Tuesday, August 2, 2011

Top 10 Reasons For Filing Bankruptcy - #10

There are a variety of financial and emotional reasons people make the choice to file bankruptcy.  The choice is almost never an easy one.  Over the next several post, I will list what I determine as being the top 10 reasons people make the leap into asking for debt relief though our bankruptcy code.  They are not presented in any particular order, but as a matter of tradition, I will start with #10.

#10: Anticipatory Repossession and Garnishment: You anticipate having property repossessed and the creditor will be, or is, trying to collect a deficiency balance against you.  This can present a very stressful situation, as it not only hits you directly in the pocket book, but through the garnishment process, your employer will ultimately find out you have had a repossession.  This, at a minimum, is embarrassing.  For some people, it could possibly lead to affecting your job.

Bankruptcy provides for several protections.  One, if bankruptcy is filed prior to the creditor initiating garnishment proceedings, it is possible that your employer will never find out.  Also, if you are privately employed, as opposed to government, there are protections against your employer discriminating against you because of having filed bankruptcy.

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