Part II of Twelve common reasons people file for Bankruptcy.
6. Stop Harassing Phone Calls From Creditors
Some creditors try to harass debtors or try and intimidate them until they pay their debts. Many times creditors will relentlessly call you at home or at your job to try to get you to pay your debt. A Bankruptcy filing will immediately stop your creditors, and stop their harassing phone calls and other collection actions. Creditors may only contact the attorney representing the debtor and there may be a claim against that creditor if they do contact the debtor themselves after the filing of a Bankruptcy.
Some creditors try to harass debtors or try and intimidate them until they pay their debts. Many times creditors will relentlessly call you at home or at your job to try to get you to pay your debt. A Bankruptcy filing will immediately stop your creditors, and stop their harassing phone calls and other collection actions. Creditors may only contact the attorney representing the debtor and there may be a claim against that creditor if they do contact the debtor themselves after the filing of a Bankruptcy.
7. Restore or Prevent Your Utilities From Being Shut Off.
If your home is in risk of foreclosure then your utilities such as electric and heat may also be in risk of being terminated. Filing bankruptcy can prevent the utility company from leaving you in the dark and without heat.
8. Provide Help For Massive Amounts Of Student Loan Debt.
Even though student debt will not be eliminated in most cases, Bankruptcy can consolidate your student loan debt into a payment plan. This consolidation will allow a debtor to make monthly payments through a Chapter 13 plan, that is within the financial ability of the debtor.
Even though student debt will not be eliminated in most cases, Bankruptcy can consolidate your student loan debt into a payment plan. This consolidation will allow a debtor to make monthly payments through a Chapter 13 plan, that is within the financial ability of the debtor.
9. Stop a Wage Garnishment.
A Chapter 7 case will immediately stop a wage garnishment. A wage garnishment basically takes away 10% of your weekly paycheck. After the wage garnishment eats up your paycheck, then you most likely will not have enough of your paycheck left to pay your rent, buy food, and support your kids. By filing for a Chapter 7 you will once again be able to support yourself and your family.
10. Challenge Certain Claims of Fraudulent Creditors or Padded Debts.
A bankruptcy will allow you to challenge these claims from creditors who are trying to collect more money from you than you really owe. Many creditors charge you so much interest, late fees, and attorney fees that they try to collect twice as much from you as you borrowed.
11. You are recovering from a bad divorce.
Divorce is a major reason why many people file for bankruptcy. Child support and alimony payments can take away most or all of a spouse’s income, leaving them with no way to support themselves.
12. You are trying to deal with a lawsuit that has been filed against you.
Many people file Bankruptcy to stop a lawsuit that has been filed against them. Bankruptcy stops any litigation that has been filed against you. Bankruptcy stops credit card lawsuits, car accident cases, and any other small business related lawsuits.
The author, Ben W. Koyl, is an attorney located in Chicago, IL. He is the principal of the Law Office of Ben W. Koyl, P.C. with offices located in the Chicago Loop, Beverly Woods / Blue Island, and Joliet, IL. The firm's website is http://www.chicagobklaw.com.
No comments:
Post a Comment
Thank you for your post.