While many Pennsylvania residents understand that financial pressures can become burdensome, there are certain restrictions in filing for Chapter 7 bankruptcy as a way to obtain a fresh financial start. Income and household expenses are evaluated to determine whether Chapter 7 is appropriate or whether it would be an abuse of the financial system. Means testing is an important element of filing for bankruptcy, and forms must be filled out accurately and submitted with the petition.
When someone files a Chapter 7 petition in Pennsylvania, a trustee will be appointed to administer the case. The trustee will liquidate the nonexempt assets that belonged to the debtor. If the debtor does not have any nonexempt assets, the trustee will likely file a no asset report with the court. In that event, no liquidation and distribution to unsecured creditors will take place.
According to the National Institutes of Health, it costs $216.6 billion per year to treat cancer in the United States. On average, each patient racks up over $10,000 of debt with costs higher for those treated earlier in life. Cancer treatment costs were also higher for those with advanced forms of cancer. Statistics indicate that 62 percent of cancer survivors go into medical debt to pay for their treatment.
A Chapter 7 bankruptcy involves the liquidation of certain assets of the individual debtor, and creditors are paid off with the proceeds. Pennsylvania residents would file a petition for bankruptcy in a bankruptcy court closest to them. The filing fee is $245, and there is also a $75 administrative fee and a $15 trustee fee. These fees are normally due at the time of filing, but the court may give permission for the filer to pay in installments ending no later than 120 days after the petition is filed. Fees may be waived if the filer's income is less than 150 percent of the poverty level.
No matter how long a company in Pennsylvania may have been in business, sometimes the economic climate or a change in the industry forces the business to shut its doors once and for all. This may be necessary if the business owner’s liabilities exceed his or her assets, and there seems to be no way of getting out of the financial hole. One company in a nearby state ended up filing for Chapter 7 bankruptcy recently.
Even though business owners in Pennsylvania may aspire to thrive for years and even decades, a company's financial status may quickly take a turn for the worst given the right situation. For instance, a dip in the economy may keep buyers from purchasing a company's services or products. One construction company in another state recently decided to file for a Chapter 7 bankruptcy after being unable to keep its doors open.
Starting a business can be exciting, but when the economy is poor and business isn't booming as expected, this can cause duress in Pennsylvania. A few tips can help businesses in our state try to financially stay afloat during the toughest of times. Still, if they end up accruing debt that seems impossible to overcome, then Chapter 7 bankruptcy protection may be a viable and responsible option.
Typically, no one’s goal is to accrue large amounts of debt, but it happens for a variety of reasons. For some people in Pennsylvania, an unanticipated medical problem can cause a person to rack up tens of thousands of dollars of debt, or more. The loss of a job can also result in high amounts of personal debt, or poor economic conditions can cause a business to linger in the red. Chapter 7 bankruptcy protection is available to those who need a way out of their seemingly hopeless debt situations.
People in Pennsylvania may enjoy a night out at the theater -- an opportunity to enjoy creative entertainment while supporting the arts. However, one long-time theater in a different state has filed for Chapter 7 bankruptcy due to being unable to continue on. Chapter 7 bankruptcy is a helpful solution for discharging debts that have become too large to handle.
Most business owners in Pennsylvania have dreams of selling plenty of merchandise in order to stay in the black. However, circumstances beyond their control, such as a downturn in the market or other financial problems, could result in them seeking Chapter 7 bankruptcy protection. A furniture business in one out-of-state case is in the process of liquidating its assets under the supervision of a Bankruptcy Court after filing for relief.