It may not be generally known that bankruptcy relief can be extended to public-service entities such as volunteer fire companies. Those kinds of nonprofit organizations can, however, obtain relief from creditors and an opportunity to reorganize in a Chapter 11 bankruptcy. A recent example is the filing by a Pennsylvania volunteer fire company called the Conneaut Lake Volunteer Fire Department.
For consumer borrowers in Pennsylvania, a calculation called the debt-to-income ratio is sometimes helpful in determining whether the consumer can pull out of the debt situation without filing bankruptcy. A debt-to-income ratio of 20 percent is considered low by the government and, as such, would be ideal for government lending. Any percentage over 40 percent is considered financially stressful and could lead to a recommendation of filing bankruptcy.
Consumers in Pennsylvania who are so overwhelmed with unsecured debt that it would take many years to pay their way out of it may be concerned about how to resolve the issue. When an individual or married couple cannot pay a reasonable amount each month toward their accumulated unsecured debt balances, while simultaneously affording to have appropriate shelter, food and necessities, the situation may have reached critical mass. It may be time to have an evaluation with a consumer debt counselor, and in many cases, with an experienced consumer bankruptcy attorney.