Life can throw an unexpected and unwelcome turn of events at you at any time. You might arrive at the office one morning to discover that you have been laid off. Perhaps you are crossing the street when a careless driver hits you in the crosswalk, forcing you to spend time in the hospital and in physical rehabilitation after that.
When you find yourself in a dire financial situation, one of the most stressful daily occurrences is the phone calls from collectors. The phone ringing is a reminder that you have fallen into an abyss of debts. This could be due to an injury that put you out of work for an extended period, or a special circumstance that took every penny that you had out of savings. Whatever the reason may be, you, as well as many others in the state of Pennsylvania file bankruptcy each year with the hope of starting anew.
If you are considering filing for bankruptcy due to a crippling amount of medical debt, you are not alone. In fact, medical bills are the leading cause of bankruptcy in the United States, and Pennsylvania is no exception. Millions of people are affected every year by overwhelming and unexpected medical debt, and a large percentage of those people will file for bankruptcy protection.
It’s a story that is all-too-common in today’s financial climate. Students head off to college with big aspirations, taking on massive student debt they believe they will be able to pay off with the jobs they get with their degrees. Once they graduate, however, they find that they job market is slow at best, forcing them to get jobs that barely cover the cost of living, much less student loans. What’s worse, filing for bankruptcy is rarely an option for student debt relief. As such, more than 25,000 Pennsylvania graduates have defaulted on their student loans.
Maybe it’s happened to you: you get a phone call trying to collect a debt you know you don’t owe. If you try to convince the collector that you don’t owe the debt or even that you aren’t the person they are trying to reach, it is usually to no avail. Even though there are laws against this type of harassment, people on the wrong end of creditors’ calls don’t often enforce them, either because they aren’t aware of them or they think it is too much trouble.
Students across Pennsylvania often gain more than a diploma when they graduate from college — they also gain a sizeable student debt. Some are able to find great jobs right out of school and are therefore able to pay back their student loans with reasonable ease. Others, however, may find they feel like they are drowning in debt. While it is rare, student loans can sometimes be partially or completely discharged through bankruptcy.
You can find yourself in financial difficulty for any number of reasons, for example, the loss of a job, a business failure, a serious illness or injury that leads to overwhelming medical costs, and more. Just as your reasons for getting into an unmanageable debt situation are unique to your circumstances, there are specific considerations that you will need to consider when deciding how to cope with such financial concerns.
Over the last six months, the Department of Education and the Obama administration have attempted to create a web-based portal for those with student loan debt to help them better manage their loans and make complaints against servicers. But at this point the portal only gives general advice about managing your student loan debt. Due to the inadequacy of the portal, the Consumer Financial Protection Bureau has launched its own initiative.
If a resident of Pennsylvania would like to borrow money to attend school but has filed for bankruptcy in the past, chances are good that they will still be able to receive a student loan. Although declaring bankruptcy does not look good on a credit report, doing this does not disqualify individuals from applying for all types loans.
Pennsylvania residents may be interested in the financial difficulties of one energy company and how they are seeking to resolve the issues. Like many who are in need of debt relief, they have turned to bankruptcy as the solution to their problems.