How do you recover when you are in debts? Perhaps filing bankruptcy is the best solution the government has to offer in these intense situations. If you’re an US citizen, you can file bankruptcy in two ways- Chapter 7 and Chapter 13.
So when should you file bankruptcy. Let us analyse such circumstances.
- Debt-ridden situation is not something you would desire to be in. So in order to avoid such a situation one should always try to pay all his/her debts and if that corresponds to filing bankruptcy, why not?
- Foreclosure imposed on you by your creditor is a difficult situation to handle and may degrade your overall credit rating. In order to avoid foreclosure you should discharge of all your debts. Filing bankruptcy offers you avenues to restructure your plans to pay any mortgages or debts on a timely basis.
- Creditors or banks can also repossess your car or property (taken on loans and unable to pay back) in detrimental situations. So this gives you another reason to file bankruptcy and get your payments done in an orderly manner.
- As there are no hard and fast rules to eliminate the unforeseen circumstances in life, especially accidents or other diseases, you can always see people queuing up in hospital or clinics to get treated. On most occasions the cost is treatment is tremendous. And you make choices to seek help from creditors or pay using credit cards. And using credit cards can lead to uncontrolled spending and thus mounting huge bills. This gives you another reason to file bankruptcy,
- Unemployment is one discrepancy that leads to a chain of events where you falter upon paying your regular bills or payments. Therefore, getting back to a regular lifestyle might not be possible until you clear all your outstanding bills. And in such a situation, filing bankruptcy might help.
- Once you owe any money to a creditor, you start getting reminding calls regarding payments on due date. And if you have already delayed making payments, it keeps adding onto the actual debt amount. So in order to avoid any kind of harassment from such creditors you should file bankruptcy.
- If you’re indebted to your utilities companies, and you do not pay off your payments on time, there are chances that such companies cut off their services to you. To regain access to your utilities you might have to strive hard. Therefore if you’ve already filed bankruptcy, you can save yourself from losing out on such services.
- If you aspire for further studies you can find various creditors to offer you loans. There could be a possibility that you borrow a huge student loan amount and later it might seem difficult to pay it off in the prescribed duration. Filing bankruptcy helps you pay your student loan amount in a consolidated manner.
- f you are someone paying monthly wage garnishments from your monthly earnings especially due to court order sought by your creditor. And you may find it difficult to take care of your monthly expenses. You can still file bankruptcy to regain normalcy and purchase the necessary items for you and family and thus face your wage garnishment with ease.
- Another reason why you get indebted to various creditors is because you are being charged more than your borrowed amount by certain creditors who act fraudulently. Filing bankruptcy envisions you to deal with such creditors and stop these creditors to perform illegally.
Global Banking & Finance Review
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