For many Americans with standard employment, taxes are withheld automatically from their weekly, biweekly or monthly paycheck. At the beginning of each year, when taxes are filed, people rejoice when they receive news that they will be getting a sizable tax refund. Many people choose to use that lump sum to pay off or pay down some of the credit card debt they've accumulated through the year. Unfortunately, that balance on your credit card is accruing massive amounts of interest each month, while the money that the Federal government over-withheld in taxes does not.
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.