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Reasons to File Bankruptcy - Loss of a Job

Reasons to File Bankruptcy - Loss of a Job
"""Bankruptcy is intended to assist individuals who have fallen into catastrophic financial circumstances that were generally beyond their control. There are numerous reasons why an individual might declare bankruptcy. One of the reasons is that they are unable to pay their enormous medical expenses. Others have problems with credit cards and other out-of-control debts, which is another reason for declaring bankruptcy. Consider filing bankruptcy if you are losing your job in order to secure your assets during your unemployment. Here are some things to consider if, for whatever reason, you decide to apply for bankruptcy.

Consider Your Co-Signers

Do you owe money to co-debtors? A co-debtor is someone who signed onto the debt with you and is liable for repayment if you default. If you intend to file for bankruptcy, your co-signers will be held responsible for repayment. Before filing for bankruptcy, you should speak with any co-signers on your automobile, home, or other debts that you want included in your discharged debts.

Determine Which Debts Cannot Be Cancelled

Many individuals are under the impression that they can discharge all of their debts through bankruptcy. But did you realize that there are many debts that even bankruptcy cannot eliminate? If you believe you can eliminate your student loans, you are almost certainly mistaken. When you owe outstanding taxes, alimony, or child support, you are still obligated to fulfill these financial obligations.

Make Your Creditors Aware

When registering for bankruptcy, it is essential to inform your creditors. Once you have filed, they should cease all contact. If they contact you after you have filed, give them the name of the attorney who is managing your case to let them know they should not be contacting you.

Keep Your Residence Off of the List

If you lose your job and file for bankruptcy, you should not include your home among the debts you wish to discharge. It will take several months, and in some cases more than a year, to foreclose on your property and evict you. During that time, your employment situation may improve, but if you designate your home as one of your discharged debts, you may lose it sooner. Take solace in the fact that you will have a roof over your head even during these financially trying times.

Losing an employment can be one of the most traumatic events an adult can experience. Filing for bankruptcy is one of the available options for dealing with this crisis. But if you recover and have additional funds, you should contemplate repaying your debts.""

" - https://www.affordablecebu.com/
 

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"Reasons to File Bankruptcy - Loss of a Job" was written by Mary under the Finance / Wealth category. It has been read 123 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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