Despite the fact that bankruptcy is known for its negative effect, somehow it can be a right option for anyone’s financial struggle. As a matter of fact, it can help individuals in different ways and the lists below are some good reasons to file for bankruptcy. If you have any question about bankruptcy preparer services, please call +1 877-247-7003 for a free case evaluation.
Good Reasons to File for Bankruptcy
Last Minute Option to Stop Foreclosure
If a person is facing a foreclosure in the next couple of days, bankruptcy can save some properties like home. Eventually, Chapter 13 will keep your home by resolving debt through a repayment plan.
Stops Repossession of Car
If a person falls behind on car loan payments, the creditor has the right the repossess the vehicle and sell it to anyone after a given period of time. With the help of Chapter 13 bankruptcy, it will eventually stop the repossession and allow the person to recover the car that has been claimed but not sold and will come up with a payment plan to make it up with the previous debt. Depending on what car have been purchased, bankruptcy may allow a person to lower repayments by adjusting the value of the vehicle to the present market value. Thus, allowing the payment to be covered for a long period of time.
Erase IRS Taxes
Through Bankruptcy filing, it discharges the IRS taxes. Chapter 13 enables a person to pay the debt for over 3 to 5 years while freezing the interest and high penalties.
Eliminate Unsecured Debt
Filing for bankruptcy will eliminate all types of credit card debt.
Eliminate Medical Bills
Unpredictable accidents or medical condition can cause a financial struggle. Medical bills can quickly wipe out all the savings you have. With bankruptcy help, it allows the person to eliminate or reduce debt coming from medical bills, surgery, hospitalization and more.
Bankruptcy can also stop lawsuit and garnishments. If you do not have enough money to live on in a daily basis, bankruptcy could be the right option for you.
Stops Creditors Harassment
Phone calls can be really annoying. During bankruptcy process, creditors are not allowed to contact you via phone or email. As a matter of fact, if they intentionally contacted you especially when you have received a discharge, they may be facing repercussions which includes paying back all the damages that caused you.
Get Back on Track after Losing an Employment
Losing a job can be really difficult and eventually lead to overwhelming debt due to daily expenses and other bills. Bankruptcy is able to get you back on track by reducing or eliminating these debt payments and create a new payment plan for you to be able to catch up on some important assets like car or house payments.
Able to Get Fresh Start
Most people do not realize that the negative impact on the credit report stays there for many years until they are paid, settled or discharged with the help of bankruptcy. The recovery period can only start when all these debts are settled. Even though the bankruptcy record may last for about 7 to 10 years, you never realized that you actually starting to rebuild your credit score as soon as your case is filed.
The truth is, bankruptcy can lessen the burden of your financial situations. If any of the following above applies to you, take the first step by calling or sending us an email to assist you with bankruptcy document preparer. Don’t let the financial difficulty keep you from living freely and happily.