The Top 5 Reasons to File for Bankruptcy | Westgate Law

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The Top 5 Reasons to File for Bankruptcy

Filing for bankruptcy doesn’t carry the stigma is used to. In fact, in today’s economic climate, it’s not unheard of for successful, good people to file more than once or even multiple times. The ups and downs of the marketplace have left many with the need for a fresh financial “slate.” There are many willing to advise individuals experiencing financial trauma about the consequences and negative effects of declaring bankruptcy, but what they don’t tell you are the advantages of filing.

Consider the Top 5 Reasons for Filing Bankruptcy:

  1. Stop Foreclosure Proceedings: Filing for Chapter 13 bankruptcy is a solution for individuals who are behind on their mortgage payments. Falling behind on mortgage payments means foreclosure – sooner rather than later. With a Chapter 13 bankruptcy, foreclosure actions cease immediately and can be avoided permanently through the agreed upon payment plan that enables filers to catch up on back mortgage payments.
  2. Stop Vehicle Repossession: Repossessions are treated in a similar manner to foreclosure when Chapter 13 is filed. Individuals who find themselves behind on their car payments may consider this the most effective solution.
  3. Discharge of Revolving, Medical or Unsecured Debt: Filing for bankruptcy can result in the discharge of a large portion of your debt. Many find themselves overwhelmed by high balances and out of control interest rates/fees. Bankruptcy can alleviate this pressure and provide a solution.
  4. Stop Harassing Credit Phone Calls: As soon as bankruptcy is filed, creditors are required to cease all phone calls and contact regarding any and all debt. They are actually legally required to “not” call you or contact you by mail. This alone is incentive enough for many to consider declaring bankruptcy.
  5.  Stop all Collections Lawsuits, Judgments and Garnishments: Filing for bankruptcy means putting an end to collections lawsuits or judgments. It also puts an end to any related garnishments. This includes any IRS or student loan garnishments. If you find that your paycheck is being garnished to the point where you don’t have enough to live on, bankruptcy might be the solution to your problem.

Bankruptcy has a bad reputation, but it’s often the best answer to financial difficulties. Contact Westgate Law today to discuss your options and find out how bankruptcy can benefit you.

About the Author

Justin Harelik

Justin has a singular goal: to get people out of financial distress and move them to financial stability and prosperity. He does this by combining 15 years of in-depth experience in bankruptcy, credit management, debt negotiation and student loan modifications, and he does it with both English and Spanish-speaking clients.

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