You've heard over and over again that there is no way to discharge your student loans, but that isn't really the case. In some situations, student loans can be discharged, or you can find ways to manage them more appropriately.
Every once in a while, the filing of a Chapter 7 bankruptcy in Pennsylvania or another state marks the end of life for a cherished local tradition. It may be an ancient landmark connoting a significant historical event. It could be an old hotel that catered to the rich and famous, perhaps a favored watering hole and popular night spot, or a restaurant famous to the local people. Although few would like to see it close forever, there are no economic pathways that lead forward, and the announcement is made to close the doors via Chapter 7 bankruptcy.
For Pennsylvania consumers who listed financial survival and economic improvement as a New Year's resolution, consideration of bankruptcy may possibly be timely. Any discussion of the topic usually first contends with its sinister image. However, when someone begins to learn the true facts about bankruptcy, the reality of it always looks a lot better than its legend.
A Chapter 13 bankruptcy, which involves a payment plan, may stay on your credit record for up to seven years. On the other hand, a Chapter 7 bankruptcy, which discharges unsecured debt and doesn't seek to pay any of it back, may be reported for up to 10 years. Some Pennsylvania residents believe that they cannot get a mortgage to buy a home for at least that amount of time. The fact is, however, that they will often become eligible for a mortgage much sooner than the expiration of the reporting periods.
A Pennsylvania resident filing a Chapter 7 bankruptcy can usually eliminate all credit card and medical debt, while generally keeping all personal property and belongings. The federal exemptions are available to a bankruptcy filer in Pennsylvania -- they provide sufficient exemptions for most personal property, including autos, bank accounts, retirement funds, and home furnishings. There are limits in each category, but usually a consumer Chapter 7 filing does not result in the taking of personal property by the bankruptcy trustee.
Medical bills continue to be a major problem for consumers nationwide, and in Pennsylvania. Although the Affordable Care Ace is supposed to implement caps on an individual's spending for medical expenses, most knowledgeable observers believe that the pressures of medical expenses on most Americans will continue. In particular, it is predicted that over half of all consumer bankruptcies will continue to reflect medical expenses as a major contributor to the debtor's problems. Fortunately, federal law provides for a resolution for most consumers: filing a Chapter 7 bankruptcy.
After obtaining a bankruptcy discharge from a federal bankruptcy court in Pennsylvania or another jurisdiction, credit card offers may come unsolicited in the mail to the discharged debtors. As unlikely as that sounds, it happens because lenders are aware that a recently discharged Chapter 7 debtor has wiped out considerable debt and sometimes owes virtually nothing. The terms on are not as good as for those with excellent credit, but they are nonetheless real credit cards.