Reasons to Consider Filing for Bankruptcy

The word “bankruptcy” is a four-letter word to many people. Despite the excellent financial decision that bankruptcy may be to many of these people, it continues to get a bad rap from many people. However, with the help of a bankruptcy attorney, such as those found on , you could be on your way to a new and improved fiscal future. If you are not sure whether bankruptcy is a good decision for you, here are some basic guidelines to consider that might help you make your decision.

To Keep Your Home out of Foreclosure

If your home is in danger of being foreclosed upon, bankruptcy might be your best option to save your home from foreclosure and help you make sure that you are able to stay there as long as possible. Chapter 13 bankruptcy is often the best way to avoid foreclosure, particularly when you are only other option is a short sale of your home. If you want to stay in your home, a bankruptcy attorney can help you by filing a Chapter 13 bankruptcy and putting all of your back payments in a reorganized monthly plan that you can afford. Going forward, you will want to make sure that you pay all of your mortgage payments on time and in full, but with your new bankruptcy plan in place, this will likely be much easier than it was in the past.

You Cosigned on a Loan That Is in Default Now

It is an unfortunate situation when you cosign on a loan for somebody and he or she stops making the payments. In the event that you cosigned on a loan for someone, and the other person failed to make the payments, the debt will then be your responsibility. If there is no way that you can make the payments on a loan that you cosigned for somebody, filing for bankruptcy will help you get out of having to pay off this debt.

To Stop Wage Garnishments

If you owe a debt for which the creditor is threatening to garnish your wages or your bank account, a bankruptcy will stop a pending garnishment in its tracks. While various state laws will identify a set amount or percentage of each of your paychecks that are allowed to be garnished, you must remember that these limits are only a set amount per each creditor. If you have more than one garnishment, you may be looking at a significant chunk of your hard-earned dollars coming out of your paycheck before you can blink. If you have gotten a notice of garnishment, talking to an attorney to file for bankruptcy may be your best bet.

No Way to Pay off Debt in the Near Future

Ultimately, if you look at your debt and the combined total of your debt such as credit card bills, personal signature loans, and medical bills is more than what you can reasonably expect to be able to pay within the next few years, talking to a bankruptcy lawyer about your options would be a good move. Bankruptcy can be a good option for many reasons, just three of which are mentioned above. Visiting to find a qualified bankruptcy lawyer may just be the best financial move you have ever made.