Top Reasons for filling bankruptcy

Each passing day, recently, has the amount of folk filling bankruptcy rising. There are numerous reasons why folks seek these services. Some are for job loss, drop off in pay, or increase in debt payments. Bankruptcy can be a agonising process that requires talents to successful apply. Contracting an solicitor will make the method way easier.

If you're considering filing for bankruptcy, you may be interested to know some of the top arguments to file. There are many individuals that are undergoing difficult money times. If you are burdened by a mortgage, you can make an application for bankruptcy to keep your house.

If you fail to file for bankruptcy and you do not have sufficient cash to pay for the mortgage, you are likely to lose the house. Chapter 13 will give you protection against that. All that you need is to hire a bankruptcy attorney to help you. He or she will be very useful in restructuring your arrears to make them simpler to repay. When you petition for chapter 13, you'll defend your house from foreclosure.

There are numerous law companies that have specialized in bankruptcy petitioning. They are those that you need to hire for your filing. If you are a home owner, you can leave the lights on by filing bankruptcy. Because of the overpowering electricity bills you'll have amassed, you will be in danger of having your power disconnected.

To be on the safe side, it is great that you file for bankruptcy well in advance. This is the sole way through which you can avoid falling into massive depression. The whole process can be rather boring but at the end the benefits will be plenty of. It will save your credit report in most cases, so you will be in a position to secure your credit arrangements in the future.

Paul Mascia, founder and CEO of The Mascia Legal Company, spends a lot of his time assisting those affected by the most recent debt and house crisis.

21 Replies to “Top Reasons for filling bankruptcy”

  1. When one’s expenditure far exceeds one’s income and there is no hope in turning things around, then the only possible avenue out of this dilemma is to file for bankruptcy. This highly informative articles reveals to us the many ways one can go about in filing for bankruptcy.

  2. Bankruptcy can be really difficult to handle and if you are going through this process then it is good to seek advise of a qualified lawyer who can walk you through the process. There is such a minefield of information out there and at first it will not make sense but if you talk to some-one who knows how to tread the water well then the process should be hassle free. Of course with bankruptcy come the credit problems and how it is going to affect your financial reputation, but you will get there in the end.

  3. there are also many businessmen who use bankruptcy as a planned tool to save themselves. the govt should have strong laws to safeguarding.

  4. I have a close friend who is in a bad position and from reading this, bankruptcy might be a good option for him. I’m going to send him the article and hope that he reads it, but it can be hard to speak with friends about money problems, especially bankruptcy.

  5. Does anyone know how long it would mess up your credit history? Seems like it would follow for a long time.

    1. Good question Matt. In the US, bankruptcy stays on your credit for up to 10 years. However, many people that have gone through this report that they still get credit offers and other credit rebuilding opportunities during this time due to their now “clean slate”. Either way, bankruptcy should be a last resort decision that is thoroughly considered from all angles.

  6. Bankrupcy can really be a kick in the crutch, but sometimes you just have to face some facts, sometimes you have to give up a battle in order to win de war.

  7. One should try all other ways to pay their mortgage before going for this option because it can affect their credit history really bad.

  8. it depends the right time for applying it in right time.Once we cross a time limit I think it would be difficult.Also I think the institutions to which we are indebted may try to block or challenge our bankruptcy application.But it would be nice if we able to get we have no other option to pay off our debts so as to protect our shelter

  9. But if bankruptcy is approved will it be possible to continue with our financial transactions and facilities again atleast for certian years.Also the law will monitor the future dealings of persons approved bankruptcy? Applicable to only certain countries?

    1. Great questions Beena, hopefully the following helps.

      Q: If bankruptcy is approved will it be possible to continue with our financial transactions and facilities again atleast for certian years.

      A: Limits may be placed on some of your financial abilities for a period of time, such as the use of credit cards, or other accounts that you’ve included in your bankruptcy.

      Q: Also the law will monitor the future dealings of persons approved bankruptcy?

      A: Yes, bankruptcy is a court procedure; it will be monitored.

      Q: Applicable to only certain countries?

      A: Bankruptcy laws change from country to country – and some countries may not even provide it as an option, or may call it something other than bankruptcy, so it’s best to check with the laws and financial authorities of your country. But as far as the US & Canada, bankruptcy is surely a debt resolution option.

  10. personal bankruptcy? i’m not sure it applies in some other countries, however I’m fully aware of bankruptcy in business.

  11. Ive never owned a home yet. So information like this is always real helpful. I would add this to an emergency plan along with home insurance.

  12. Declaration of personal bankruptcy is almost impossible in many countries. Instead, the credit societies and cooperative banks are many times doing so, by distributing loans to the ineligible folks.

  13. I just hope people in serious financial probmlems get access to this blog and also to the Experts. However I don’t think that filling for personal bankruptcy is possible in all countries, please let me know if I am wrong. We get reports of a lot of businessmen even farmers committing suicide in India due to financial insolvency. Hence if it is possible to file for personal bankruptcy a lot of lives would be saved.

    1. There should always be some type of debt counseling or debt assistance program in every country, maybe not bankruptcy (or could be called something different in some areas), but there should no doubt be some program(s) to help citizens with debt no matter which county you live in. You should seriously check into this in your local area. Be sure to check profession service providers and government assistance programs. There should be something.

  14. This article is very good to protect someone who broke so not all-out. Especially for people who still have family dependents.

  15. Bankruptcy is a consequence of business. To minimize the risk of bankruptcy, there must be careful planning prior to running a business.

    1. Thanks for your comment Willy. Actually, bankruptcy is not something that’s only reserved for business people, there are personal bankruptcy programs as well.

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