To most people, bankruptcy is a scary proposition. The term itself sounds ominous. Finance experts and the media bombard us with nightmare tales of popular people and seemingly solid companies go from a strong financial status to bankruptcy. The list of notable filers of bankruptcy runs the spectrum from individuals to giant corporations like Enron. If you are considering filing for bankruptcy, it makes sense to get in touch with the largest bankruptcy filer in Florida to help you handle this complex process.
Here are five reasons you may want to file for bankruptcy.
A lender is foreclosing your home
One of the ways of stopping foreclosure is by filing for bankruptcy. The automatic stay clause will prohibit your creditors and lenders from continuing collections against you, and that includes foreclosure proceeding.
Keep in mind that a Chapter 7 bankruptcy lacks a mechanism to let you stay at your home. The bank can also file a motion to lift the stay. So, don’t get too comfortable because the relief may be short-lived. Only Chapter 13 bankruptcy can cover mortgage payments and help keep your property.
Note that if you file for Chapter 7 bankruptcy before the home foreclosure ends, there is a good chance the bankruptcy will wipe out your mortgage. You would not get stuck owing the remaining amount if the property was to be auctioned.
The lender intends to repossess your vehicle
Another benefit of filing for bankruptcy is that the automatic stay will result in an immediate stop to your lender’s efforts to repossess your vehicle. If you plan to file for Chapter 13 bankruptcy, you may try to catch up by including some back payments in your plan. Both Chapter 7 and Chapter 13 bankruptcy options may allow you to get your vehicle back in the case it was repossessed recently. It is best to consult with an experienced attorney for legal counsel in this area.
You intend to stop a lawsuit
If a business or person is suing you for a credit card debt, breach of contract, medical debt, or even vehicle accident damages, you know how stressful it can be. If you don’t have enough money to handle such issues, you might consider filing for bankruptcy. After all, it makes no sense to pay to defend such lawsuits if you can get the debt discharged through bankruptcy.
Perhaps you have lost property due to a natural disaster such as a flood, tornado, or earthquake. Or you may be facing astronomical costs because of any other issue that you had not insured againsnt. This can force you to opt for bankruptcy. Generally, most property owners are unaware that they should take out an exclusive coverage for some events such as tornadoes.
Those without the coverage for such natural calamities face the risk of losing their homes and other possessions. In addition to finding a way to replace the damaged items, getting food and shelter is a big problem. In such a situation, you may be unable to handle your debts effectively. So, it makes sense to apply for bankruptcy.