Regardless of the level of debt a Pittsburgh resident has, one of the main obstacles to moving forward with personal bankruptcy is concern about how it will damage credit. This is true whether it is a Chapter 7 bankruptcy in which there is a liquidation of the person's assets; or a Chapter 13 bankruptcy where a payment plan is initiated and the person makes reasonable payments that he or she can afford, generally over a five-year period.
For Pittsburgh residents who feel as if they are drowning in debt, Chapter 13 bankruptcy might seem like an ideal strategy to get on stronger financial ground. This is undoubtedly true if the debtor takes the necessary steps to ensure the plan's success. Failure to follow through on the terms of the Chapter 13 could lead to its dismissal. To avoid this, knowing how to make the plan work is key.
When a Pittsburgh resident is struggling financially and is considering Chapter 13 bankruptcy, it is important to get good information and professional advice. There are benefits to Chapter 13 that make it preferable to many debtors when assessed in comparison to Chapter 7. For example, a debtor who uses Chapter 13 can retain certain properties without fear of repossession or liquidation. There will be three or five-year plan to repay the debt by sending payments to a trustee who will in turn send them to creditors. These are the basics. Since situations often differ, there are other factors that should be understood.
For Pittsburgh residents who are considered wage-earners and have property that they would like to retain but are in heavy debt with no viable alternatives to pay it, Chapter 13 bankruptcy may be a useful option to get back on stronger financial footing. There are many aspects of a Chapter 13 filing that should be gauged before moving forward with it. One that is not overtly problematic, but should be understood is the role of the Chapter 13 trustee. The trustee is integral to the success of the filing and cannot be ignored.
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.
Like any legal process, bankruptcy takes time. While you look forward to a future of debt relief, one simple, yet necessary step can bring you immediate stress relief.
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.
As a Pennsylvania resident addresses financial difficulties, bankruptcy might be considered as a way of obtaining relief. Although bankruptcy can facilitate a fresh start in one's finances, the timing and type of relief can vary based on the type of bankruptcy filing selected. Chapter 7 and Chapter 13 both provide opportunities for excessive debt to be resolved, but the conditions and actions are different for each option.
While filing for bankruptcy might sound like a frightening thing to do, more than 1.2 million people in Pennsylvania and across the nation have sought federal protections, according to a recent report. Whenever people declare bankruptcy, they are usually trying to find a way out of uncontrollable or unmanageable debt.