Filing for Bankruptcy: What Goes Wrong?

By Robert Katz

There are many reasons for why people file for bankruptcy and they are probably not what you would expect. A couple of the main reasons people end up having to file for bankruptcy is because of the high costs of medical bills out of their control, have to pay the high costs lawyers and pay out a divorce settlement, and one of the most common reasons is lossing your job. One of the main reasons for the economic crash as of recent was because people were spending way more than they had expecting money to continuously flowing in with out fully thinking about the future and what could happen. When managing your personal finances it is always the best to budget for the worst in the best of times, for no matter how good things may be they can change at the drop of a hat.
People that get into these rough financial spots may not actually be completely broke because filing for bankruptcy has some benefits when you have lots of debt. When you file for bankruptcy you are admitting to being in trouble and are in effect asking for help. People file for bankruptcy because it can stop your house from being foreclosed, your property from being, repossessed, it can reduce or even eliminate the high costs of medical bills, and generally decreases the legal obligation to pay back most of your debts. These are some of the major benefits of filing for bankruptcy if you are truly in serious financial crisis. Some more minor benefits can be stopping harassing collection calls, restore utilities if they were shut off, and stop wage garnishment. Regardless of all of these benefits, if you just manage your money and budget properly, most likely, you'll never have to be in a position that filing for bankruptcy is necessary.

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