For some Pennsylvania residents, keeping up with the monthly bills is a struggle. Many workers find themselves suddenly without a job; college graduates find it difficult to find a job after leaving college. As income dwindles, the bills keep growing. In some cases, filing for Chapter 7 bankruptcy may be the answer.
While the majority of debts are discharged under Chapter 7 bankruptcy, it is important to realize that there are some debts that are not discharged. For example, taxes for recent years will still be owed. This includes federal and state taxes. Additionally, student loan debt is generally not dischargeable, unless the individual is able to prove hardship as outlined by student loan guidelines.
Other debts that will still be owed include those to some pension plans. If one has borrowed money from the pension plan, it may still need to be paid back. Also, if one has been ordered to pay damages due to injury or wrongful death in a drunk driving incident, that payment is generally not dischargeable. Child support is another type of debt generally is still owed after Chapter 7 bankruptcy. Regardless of an individual's circumstances, the parent is still responsible for taking care of the child.
When a Pennsylvania resident finds it too difficult to keep up with the financial burden that debt is causing, it is time to take action. An experienced attorney can offer guidance as to which options are available, and which option is best under the circumstances. For some, Chapter 7 bankruptcy is the appropriate choice.
Source: bankruptcy.findlaw.com, "Debts that Remain After a Chapter 7 Discharge", Accessed on Dec. 21, 2016