On May 4, the U.S. Supreme Court ruled that debtors are not entitled to immediately appeal if a bankruptcy court refuses to confirm their proposed repayment plan. The court's unanimous ruling will impact bankruptcy filings in Pennsylvania and across the nation.
As Pennsylvania residents may know, Chapter 13 bankruptcy is a way to reorganize debt and set up a repayment plan to pay creditors. Generally, at the end of the repayment, many remaining debts are discharged. However, some debts are not dischargeable. For instance, restitution in criminal cases or fines cannot be discharged. Debts associated with impaired driving and some forms of extended debt are not either.
Individuals in Pennsylvania who are filing for Chapter 13 bankruptcy may wonder what will happen if they find that they still cannot keep up their mortgage payments. Usually, people file for Chapter 13 bankruptcy when they make too much money to file for Chapter 7.
Pennsylvania residents may be concerned about the recently announced interest rate increases for American Express cardholders. While it is legal for the company to raise their rates, there are certain guidelines that credit card issuers must follow. The CARD Act, which was signed in 2009, changed the way credit card companies can do business and gave consumers several protections.
Buying on credit has become the norm for Pennsylvanians. Nationally, the average person holds over $2700 in credit card debt. Unfortunately, with interest rates ranging from 13 percent to 20 percent annually, items purchased on credit can end up costing up to three times their value.
As many Pennsylvania residents may know, making payments on time and using credit judiciously influences its availability in the future. It may determine whether purchasing a motor vehicle or a new home with credit is possible. Before extending credit, lenders examine credit reports, and an uncomplimentary entry may make the difference between receiving a loan or not.
Pennsylvania residents may be interested in the financial difficulties of one energy company and how they are seeking to resolve the issues. Like many who are in need of debt relief, they have turned to bankruptcy as the solution to their problems.
Many Pennsylvania residents who have credit cards are bound by agreements to enter into arbitration instead of being able to file lawsuits against their credit card companies. Although arbitration is touted as a less expensive and quicker method to resolve disputes than court litigation, these clauses generally favor the credit card companies while preventing consumers from being able to file class action suits.
Using credit cards can create financial challenges especially if consumers do not watch their spending and do not understand how interest is calculated. Credit card users with consumer debt who experience unemployment, reduced income and increased expenses may face creditor harassment because of delinquent payments. Consumers in Pennsylvania and across the country who are making only minimum payments on a credit card to their credit card company could benefit from understanding how credit card interest is calculated.
Pennsylvania residents who are worried about interest rates and applying for a loan debt management may be interested in some information on how bankruptcy can affect a couple. Marrying someone with debt issues can present some unforeseen problems that may need to be discussed prior to marriage.