When Pennsylvania residents consider filing for Chapter 13 bankruptcy, there are several reasons why this can be preferable to a liquidation under Chapter 7, not the least of which is the oft-mentioned and accurate statement that a person can "keep your home" and "keep your motor vehicle." However, even after the plan has been approved and a person is making the payments as required, problems might arise that prevent the debtor from completing the requirements detailed in the plan. There are still options available, albeit in tightly controlled situations.
When a debtor in Pennsylvania is experiencing financial hardship and takes the wise step in consider Chapter 7 bankruptcy, it is not uncommon for there to be certain aspects of the process that are concerning or outright intimidating. It is not a simple matter of filing for Chapter 7 and having the case over and done with immediately. There are key steps that must be taken to ensure that the case is done correctly and mistakes do not prevent the chance to discharge debt and move on. A key aspect of Chapter 7 is the pre-and-post counseling requirements.
For debtors in Pennsylvania who want to restructure debt and keep a home or a motor vehicle, Chapter 13 bankruptcy might be a worthwhile option. Before taking that step, however, there are important points to keep in mind. The discharge itself is a key factor in a successful filing and understanding how the process works is fundamental to a case. Having legal assistance from the start can help a debtor determine if Chapter 13 is the best choice and with moving forward with a case.
Pennsylvanians who are facing substantial debt with no clear way of paying it will inevitably have concerns about what the future holds. This is especially true for older Americans 65 and above. For them, the idea of not paying their debts can be a frightening thought with feelings of failure and a belief they are not adhering to their responsibilities. However, as time passes, more and more older people are seeking to use bankruptcy to restructure debt and get back on stronger financial ground. Recent research indicates just how many older people are turning to personal bankruptcy.
Pennsylvanians who find themselves deep in debt with seemingly no way out are wise to consider the benefits of bankruptcy. For those who have property they want to keep such as a home or a car and earn regular income, Chapter 13 is often the preferable option. The difference between Chapter 7 and Chapter 13 is that Chapter 7 is a liquidation in which the debtor's property is sold to pay debts. With Chapter 13, that is not the case. The repayment plan is often a concern for people thinking about Chapter 13.
When a Pennsylvanian has financial problems that he or she cannot get out from under and would like to clear them, personal bankruptcy is a viable and legal option to do so. For those with significant unsecured debt and little property, the most common alternative is Chapter 7. There are many terms and participants that are part of a Chapter 7 filing, but one of the most important is the Chapter 7 trustee. The trustee plays a vital role in the case and it is wise for the debtor to know what the trustee does before moving forward.
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.