Declaring bankruptcy is something that everyone tries to avoid, but many times it’s a lifesaver. Despite the stigma attached to bankruptcy, filing can prove to be a smart decision. Here are four good reasons you should consider filing for bankruptcy.
1. Loss of a Job
While you might be a financially responsible person that always pays your bills on time, the loss of a job turns everything upside down. Despite your best efforts to stay afloat, being out of work can wipe out your savings. By filing bankruptcy Rockland MA, you’ll prevent the loss of your home and other assets.
2. Overwhelming Medical Expenses
Another common reason people file for bankruptcy is because of overwhelming medical expenses. Becoming ill isn’t your fault, but the doctor and hospital bills can reach into the thousands of dollars. Even if you have medical insurance, many things aren’t covered leaving you drowning in a sea of debt.
3. Foreclosure Is Imminent
If you can’t pay your mortgage due to unemployment or illness, your house will be foreclosed on. To prevent the loss of a home you’ve worked so hard for, bankruptcy is a viable solution. As soon as you file, foreclosure and all other debt collection attempts are stopped in their tracks.
4. Extreme Credit Card Debt
Credit card debt can spiral out of control even if you’re on time with your payments. Whether you had an emergency or have poor spending habits, high-interest rates will ruin your finances. If all your money is going towards sky-high minimum payments and you’re using your cards for everything, bankruptcy will end the cycle.
Filing for bankruptcy can wipe your debt clean giving you a fresh start. If you’ve lost your job, been overwhelmed with staggering medical expenses or credit card debt, bankruptcy will prevent you from losing everything.