Creditors try to avoid going to court to collect their debts. They usually prefer to work out payment plans with debtors because the litigation process can be costly and time-consuming. It is possible, however, to be sued for a debt. This is especially true if you missed multiple payments or failed to communicate with the creditor. If you have been sued for a debt, you should know that you still have options. You may even have a defense to the claim. One defense is that the creditor did not file the lawsuit within the statute of limitations.
Life can throw an unexpected and unwelcome turn of events at you at any time. You might arrive at the office one morning to discover that you have been laid off. Perhaps you are crossing the street when a careless driver hits you in the crosswalk, forcing you to spend time in the hospital and in physical rehabilitation after that.
When you find yourself in a dire financial situation, one of the most stressful daily occurrences is the phone calls from collectors. The phone ringing is a reminder that you have fallen into an abyss of debts. This could be due to an injury that put you out of work for an extended period, or a special circumstance that took every penny that you had out of savings. Whatever the reason may be, you, as well as many others in the state of Pennsylvania file bankruptcy each year with the hope of starting anew.
If you are considering filing for bankruptcy due to a crippling amount of medical debt, you are not alone. In fact, medical bills are the leading cause of bankruptcy in the United States, and Pennsylvania is no exception. Millions of people are affected every year by overwhelming and unexpected medical debt, and a large percentage of those people will file for bankruptcy protection.