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.
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.
For people in Pennsylvania, unexpected medical debt can lead to catastrophic financial effects, even for those who have health insurance. In 2007, for instance, 62 percent of all personal bankruptcy filings resulted from unmanageable medical debts, and most of those people were well-educated homeowners. Of those who filed bankruptcy due to medical debt, three-fourths had insurance.
Many people in Pennsylvania who are considering bankruptcy may want to file for Chapter 7, as most of their debts can be discharged when the action is granted by the court. However, not everyone is eligible to file in this specific category, which also equates to complete liquidation.
Many Pennsylvania residents have their wages garnished each year due to creditors obtaining judgments against them. People can choose to pay off the debt in full or to keep paying the debt through garnishment if they are able to do so. For many people, this is not an affordable option, however.