Losing your job because of illness or injury sends you into a downward spiral. Your income stops when you lose your job. In some cases, workers' compensation payments help, but they usually aren't what you need to cover the basics. Add in the medical bills that you might have coming in and the situation can get dire. If you are facing a sea of debt, you have options to consider. Bankruptcy is one of those options.
If you've been living paycheck to paycheck for years, debt can accumulate quickly. It's far too easy for the average Pennsylvanian to reach a point where their level of debt is simply unsustainable. A single event, like a car accident or a medical issue, can make maintaining your payments impossible. Even those who have worked for years in the same field may find that cost of living increases simply aren't enough to cover their ever-expanding debt.
Most people facing overwhelming debt want to file for Chapter 7 bankruptcy, due to the fact that it offers an immediate clean slate, but many don't qualify. For this reason, they need to learn more about Chapter 13.
Being late on your debt payments may have been what caused you to consider going into Chapter 13 proceedings in the first place. However, under Chapter 13 bankruptcy the payments do not stop. Although the monthly payments under a debt restructuring plan will be dramatically less and much more affordable, they will still need to be paid and if a debtor gets behind it could cause some serious problems.
For the Allegheny County homeowner trying to stop foreclosure or the married couple whose high-interest-rate credit card debt has them looking desperately for a solution to their financial challenges, Chapter 13 bankruptcy might offer a solution. Financial challenges are usually accompanied by creditor harassment which makes the situation even more desperate.
Even with our recovering economy, small businesses across Pennsylvania are still feeling the effects of the latest recession. As such, it can feel like you have been struggling to keep creditors away, but perhaps you simply cannot do it anymore. If your business is failing, it may be time to file for chapter 13 bankruptcy.
Even the most financially secure people sometimes face financial hardship. Whether facing sudden unemployment, an underwater mortgage, mounting credit card debt or other financial challenges, bankruptcy can offer a fresh financial start. Chapter 13 is one option available to individuals that offers debt relief.