Just because the Great Recession is over, doesn’t mean that money problems are too. The fact is major money issues can plague anyone who is unlucky enough to be involved in an accident, lose a spouse, or just fall on hard times. In times of financial turmoil, some of the most difficult things you can end up facing are bankruptcy and bad faith loans, but luckily, there are ways to deal with both.
If you’re thinking filing for bankruptcy might be the best financial option for you, you are not alone. According to a United States Courts report, there are just around one million personal bankruptcies filed annually in the US. Filing for bankruptcy can be an important step towards solving financial troubles and piled-up debt. According to Raleigh Bankruptcy Lawyers, Chapter 7 bankruptcy is one of the most common types of bankruptcy as it allows individuals to eliminate their debt, curb creditors and repossessions, and rebuild their credit.
Generally, when insurance is purchased for any entity, whether it be a house, a car, or even a life, it is expected that the insurance company will cover any filed claims when an accident occurs. This is known as keeping “good faith.” Of course, not every insurance company keeps their practices completely clean, as many will look for excuses to not fulfill its obligation to its customers in a practice known as insurance bad faith. If an insurance company refuses to pay out on a claim, legal action can be taken in order to ensure one gets the money they need. According to the attorneys at Smith Kendall, PLLC, the most common bad faith practices include coverage disputes, deceptive trade practice violations, and insurance code violations.