Filing for bankruptcy isn’t a simple decision but sometimes it must be done. There are variety of things that enter the choice for filing and only you’ll determine if your situation falls into one among the categories. Below are five reasons why some people prefer to file for bankruptcy.

Loss of Employment

A recent study found that this is often one among the foremost common reasons, especially for one-income households. When the income is gone, bills cannot be paid.

High Medical Bills

When someone is seriously sick or injured, most of the income goes to providing adequate care. This means other bills are put off. Filing can eliminate a lot of medical bills.

Home Foreclosure

Filing for bankruptcy can prevent you from losing your home. It will not remove your obligation to pay the mortgage but will restructure payments to make them more manageable.

Repossession

If your car is in danger of being repossessed, filing for bankruptcy can stop the process. Even if your car has been taken, bankruptcy may get your car back.

Harassing Creditors

If you’re under a mountain of debt and obtain calls all the time, filing can stop the harassment and phone calls.