So you’re in a financial bind? It’s safe to say that 2011 hasn’t been the best financial year for many Americans. The economy is still sluggish and jobs are still scarce. While filing for bankruptcy may have never been an option before the recession, credit card bills can stack up and unemployment checks are running out for many Americans. Filing for bankruptcy no longer has the stigma it used to, since many individuals and business owners have taken a hard hit from the recession. Not only does job loss affect your finances, but an unexpected illness or death in the family can put you and your family in a bind. Here are some of the main reasons people file for bankruptcy to help get their finances in order:
To stop Foreclosure If your lender is threatening to foreclose on you for missed payments, filing for bankruptcy can help you save your home. A Chapter 13 bankruptcy can stop the foreclosure anytime before the bank actually sells off your home. The bankruptcy will not eliminate your payment, but will help you structure it to pay off the arrears and make it a more manageable payment.
Prevent a Reposession Filing for Chapter 13 can also save your car or other possessions from being repossessed, even if the creditor has already taken them. The missed payments will be consolidated into your bankruptcy plan and you can pay them back on a more manageable schedule.
Reduce Medical Bills Medical bills are one of the biggest reasons people need to file bankruptcy. An unexpected accident can leave a family in thousands of dollars of debt. Sometimes, when the injury or illness is serious enough, the affected family member cannot return to work, losing even more income. Chapter 7 bankruptcy, known as a liquidation, can help you reduce these bills.
Extended Unemployment The recession has proved that no job is ever as secure as we may think. Losing a job, and a steady paycheck can turn your finances upside down. Many families acquire debts and expenses as they continue to work hard and maintain their lifestyle. It may be houses, cars, gym memberships, clubs and activities for their kids, whatever it is, they have monthly expenses that their salary needs to cover. Losing your job abruptly, and without a severance can put your family into panic mode. Unemployment doesn’t last long, and for many people, it’s only a fraction of the salary they were taking home.
There’s no shame in filing for bankruptcy to help get your life back on track. Some people even need to file to stop harassing creditors and to end wage garnishments. If you’re feeling overwhelmed by your finances, filing for bankruptcy may be the answer you’re looking for. Please contact a Brownsville bankruptcy attorney as soon as possible to find out if bankruptcy is right for you.
About the Author: Jeff Davis is the Owner of the Davis law firm and a highly experienced Brownsville bankruptcy attorney. To find out more information about a Rio Grande Valley bankruptcy lawyer, please visit www.jeffdavislawfirm.com.