Pennsylvanians who are facing significant debt and have no reasonable way to get out of it might consider methods to get into a better financial situation. For many, personal bankruptcy is not something they are willing to think about because of the stigma they believe is attached to it. Along with the misconceptions about the process, they also think that they will lose everything including their motor vehicle and home. However, with Chapter 7 bankruptcy, the reality is that you can keep your home and keep your motor vehicle provided the criteria for the filing is met.
For people in Pennsylvania who are filing for bankruptcy, the circumstances will dictate which chapter they will use. While Chapter 7 is a liquidation and is often viewed as the easiest course of action, some debtors want to keep a home and a motor vehicle. They are also wage earners meaning that the courts will steer them toward a Chapter 13 bankruptcy instead. With Chapter 13 there are repayment requirements. However, the debtor might not fully understand certain aspects such as how the repayment plan is structured, how much must be paid, how long the payment plan will last, and what happens if the payments are not made.
When a Pennsylvanian decides that he or she will move forward with a Chapter 13 bankruptcy to get back on stronger financial ground, it is not a decision that is taken lightly. Since Chapter 13 is considered a "wage earners" plan and requires that there be the formulation of a payment plan that will be completed within three or five years depending on the situation, it is promoted as allowing the person to "keep your home" and "keep your motor vehicle." However, there are basic issues that are important to the entire process. These include the fees that must be paid and the information that must be provided to the courts.
Debtors in Warrendale and throughout Pennsylvania should know that bankruptcy can help achieve financial freedom. There are several options available, and those who are hoping to save their home, automobile and other possessions can think about a strategy to restructure debt using Chapter 13 bankruptcy. A common question that they might ask, however, is how the Chapter 13 will benefit them. The quick answer is in several ways.
Pennsylvanians who are experiencing financial problems can benefit from bankruptcy. It will help a person to clear unsecured debt and move on with their lives. However, there are times when a debtor has certain properties that he or she would like to retain, even if it can be discharged. Examples could be a family vehicle or home. This makes it necessary to promise to repay the debt by signing and filing a reaffirmation agreement.
Since personal bankruptcy is a strategy for debtors to clear their debt, there is often a sense of disbelief that it is possible. After all the stress and worry that comes with accumulating debt and being unable to pay it, it can be difficult to envision Chapter 7 clearing the debt. Pennsylvania residents who are considering Chapter 7 should be aware of the possibility that the discharge could face an objection and work to mitigate that possibility.
A concern that many Pittsburgh residents have when they file for Chapter 7 bankruptcy is what will happen to their property. Worrying that certain properties like a home or a motor vehicle will be repossessed is natural. There are some cases when a secured creditor can seize property from an underlying debt after the discharge. In such an instance, the debtor has the right to reaffirm the debt, pay what is owed and retain it. It is important for people who are confronted by this circumstance to understand how it works.
Financial problems tend to sneak up on people. They have the tendency of impacting individuals in a big way, and some residents in Pennsylvania are completely overwhelmed by the situation. Thus, individuals suffering from debt problems often seek out ways to address or resolve them. While many think that average individuals and families more often experience this situation, it is a situation that could impact people of all incomes and wealth. Therefore, filing for personal bankruptcy is an option that could be very resourceful for all.
Many Pennsylvania residents own at least one credit card. While these devices can be useful, they can also be the cause of financial hardships. Life can bring unexpected challenges, and some individuals rely on credit cards to address bills they cannot pay, such as medical bills. Although some consumers can overcome these uses of credit cards, others might find themselves in overwhelming debt. In these situations, individuals are left deciding how to move forward and address their debts.
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.