Most Pennsylvania residents are aware that one of the leading causes of personal bankruptcy is the medical debt that follows a significant illness or injury. However, few understand just how the statistics supporting this claim are gathered. A recent article takes a closer look at how we determine which factors are behind the decision to pursue personal bankruptcy, and the measures in place to ensure that those numbers are accurate.
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.