We all know the importance of paying our bills, and paying them on time; however, sometimes certain events happen that makes it extremely difficult to pay our bills at all and we are faced with having to make a decision about whether to go bankrupt and get a fresh start or continue to struggle to put food on the table. Of course that decision is not taken lightly and we need to weigh all the pros and cons. Do the research and determine if it is in your best interest to go bankrupt.
Here are 5 Reasons to Go Bankrupt:
1. Hospital and Medical Bills – Having unbelievably high hospital and medical bills, mostly due to lack of insurance are actually the number one reason people are filing bankruptcy. Just one emergency room visit can easily cripple disposable income.
2. Credit Cards & Personal Debts – Has credit card and personal debt become unmanageable and is causing a hardship on your family? You can file either a Chapter 7 to completely eliminate your credit card debt or a Chapter 13 to manage it over a 2 to 3 year period.
3. Income Tax Bills – A Chapter 7 bankruptcy filing can eliminate old income tax bills if the tax return was filed at least two years ago, the tax assessment is at least 240 days old, the tax return is not fraudulent, and the taxpayer is not guilty of tax evasion
4. Foreclosure – You may be able to keep your home or at the very least buy some needed time to plan whether to let the mortgage go, with a Chapter 7 or make up the payments with a Chapter 13.
5. Wage Garnishments – You need all of your take home pay to just pay for the necessities of life, let alone creditors. When you file for bankruptcy, the automatic stay takes effect and if a wage garnishment is active, you can stop it immediately by taking a copy of your filed petition to your employer’s payroll department or human resources office.
Bottom line is if you need a fresh start, the government is offering you a legal right to start over if your financial situation warrants it. Filing bankruptcy is available to everyone and no one should feel ashamed or embarrassed about exercising that right. Take control of your finances and build a better life for yourself and for your family today.