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Why People File Their Bankruptcy Petitions

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June 6, 2015

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Why People File Their Bankruptcy Petitions

When having huge financial problems, you should file for bankruptcy at once. Basically, this is what will help you stop foreclosure processes, wage garnishments, discharge certain debts, save valuable assets, and so on.

There are many reasons why debtors decide to file their petition. You should consider them if you want to get rid of unpaid debts. Contact experienced bankruptcy lawyers to make a good choice. For example, consider the services of ariano reppucci law offices.

  1. Banks want to foreclose your house. Filing for bankruptcy will let you put an automatic stop. This is what prevents credit companies from making their debt collection actions, including foreclosure procedures. If you want to catch up on your missed mortgage payments, think about Chapter 13 bankruptcy. However, if it is useless to save your house, consider Chapter 7.
  2. Lenders want to repossess your vehicle. The automatic stay you get after filing your petition prevents their efforts to do it. This means that you will be provided with enough time to reconsider your finances and find the best way out.
  3. You’ve moved to another state, but it has less favorable bankruptcy exemptions. The good news is that you don’t need to give up all of your valuable assets in bankruptcy filing. Keep in mind that every state has its own list of exemptions that can be used by debtors. Contact local lawyers to get a better idea of them. If the exemptions of a new place of living don’t allow you to protect the same assets as in the previous one, youa man is filing a bankruptcy petition need to file for bankruptcy fast. This step should be taken before your lose the last domicile. If you think that new exemptions are more favorable for your situation, it makes sense to wait for a while.
  4. Landlords want to evict you. Bankruptcy automatic stops also prevent most of their evictions. You may have to pay your rent, but you will get a break when filing your petition. If they have a judgement for this kind of possession called an eviction order, this step won’t help you at all. That’s why you need to act fast when having certain financial complications.
  5. Stopping the lawsuits charged by credit companies against you. If you are sued for unpaid medical and other bills, filing for bankruptcy will help you stop such lawsuits. You should consider all possible defense tactics to protect yourself and discharge unpaid debts.

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Colin McDuff