Reasons To File For Bankruptcy
What Are The Common Reasons That People File For A Bankruptcy?
One of the most common reasons we see for filing a bankruptcy is that a person is facing a foreclosure. They could also be facing a garnishment and we use a bankruptcy to stop those.
I Don’t Have A Lot Of Credit Card Debt. Do I Still Need To File For Bankruptcy?
If you have debt such as medical bills, a bankruptcy is definitely the appropriate way to handle it. Many of the people who come to us for a bankruptcy don’t have any credit card debt. They simply have other kinds of debt that they need to deal with.
Will Everyone Know That I Have Filed For Bankruptcy?
Although bankruptcies are public record, in order to find that public record, a person would have to subscribe to PACER. People don’t generally find out unless you tell them. Your employer doesn’t need to know because they’re not a creditor. Although all of your creditors need to know that you filed a bankruptcy, that information doesn’t get out into the public.
Should I File For Bankruptcy If I Am Unable To Pay My Monthly Bills?
An inability to pay monthly bills is actually a very common reason for filing a bankruptcy. People have difficulty making the monthly payments on their non-necessary bills, like credit cards, because it eats up the majority of their paycheck and they eventually have to file a bankruptcy.
Will Filing For Bankruptcy Help Me Get Better Credit Eventually?
The credit reporting agencies are starting to actually give you credit for filing a bankruptcy! We have seen clients’ scores go up by 140 points three weeks after a bankruptcy. If your score goes down initially, it will only be by about 20 points. We find that people above a score of 700 really don’t get any hit at all by a bankruptcy.
Will I Even Qualify For A Bankruptcy?
Anyone can file a Chapter 7 bankruptcy. It’s a liquidation, so there are certain assets that, if they’re not exempt, could be sold. That hardly ever happens because people don’t have those kinds of assets. Basically, you get to keep all your stuff. We find that almost everyone qualifies for a Chapter 7 and if they have a reason to file a Chapter 13, such as equity in their real estate, they certainly qualify for a personal bankruptcy, where they may have to pay back all or a portion of their debt.
What Can Be Some Other Reasons For A Person To File For Bankruptcy?
If a person has fallen behind on their mortgage, they can pay that arrearage back through a bankruptcy. If you’ve fallen behind on your car payment, you can do the same. The other consideration is your credit score and what you want it to look like in the future. Bankruptcy “cleans the slate” and will be a big step to actually improving your credit score!
For more information on Reasons To File For Bankruptcy, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (540) 788-2273 today.
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