There are some misconceptions about filing for bankruptcy. Most people think of filing bankruptcy in a negative way. But the reality is a little different from the idealization that most of us have developed. But the bankruptcy law states something different.
For debtors, bankruptcy is really a powerful tool. But at the same time, there are some kinds of debts that one can not wipe out in bankruptcy. In spite of these things, the number of people in the US who are filing for bankruptcy is increasing.
5 Reasons Filing For Bankruptcy
As I have said earlier, the number of filing bankruptcy in the United States is on the rise. And there are several reasons behind it. Here, I will help you with 5 reasons why filing bankruptcy can be the best decision of your life.
1. Credit Problems
In recent days, getting a credit card or installment loan has become much easier. And this is the reason why more people are spending the amount of money that they do not have. And sometimes, this behavior gets out of hand.
At this time, people find out that they are failing to pay the minimum amount on these debts. A debt consolidation plan or a home equity loan can help in managing these debts for a shorter period. But eventually, people find themselves filing bankruptcy while availing of these options.
2. Loss Of Employment
It is really devastating for anyone’s personal finances to lose a job. Though they have some emergency funds or severance packages in hand, it also has been seen that job loss is one of the reasons for filing bankruptcy.
In case a job seeker finds him or herself without a stable income for a long time. Eventually, he or she will not be able to pay the bills, and it will cause them to go bankrupt.
3. Spending more Than What You Make
The road to bankruptcy starts with the simple formula, and that is, more amount of money is going out than the amount of money that is coming in. After some time, this results in missed payments along with reliance on credits.
There are also many people who do not have any savings or emergency funds. And this is the reason behind filing bankruptcy. You also can take help from a Bankruptcy Attorney Marietta GA.
4. Medical Costs
Serious illness or injuries can happen at any time to anyone. And this drains hundreds and thousands of dollars for medical bills. And after college funds, savings, home equity, and retirement accounts are wiped out; only one option is left, bankruptcy.
62% of all the bankruptcies are due to medical bills. And in reality, the people with health insurance are the majors who file bankruptcies due to medical bills.
From the start to the very end, divorce can always be an extremely expensive experience. With extremely legal fees, child support, alimony, maintaining two separate households results in a huge financial loss.
And eventually, one fails to pay the debts or alimony or the fees of child support. This results in going bankrupt and filing bankruptcy. A Bankruptcy Attorney Marietta GA, will be able to assist you here.
Benefits Of Filing Bankruptcy
Here are the advantages that come with filing bankruptcy.
- The creditors will fail to charge interests. So, your debt will be frozen at their currency amount.
- Eventually, it will prevent you from getting into another debt.
- Under the bankruptcy order, any of the creditors, you no longer be able to take any kind of legal action against you for any of the debts you are having.
- Your repayment or contribution in debt will be set by a professional of the court on a monthly basis. They will also look at your income and needs, and after that, the person will set the repayment amount.
- So, at the same time, you will be able to take care of your family and pay back the debts.
Here, many people think that filing a bankruptcy is the end. Actually, it is a new beginning for one who fails to make the debt payments. As you now know, the 5 reasons filing for bankruptcy might be the best decision of your life.