously the best way to do it is to be in business for yourself. Once you know that, all you have to do is find the right vehicle.

Goal Setting Time! Where Do I Start?
By: Marnie E. Green | 18/09/2005 | Management
See goal setting as the opportunity to list the classes the employee will attend for the coming year. And, while learning goals are appropriate, the goal setting process can.

Practical Advices to Get Slim
By: Knut Holt | 11/03/2007 | Weight Loss
Many people fail in their slimming process because they consume a lot more fat and sugar than they know about. Here are some practical advices about how you can get absolute control of your food consume and lifestyle to successfully get slim.

Inside Insurance - Protection Priorities
By: Rachel Lane | 25/09/2005 | Finance
Protecting your home Although you have no legal obligation to insure your home, your mortgage company will want to protect their investment with buildings insurance.

Finding Cheap Bankruptcy Lawyers For You
By: Ryan Arsendatama | 06/03/2007 | Finance
If you are in a serious and genuine financial problem, the right thing to do is file for bankruptcy. But before you do that you would have to find yourself a cheap bankruptcy lawyer who can explain to you all the finer points of the new law and can get you a good deal.

Debt Consolidation Loans - The Benefits of Consolidating Debts With A Loan
By: Joseph Kenny | 09/03/2006 | Finance
With the huge increases in consumer debt we have been seeing in the financial market during the past couple of years, it really is not surprising that more and more people are having to opt for debt consolidation loans.

Get in Control of Your Credit Card Debt
By: Michael D. Strauss | 30/05/2006 | Credit
Using credit cards can make day to day life more simple, reducing the need to carry cash and making it easy to shop online and by telephone. However, spending with plastic can sometimes be a little too easy, and many people find their balances get out of control.

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

Have you heard of legal wire tapping? Like going ...
By: Laura | 11-07-2008
Have you heard of legal wire tapping? Like going to court and asking the judge the grant wire tapping if you are concern for your chilod.

Suppose you have debt can the person you owe money ...
By: Cathey | 10-07-2008
Suppose you have debt can the person you owe money too attack a joint checking account if that is all the money that goes in the account is from socail security?

Single mom needing financial help with bills, rent, car payment due to caring for my son that has mentally disabilites and has just started treatment
By: Sherry | 10-07-2008
income eligibility for financial aid for bills from the red cross help in Utah Need help paying bills, car payments and rent for single mom with soon with mental disabilities

Privat Criminal Complaint-Dauphin County, PA
By: Cathi | 09-07-2008
I have recently been served with a notice of Private Criminal Complaint.  The reason for this is that I did not file local taxes in Dauphin County where I lived.  I was totally unaware that this was mandatory as I am from Philadelphia.  I don't know what the repercussions are for pleading guilty.  I do not want to have any kind of record, especially in my line of work.  Should I consult an attorney or just plead guilty and file my taxes?

Theft of Services Hennepin county MN
By: wedamaweda | 09-07-2008
I had a bench warrant issued for Theft of Services (Hennepin county, MN) for a bad check for $240. to a company. I was unaware of the warrant & arrested during a trffic stop 2 weeks ago. I, from there, learned of the charge & received a court date. I am wondering what to expect to happen in court. I am SO nervous, as I haven't been in this kind of situation before. I am wondering...-Can I call & ask for a new date, as the date I have now doesn't work? Or does that look bad for me?-Is there ANY chance I will get jail time? This is one of my BIGGEST fears.-Will I have to pay the $240. fine & court costs that day or will I get time to pay?

Why should I pay an unreasonable fee or full fee ...
By: Romeesq | 08-07-2008
why should I pay an unreasonable fee or full fee based on a performance contract or fee services agreement, just for time expended but no favorable result obtained?

Q&A Powered by:
Powered by Yedda 

Latest Debt Consolidation Articles

Discover How to Consolidate Bills Quickly and Effectively
By: Abhinav Sidana | 19/07/2008
People say that bills are part of almost everyone’s life. That’s true. No matter how rich or famous you are, you will still be compelled to pay your bills. Sometimes, the richer you are, the bigger your bills are. But even if everybody is as indebted as you are, it does not mean that it’s all right to feel suffocated as your payables pile higher and higher.

Debtors are a Risk for Business
By: gcs-group | 17/07/2008
Any business that wants to expand will find itself having to offer credit to its customers either private or corporate.As with all risks this risk of having debtors not pay their accounts can be managed and the Risk Manager’s of this risk are Credit Managers and / or Credit Staff and Debt Collectors.

Christian Debt Consolidation: an Ethical Way to Reduce the Debts
By: Tom Frederick | 17/07/2008
Ensure a divine life for yourself with Christian debt consolidation loan package.

Debt Consolidation Agents Need to be Supervised
By: Melissa Kellett | 16/07/2008
Debt consolidation is a complex process and the aid of professionals is almost always needed. However, it is smart not to confide too much on the consolidation agents and keep an eye on whatever they do with your debt. A proper supervision of their work can save you a lot of trouble and probably money too.

Common Mistakes When Hiring Debt Services
By: Melissa Kellett | 16/07/2008
Most people who need to resort to some kind of debt relief aid, lack the information necessary to make conscious decisions. This eventually leads them to making serious mistakes when choosing debt services and sometimes their situation worsens due to these mistakes. If you debt has gone out of hands and you need aid in solving your problems read on. Here you will find the basics to avoid these common mistakes.

California Debt Management
By: Ronnica Rothe | 16/07/2008
The state of California allows for debt management to be done both by for-profit and nonprofit companies. This allows Californians to have access to a wide range of credit counselors. Wisdom will need to be exercised to avoid falling into the hands of someone who does not have your interest at heart.

Ways to Negotiate Debt Settlement
By: Christina Costa | 16/07/2008
Are you looking for ways to get out of debt? Not sure where to start? There are many possible ways to negotiate debt settlement. What is important to remember, is that each person and their debt is different. Make sure you do what is best for you!

Tips For Getting Out of Debt
By: Christina Costa | 16/07/2008
Many people find themselves in debt, yet very few know how to get out of it. Whether you decide to do it on your own or turn to a debt settlement company, there are a few things you must think about first!

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below