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Seven reasons you may need to file for bankruptcy

Seven reasons you may need to file for bankruptcy
"""Bankruptcy is not a last resort; it is a new beginning. The misconception is that you are surrendering or accepting charity. For others, it's just another financial measure to take after losing a job or health insurance. These are, in fact, two major causes for declaring bankruptcy. Let's examine this, as well as the other reasons you may have to file for bankruptcy.

Absence of or Inadequate Health Benefits
The leading cause of personal bankruptcy is not excessive credit card use. Frequently, they are unable to prevent becoming ill or injured and losing their health coverage. You or your spouse may have some coverage, but it is insufficient to cover the expenses. Then, a $80,000 bill arrives in the mail, leaving you with no options. Chapter 7 bankruptcy can save you financially in this situation.

Loss of Employment
Employment is increasing as of 2010, but job loss remains a significant concern for many of us, and it is logical that a bankruptcy could follow. However, you may still be receiving unemployment benefits. You may be able to improve your spending habits or sell some of your valuable possessions prior to filing bankruptcy.

Maximum Credit Card Limit
Yes, the dreaded impulse purchase, the new car you shouldn't buy, and the daily expenditure of hundreds of dollars on clothing and costly jewelry. However you choose to max out your credit cards, it will lead to financial difficulty. In many cases, bankruptcy can eliminate debt, but you must alter your spending patterns before you incur additional losses.

Home Value
Some homeowners use their home equity to pay for new home additions, but cannot afford the payments, particularly if another expense or bill arises. Be wary of adding unnecessary items to your residence or using credit to purchase them. It does not mean you will never be able to do so; however, you may wish to save or be better compensated before utilizing home equity or credit.

No fallback plan
Too frequently, individuals and families are unprepared for an unexpected medical expenditure or job loss. You should contemplate saving at least several months' worth of income from your job, if not six months'. This is easier said than done, but it is preferable to losing your livelihood and then everything else.

Not Paying Credit Card Bills
Rather than paying interest on your credit cards, pay them off or pay more. It may be difficult for a while, but it will improve your credit, save you money, and allow you to avoid bankruptcy if you lose your job or receive an unexpected bill.

Foreclosure
If foreclosure is imminent, then something is unquestionably awry financially. In this situation, Chapter 13 bankruptcy, which allows you to stop a foreclosure before it begins, is a viable option.

For any of these causes, bankruptcy is an option. You may, for instance, have no backup plan and be unable to pay thousands of dollars in expenses. You may be near to losing your home to foreclosure and wish to save it. If you find yourself in these situations, you should consult an experienced bankruptcy attorney.""

" - https://www.affordablecebu.com/
 

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"Seven reasons you may need to file for bankruptcy" was written by Mary under the Finance / Wealth category. It has been read 140 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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