Category Archives: Bankruptcy

Reasons People Go Bankrupt

Anyone is at risk of being bankrupt especially during these tough times. It is worth noting that the number of bankruptcy cases has been on the rise in recent years. Loss of income and poor financial decisions are among the main reasons why the number of bankruptcy cases might be on the rise. If you are concerned about securing your financial future, here are some key reasons why people file for bankruptcy and how to avoid them.

Job Loss

job posterWe live at a time when the rates of unemployment are at an all-time high. If you have been working for some time, losing your job can easily lead to bankruptcy. How does losing a job lead to bankruptcy? You certainly have to eat, pay rent or mortgage, meet some commuter costs, or pay for utilities. Loss of income and the desire to lead the life you were living when you had a job often leads to all manner of financial difficulties. If you are to avoid bankruptcy, you need to be flexible and adjust yourself accordingly but cutting down unnecessary expenditure.

Income Shrinkage

You might not completely lose your job, but there is always a risk of income shrinkage. Losing a significant portion of your income will leave in a position where you find it difficult making ends meet. Income shrinkage is one of those developments most people have to face at some point. Therefore, it is imperative to brace yourself for such times by cutting down on your expenditure and exploring the possibility of taking side gigs.

Divorce

Another huge cause of bankruptcy is divorce. When a couple decides to part ways, this decision often subjects them to lots of consequences. Divorce means that you have to split your assets and incomes, which could end up hurting your finances a great deal. Moreover, the legal services involved in a divorce proceeding can be quite costly leaving the couple in dire financial straits.

Medical Expenses

If you are faced with a medical emergency, most people are often forced to rack up their credit card debts. In some cases, these expenses lead to huge debts. As a result, individuals with huge debts are highly likely to declare themselves bankrupt.man with no money

These are just some causes of bankruptcy, but they are certainly not the only ones. When facing bankruptcy, the best way to go about to enlist the services of Elizabethton Bankruptcy Lawyers at The Pope Firm. Working with an able legal team goes a long way in providing you with debt relief depending on your situation.

Advantages of Filing for Bankruptcy

debt

Many people might not understand the reason behind filing for bankruptcy, but this is the best way to reduce the burden of the financial burden. To file for bankruptcy, you will need the assistance of Bolinske Law bankruptcy lawyer. A bankruptcy lawyer understands all the procedures and process involved in a bankruptcy case.

Unlock popular belief, it is close to impossible to be declared bankrupt without the services of a bankruptcy lawyer. A bankruptcy lawyer will access your financial situation and compare your debts versus assets and look for a way to present your case.

Benefits of filing for bankruptcy

Keep debt collectors

If you are in serious debt, there are chances that yosad manu keep getting endless calls from your debt collectors. This is one of the most frustrating experience because, with debt collectors on your back, you can never get peace of mind.

If you file for bankruptcy, then all the professional debt collectors will stay away. This is because they understand the meaning of being declared bankrupt, and they won’t waste time looking for you. With debt collectors away, you can have the freedom to concentrate on other issues.

Prevent interest rate accumulation

Debts always come with interest rates and the rates keep increasing every time that you don’t pay up. To make sure you stop the accumulation of the rates, the best way is to file for bankruptcy.

Immediately you present your bankruptcy case; the interest rates will stop at that instance, and you don’t have to worry about your debt increasing.

Protection from legal action

If you are in debt, then you are then you are supposed to face some legal action if you fail to honor the debt. To avoid an instance where you are faced with lawsuits for being in debt, then filing for bankruptcy is the only solution. Bankruptcy offers you some form of protected and even the people you are owing cannot take your to court for prosecution.

The debt is money eliminated

This is one of the main reason why people file for bankruptcy. If you are faced with a huge debt that you cannot pay, then you might want to be declared bankrupt. In this way, you will not have any obligation towards making payments. The debt is automatically written off after the bankruptcy case.

Protection of the assets

According to the bankruptcy law, there are some assets that cannot be sold or seized to pay the debtors. The earlier you file for bankruptcy, the easier it becomes to protect these assets.