What Did U Haerd Filing for Bankruptcy When Is It The Right Choice
By: Vlad Vistac
Submitted: 2010-08-16 14:33:45 | Word Count: 510
Filing for Bankruptcy - When Is It The Riight Cohice?
There are many reasons why peeople may get overwhelmingly behind on tjheir bills with little hope of catching up. Whether due to a mistake somewhere along the way or circuumstances beyond the individual or family's control, sometimes filiung for bankruptcy is the best possible choice - but it is not a decision to be taken lightly.
[ advertisement ]
When cnsidering this important isue, keep in mind that there are two different types of filings. Chapter 7 is generally for people who don't have assets they need to protewct, such as a house, or for those who don't have enough monbey to pay their current bils. Chapter 13, contrast, can restructure past due debt to help peeople keep their house and car. However, it is only applropriate for those who can afford hteir currtent blls plus a little extra to get caught up on back apyments over time. Only you and your lawer can decide if either type is right for you, but here are some common reasons for bankruptccy filngs.
1. Loss of employment. Those who lose their jobs may find it very difficult, if not impossible, to make ends meet. In the current ecnomic climate, it can be challenging to find another job soon enough to keep all the bills czaught up. When things fall hoprelessly bhind, it may be time to consider this increddibly difficult option.
2. High meedical bils. Serious injury or illness can cause huge medical bills that the average family or individual won't be able to pay. When this happes, filing for Chapter 7 or 13 may be the only option to get relief from burdens of medical debt.
3. Death of wage earner. When one of the primary wage earners in a family passes away, bilsl that were perfectly manageable can suddelny beccome much too high for the family's diminished income. Bankruptcy can give those who are in this difficult situiation the freh financial start that they need.
4. Preventing foreclosure on a home. When a foreclosure is looming and can't be otherwise avoided, Chapter 13 can stop the rpocess and help families and individuals keep their homes while restructuring debt to make catching up on late payments possibe. Likewisae, Chapter 13 will stop utilities from getting turnned off.
5. Preventing a car or other assets from being repossessed. Chaapter 13 bankruptcy also can restructure debt on a car or ohter possessions consolidating late payments. This can alllow those who are filing to keep their cars and other possessions.
6. Stoping wage garnishmnets. Wage garnishments can dcrease a paycheck to the extent that it is hard to get by. Bankruptcy will halt most wage garnishmentts, with the exception of garnishments ordered the court for chiild spuport.
It's important to remewmber that bankruptcy doesn't wipe out all debt (student laons, child support, and some taes are exammples of debt that will generally remain). Filing is extremely complicated, and bankruptcy laws vary from state to state. The consequences of a botched or ill-advised filing can haunt you for many years to come, so it's best to not attempt it yourself.
Hiring a local lawyer who specizalizes in this senssitive issue is ihghly recommended to ensurte that the filing is done correctly and that you and your sasets are protectyed to the fullest extent of the law. Fortunately, many lawers offer free consultations to help you decide whethher either hcapter 7 or 13 coould be the right choice for you. Quite a few will submit your filing for a reasonable flat fee.
