Top Reasons That Drive People into Filing Bankruptcy
Author: Eulalia Allmand
Filing for bankruptcy can be a hard decision for most people to make; however, the circumstances surrounding their situation make it impossible for them to see any other way out. There are many reasons that normal trustworthy people, much like you and me, decide that filing for bankruptcy is their only option. These reasons include:
1. Job loss/unemployment - Many people have great paying jobs and rightfully decide to buy their family a nice home, good cars, and send their children to upscale schools. And why not? They have the money to pay for it. Unfortunately, right when some people are in the prime of their financial life, they find themselves suddenly laid off with little more than a severance package if they are lucky. While they are looking for a new job, the large mortgage, large car payment, and the children's monthly tuition is due. To top it off, many of these people will jump into new jobs that pay significantly less than their old one, just to get some of their bills paid. These people have now found themselves in an unforeseen situation that was beyond their control.
2. Medical bills - Sometimes the systems that are supposed to protect us, fail us. Other times, we are victims of unfortunate accidents that require extensive hospital stays and months of physical therapy. Even if we have a medical plan that pays 80% of those bills, we still have a large deductible and the other 20% to worry about. Sometimes these medical costs mount up to more than we have the ability to pay back, while still paying housing costs and buying groceries. This is another example of someone who has found themselves in an unforeseen situation that was beyond their control.
3. Divorce/separation - Not only is divorce costly, but you could also end up owing portions of your spouse's debt even ones that you didn't know about. If your spouse files for bankruptcy or is otherwise uncollectable, their creditors will not hesitate to try and get the money from you especially if the divorce is not yet final. Unemployed spouses may also find themselves taking on debt in order to get a car and a place to live after a sudden separation.
4. Predatory lending practices - Some lenders (usually labeled "subprime") prey on those who cannot get loans from traditional lenders and offer them money that they can definitely use, but will likely have trouble paying back when coupled with the large interest rates and fees that these companies often charge.
These situations catch people off guard and throw them into a circumstance that they cannot handle. All of the sudden they are in over their heads, have creditors harassing them left and right, and need a way to get out of this mess. Bankruptcy can be a practical and respectable solution to help these people get back on their feet.
Article Source: http://www.articlesbase.com/finance-articles/top-reasons-that-drive-people-into-filing-bankruptcy-383852.html
About the Author
Fort Worth Bankruptcy Attorneys Allmand & Lee specialize in personal bankruptcy and offer bankruptcy services that help good people through one of the toughest times in their life. We have experienced bankruptcy attorneys who can help you work toward a better future. For more information please visit us at http://www.allmandandlee.com/
Are you facing foreclosure or bankruptcy in the Fort Worth, TX area?
Are there disadvantages to lease purchase agreements in real estate?
My husband and I are looking into either purchasing a house or renting one in Fort Worth. We own a house now, but in another city. We also have a bankruptcy about 3 years old. Is it ever a good idea to consider a lease/purchase or rent/own agreement? What are the risks?
Health Officials: Nurses, Doctors, etc. Can I get some help?
I’m doing extensive research on a hospital that shut down in the city I live in. I hear it was because of bankruptcy. I also read that a violation was given to the hospital, and I’m wondering if someone can elaborate on this, and give it to me in (sp?) laymen’s terms. Or maybe if you worked at this hospital or heard about it happening, let me know!
-Notice is hereby given that the Bureau of Radiation Control issued a notice of violation & proposal to assess an administrative penalty to Dallas/ Fort Worth Medical Center (registrant-R00374) of Grand Prairie for violations of the Texas Regulations for Control of Radiation. A total penalty of $5,000 is proposed to be assessed to the registrant for deliberately exposing an individual to radiation without authorization from a licensed practicioner & for non-healing arts purposes.
Apartment Renting help in Austin Texas?
In Texas Can i sign a lease for a apartment if I only have unemployment?
I am planning to relocate to either Fort worth or Austin Texas for health reasons and to find employment. I only have my unemployment and a small amount of child support as income.
Is it possible to get a apartment using just that. No co-signer Also i filed bankruptcy last year. I live in Michigan now and i have a month to month lease.
Also i am looking to move to a walkable neighborhood with public transportation close by. * I have found a few areas that have that.
Do most police recruiters do credit checks?
More specifically, the Fort Worth and Arlington, TX recruiters. On their recruiting websites, they don’t state anything about conducting credit checks. I had a bankruptcy filing in 2005 and my credit still isn’t the greatest…
you want to give away some money ?
Good questions folks. There certainly are some risks to consider. The first question is why are you considering rent to own? Your bankruptcy is 3 years old and will not hold you back from getting financing right now, as long as your score are in the high 500′s or better. Always buy before deciding to rent to own.
Rent to own is a good option if: you can’t buy right now (because you can’t qualify for a mortgage for example), but you have a clear plan of what you are going to do to qualify for a mortgage during your lease period.
Here are the risks:
1. Your credit may not be good enough by the time your lease is up. If you can’t buy, you lose your option down payment. Get the odds on your side, follow a proper credit building plan.
2. The seller may not be truthful. Have a home inspection done, have the title checked to make sure they actually own the home, and have the contract reviewed by a professional to make sure you are adequately protected.
The only time it is a good idea to consider a lease purchase is if you are in a temporary situation that is preventing you from buying, that you know you can fix during your lease period. This way you can lock in the price right now, get a rent credit so you don’t lose all your rent, and get to live in the home you want to own while you get ready to buy it.
Your credit probably won’t effect your application, unless you violated the law (judgements, fines, etc.)
I wish i could help you in your Quest
As this is already under investigation,
you will be most unlikely,
to gain more information ,before it has gone to court.
It sounds to me that litigation ,is already underway.
And to spread word, about this incident ,
may prejudice the case, for both litigant
and those responsible,for the alleged incident .
the lawyers on both sides will want to keep ,
details of this as close to ‘thier chests ‘ as possible.
Or it may cause them lose the case, to the other side .
Lawyers can then lose revenue and reputation.
Which as you know, they do not care for !
>^,,^<
You know it really depends.It depends on how much you take home a month from both sources of income.Also,have you thought about section 8 housing since you have children? The section 8 apartment complexes are not like you are thinking,some of them are really nice.
I filed bankruptcy and then got an apartment in san antonio and it wasn’t really an issue.You just have to be honest and upfront with them before hand and some of the complexes don’t care.Texas is a debt friendly state and you’d be surprised at how many people file bankruptcy there.Keep in mind Austin is very expensive.Have you thought about San Antonio? Ft.Worth is also affordable.Here are some links that might help you out.
Also,a lot of times in Texas,you will find very nice houses for rent and the rent for a house is often cheaper than an apartment.Renting from a private owner sometimes they don’t ask for credit checks,just deposit but in terms of an apartment,Texas has lots of move-in specials,if you sign a 6 month lease or something along those lines often times you can move in for 99 dollars etc..good luck to you.