9 Problems That Can Go Away When Filing Bankruptcy

Despite the bad reputation that is often been associated with bankruptcy, there is no doubt that bankruptcy is still the best option for most of your financial difficulties. Here are 9 out of many problems that can be solved when filing bankruptcy.

 

Foreclosure

You could soon be facing foreclosure if you are behind on your mortgage payments. Filing bankruptcy (Chapter 13) can help you stop the foreclosure and assist you in structuring a payment plan that can help you meet up with your mortgage payments.

 

Repossession

You car creditor has the legal backing to repossess your vehicle and even go ahead to sell it if you fall behind on your car payments. Filing for a Chapter 13 bankruptcy will either allow you to retrieve your repossessed car that has not yet been sold or stop the repossession efforts.

 

IRS taxes

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Some older IRS taxes can be eliminated through bankruptcy with newer IRS tax debt. While freezing the high IRS interest and penalties, you can be allowed to repay the debt over a period of 3 – 5 years by filing bankruptcy.

 

Credit Card and Other Unsecured Debt

An abrupt end can be put to those never ending credit card payments if you file bankruptcy. Complete relief from these debts can be achieved in Chapter 7 if you qualify for a complete discharge of your credit card debt. However, depending on your monthly income and your ability to pay, you will be required to pay a portion of all your credit card debt through your repayment plan if you file Chapter 13 bankruptcy.

 

Medical Debt

Your finances can be severely affected by unforeseen accident or illness. To this effect, your savings or disposable income can be completely wiped out through payments on medical debts that have piled up so quickly. A great deal of debts owed for hospital stays, medical procedures, and bills can be eliminated through bankruptcy.

 

Collections Lawsuits, Judgments, and Garnishments

Bankruptcy filing will stop any collections lawsuits, garnishment or judgments. This also includes any student loan garnishments or IRS. Bankruptcy is the best answer to any paycheck that is garnished and as a result, there is not money to sustain life.

 

Harassing Phone Calls from Creditors

26a1Creditors may no longer be able to contact you by mail or by phone when you have filed bankruptcy. Evidently, they could face serious repercussions if by any means you are contacted after being discharged from bankruptcy, as it could lead to the payment of damages back to you.

 

 

Fraudulent Debt Negotiation Services

As a court-mandated and trustee managed process, bankruptcy allows you to either re-organize or discharge your debts. So, you are not at any risk of losing your money to a fraudulent debt settlement company since your creditors are obliged to participate.

 

Get Back On Your Financial Feet

You can achieve a fresh start from bankruptcy filing as it helps to reduce and eliminate unsecured debt payments and establish a new plan for you to catch up on your payments.

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