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.
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.
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
Creditors 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.