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.
When you are overwhelmed by debt in Pennsylvania, you may be searching for an option for debt relief. Many people find themselves in positions in which they need a fresh financial start. You might be behind on your mortgage payments, have ballooning credit card and medical debt or may owe the IRS taxes. Regardless, there are ways you can address the problems and take care of your financial problems.
When people in Pennsylvania have financial trouble and have exhausted all of their resources, they could be eligible for Chapter 13 bankruptcy. The only people who are eligible for this type of bankruptcy filing are wage earners, sole proprietors and self-employed persons who earn an income regularly. Filers must have also submitted the tax forms required of them over the previous four years.
Consumers in Pennsylvania may benefit from learning more about the steps, requirements and expectations involved with filing Chapter 13 bankruptcy. Debtors are required to submit their repayment plan within 14 days following the date that their petition is filed. The repayment plan and the periodic payment scheduled, usually monthly or weekly, must be approved by the court before it is recognized as legitimate.
Pennsylvania residents who are ineligible for a Chapter 7 bankruptcy due to their income or who want to save their home from foreclosure may be eligible to file for Chapter 13 bankruptcy. Chapter 13 reorganizes debt and gives individual debtors a longer time frame to pay back what they owe. This process generally takes between three and five years, and in many cases, any remaining debt can be discharged.