For Pittsburghers who are facing overwhelming debt and do not have property they want to retain, a Chapter 7 bankruptcy liquidation is the easiest and fastest way to clear debt and get back on stronger financial footing. However, there are basic requirements when filing for Chapter 7. One is the means test. Understanding what the means test is and what steps must be taken is critical to a case.
When Pittsburghers suffer an illness, condition or injury, their main concern should be getting the proper treatment and getting well. Whether that requires hospitalization, surgery, or ongoing care, finances should not factor in the equation. In practice, however, finances are a constant worry, and with good reason. People who need medical care can accrue massive medical costs. This is when bankruptcy may be a wise decision to get back on stronger financial footing.
Pittsburgh residents who have found themselves facing financial struggles that they cannot handle and see no other alternative will consider Chapter 7 bankruptcy. For many, this is a wise decision so they can restart their financial lives and move on without the endless worry and creditor harassment they were confronted with at the apex of the situation. However, when deciding to file for Chapter 7, it is important to understand that the entire process is based on liquidation of any property that is of value after which the debtor will no longer be responsible for the various debts. If there are properties that the person wants to retain, it is possible to do so by reaffirming it and paying it.
There are many myths out there about retirement. One is that once a person is in retirement and in his or her later years, his or her credit score stops being impactful.
Have you been out of college for a few years? Have you found it a challenge to remain on the right financial track? For example, you may feel bogged down by mounds of student loan debt, other bills, and of course, a low starting salary.
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.
It is a common misconception among Pennsylvania students that all types of student loan debt are inescapable through bankruptcy. However, laws that protect other types of student loans from being discharged do not protect many private student loans. In fact, some private loan debt may be cleared away within 90 days of filing for a Chapter 7 bankruptcy.
There may be debtors in Pennsylvania who can benefit from understanding more about what creditors can recover after a Chapter 7 bankruptcy filing is approved. Smaller items, such as clothes, furniture and moderately priced jewelry may not be collected from debtors approved for Chapter 7 bankruptcy. The trustee assigned to the bankruptcy case is typically concerned with issues related to the transfer of assets, cash advances, potential inheritances, pending lawsuits or delaying a foreclosure.
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.
Despite the few disadvantages of filing for bankruptcy protection, there are numerous advantages. Chapter 7 bankruptcy can eliminate many debts without requiring the Pennsylvania filer to pay anything toward the outstanding balances. Although some debts, such as student loans, alimony and child support cannot be discharged in bankruptcy, eliminating consumer debt and medical bills might make it easier to make the payments on educational debts and family obligations.