Bankruptcy Is More Typical Than You Think

Filing for bankruptcy can be a stressful, life-shaping decision.  With the rough economic years our country has had, bankruptcy has become more normal than ever before.  There are a number of reasons that consumers opt to file for bankruptcy.  You are not alone if this is a route that you are deliberating.  Lowering or eliminating big medical bills, car repossessions, and credit card debt are a few of the issues bankruptcy can do.  These types of difficulties are common financial problems that many people share.

The recent loss of employment is the most standard reason that people are forced to file for bankruptcy. Most homes survive today on a two salary income. When one person loses their job, it can become tough to pay for a mortgage, cars, credit and household bills.  A very normal occurrence is the loss of medical insurance with your job.  This can cause you a large amount of problems and debt, as medical charges can add up quickly.  Sometimes medical debt isn’t something you plan for, and proclaiming Chapter 7 can help you greatly reduce this debt.



Residence foreclosures and auto repossessions are another common reason most consumers file for bankruptcy.  Chapter 13 helps you end your home foreclosure, and allows you to set up a new payment plan with your bank.  Bankruptcy does not mean you get out of mortgage payments, though.  If your car is repossessed, filing for bankruptcy quick enough can force them to return the vehicle directly to you.  Consolidate any late payments while restructuring your payment program through Chapter 13.  You most likely won’t deal personally with your credit company, as an appointed trustee will do this for you.

For most consumers, credit card debt is a massive problem. Your credit card debt can be completely cleared out by claiming bankruptcy.  More importantly, declaring can get unethical, harassing creditors off your back.  Unethical means are often used by credit collectors to try and get payment from you.  You may also find some collectors trying to get more than what you really owe them.  You will need the aid of a lawyer to handle some of these issues. You can get an experienced Woodland Hills bankruptcy attorney or Van Nuys bankruptcy attorney in Southern California if you need this kind of assistance.

Bankruptcy is a huge decision to make. It can alter your life immensely in a number of ways.  With Chapter 7 and Chapter 13, you get a variety of options and programs.  With the help of a lawyer, you can decide which one is best for you.  You can rebuild your credit more simply today as bankruptcy becomes more normal.  You will see how fast you can get credit card offers mailed to you.  Although you do not want to get into trouble again, making some smart choices will have your credit back in good standing in just a few short years.