When a Warrendale debtor decides to take the steps necessary to get back on stronger financial ground and would like to ensure that he or she can keep certain possessions like a home or an automobile, they will choose Chapter 13 bankruptcy. While this is a wise step, it is also important to understand the various requirements and obligations the debtor will need to fulfill to make the plan successful. Failure to do so can sabotage the plan and prevent its completion.
Pennsylvanians who are in debt and do not know how they will get back on stronger financial ground are wise to consider bankruptcy. Many benefits of personal bankruptcy are relatively well-known. That includes the chance to discharge debt, restructure debt and put a stop to creditor harassment. One part of the process that should also be understood and will likely help the debtor feel better about the situation is the automatic stay. Understanding the automatic stay and how it helps is important before filing for bankruptcy.
Financial problems in for Pennsylvanian can occur for a variety of reasons in their personal and professional life. While it might seem like an act of avoiding one's responsibilities and not paying what is owed, bankruptcy is a useful strategy to get back on stronger financial ground, clear many debts, keep a home and a motor vehicle, or get a business into a better situation to move forward. Understanding which bankruptcy chapter is preferable for the individual situation, which debts can be eliminated, and how bankruptcy can be beneficial is imperative before taking the next step.
When Pennsylvanians are struggling financially and decide that they would like to file for bankruptcy, the chapter under which they file will hinge on their individual circumstances. To keep your home or keep your motor vehicle it is wise to think about a Chapter 13 repayment plan. Since Chapter 13 is considered a "wage earner's" plan, those who file for Chapter 13 will usually have income and the ability to make payments. It is essential to understand exactly what must be done to succeed with the plan.
Pennsylvanians who are experiencing financial trouble and use bankruptcy to get back on stronger ground might run into trouble again. This does not imply that they have done something wrong or they are irresponsible. Myriad issues can arise leading to people having financial struggles and needing to consider filing for one form of bankruptcy or another to discharge debt. Just as in the initial case, job loss, medical costs and other factors can come up. A question that people will often have is whether they can file for bankruptcy a second time and when. Knowing the details of how this can be done is essential to a successful filing to again move forward free of debt.
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.