What are the top reasons people file for bankruptcy?
- Credit Card Debt – Chapter 7 or Chapter 13 can eliminate credit card debt.
- Foreclosure – Many clients file for Bankruptcy to stop their home from being foreclosed upon and sold. They are afforded the opportunity to stop the foreclosure sale and save their home. The debtors can attend a mortgage mediation.
- Repossession – Once you file bankruptcy, an “automatic stay” is entered and any effort to repossess your automobile must stop. Bankruptcy will stop or discharge any lawsuit related to a repossession.
- Wage Garnishment – Under current Florida law, if your wages or bank accounts are going to be garnished, you will not receive any notice until after the wages have been withheld or a hold has been placed on your bank account. Once you file for Bankruptcy, wage garnishment must stop, the money taken should be returned and the debt owed is discharged in bankruptcy. Garnishment cannot exceed 25 percent of your net wages. A creditor can continue to garnish your wages under a continuing writ of garnishment until the judgment is paid in full.
- Medical Bills.
- Divorce.
- Death of a spouse.
- Lawsuits.