Bankruptcy is likely more common than it ought to be, but there are a number of top reasons as to why individuals are often forced to file for Bankruptcy. The top 5 reasons many people file for bankruptcy are loss of employment, high medical debts, the desire to prevent property from being repossessed, the desire to prevent foreclosure and in order to end wage garnishments. In these situations, filing for Bankruptcy can help you to keep some financial control over your life.

Loss of Employment

Loss of employment is one of the most common reasons that you can file for bankruptcy. Having employment will often allow you to live comfortably and take on a particular amount of debt, such as that which would be incurred through vehicle or home loans. Losing the income that allows for these debts can be devastating for families. In addition to debt, a loss of employment can also lead to a loss of insurance which often prompts a downward spiral for families that can be stopped and potentially controlled when you file for bankruptcy.

High Medical Debts

In many cases, families will need to make decisions on how to allocate the payment of medical bills when there is an unplanned major accident or serious illness discovery. Chapter 7 Bankruptcy filing can help you to reduce the amount that you will need to pay when it comes to high medical bills.

Prevent Property From Being Repossessed

Even in the event that your car has been repossessed, if you file for bankruptcy this motion can very often force the creditor to return your vehicle to you. Past payments that you may have missed will be consolidated in a Chapter 13 Bankruptcy repayment plan and you will no longer be required to make payments to the finance company, but rather to your Bankruptcy Trustee, who will then pass the money on to the finance company.

Prevent Foreclosure

If your home is in the process of being foreclosed upon, filing for Chapter 13 Bankruptcy will be able to stop the foreclosure any time prior to the sale of the residency. This form of Bankruptcy will structure a repayment plan in order to help you catch up on their mortgage payment and the amount of money that you are behind in your mortgage.

End Wage Garnishments

Filing for Chapter 7 Bankruptcy will end wage garnishments. Wage garnishments can often take away from your weekly necessities that you would have otherwise used that money to fund. Chapter 13 Bankruptcy can also help you to purchase necessities for you and your family rather than having that money taken away through wage garnishment.