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.
Pennsylvania residents who are worried about interest rates and applying for a loan debt management may be interested in some information on how bankruptcy can affect a couple. Marrying someone with debt issues can present some unforeseen problems that may need to be discussed prior to marriage.
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.
As Pennsylvania residents may know, medical debt may financially burden a family, causing them hardship, and the process of recovering from such financial setbacks may be difficult. In 2012, medical debt affected more than 25 percent of families, and families with children were at higher risk of medical 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.
Pennsylvania residents may not have heard about the recent tips concerning how to prevent a home foreclosure. Whenever a homeowner faces unexpected financial difficulties, extreme consequences can enter into the equation. If a home was used to secure debt, the lender may pursue foreclosing on the home in order to get the title to the property to pay off the debts the homeowner owes. There are several things a homeowner facing this unpleasant situation can do to prevent a foreclosure; some arrangements could require money upfront while others could involve going through the legal system.
Some readers from Pennsylvania may have experience in dealing with collection agencies in matters of unsecured debt. While an unsecured creditor may not inherently possess collateral to use against someone, they may be able to earn the right to seize assets through litigation. As such, the consequences of unsecured debt can be equally as adverse as they would be in cases of secured debt.
Pennsylvania residents may not have heard about the recent recommendations from the Federal Trade Commission about ads in newspapers, telephone directories and magazines discussing the consolidation of debt. According to the FTC, consumer debt is at an all-time high and individuals should use caution when a seemingly quick fix is offered in a publication. Many companies offer the assurance of debt relief; however, often the bankruptcy option is recommended, which can cause a long-term negative impact on a person's credit history and stays on a credit report for 10 years. This can result in difficulty being able to get insurance, housing, credit and even a job for years to come.
Pennsylvania businesses considering filing for business bankruptcy often have concerns regarding what will happen to the business if they choose to file for bankruptcy. The outcome of the bankruptcy will depend on the chapter under which the business files its bankruptcy.
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.