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.
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.
Pennsylvania residents who are faced with overwhelming consumer or medical debt may sometimes consider filing for bankruptcy as a method of obtaining some relief from these obligations. The ultimate goal is to obtain a discharge from the bankruptcy court, as the effect of a discharge releases the filer from personal liability from some of these debts. The affected creditors are also prohibited from further communications with the debtor and from instituting or continuing any form of collection activity with respect to those obligations.
Facing extensive debt day in and day out can quickly begin to wear on a person in Pennsylvania, causing them to desperately seek debt relief. Two individuals in an out-of-state case recently found themselves in the red financially and thus decided to file for Chapter 13 bankruptcy. The husband and wife team co-own two restaurants.
When debt seems to linger like an unshakeable cloud, a consumer in Pennsylvania may begin to feel desperate for help. Personal bankruptcy protection is available for those who wish to eliminate unsecured debts that have simply become unmanageable. However, it’s worth noting that filing for bankruptcy may have an impact on a friend or family member who cosigned a loan for a person who subsequently files for bankruptcy.
A person may feel at a loss when it comes to paying down debt in Pennsylvania. Their constant efforts to get rid of debt may be of no avail due to inadequate wages and high interest rates on credit cards, for example. These individuals may qualify for a Chapter 13 bankruptcy filing, which enables consumers to finally say goodbye to stressful debt.
For the average consumer, finances and debt constitute some of the greatest stresses in life. However, debt may be a much larger issue for one person versus another. Those who are facing a sizable amount of debt may benefit from either a Chapter 7 or Chapter 13 bankruptcy filing in Pennsylvania.