Contrary to popular belief, bankruptcy does not happen simply because of shopping addictions. Instead, countless Pennsylvania residents teeter on the brink of financial crises when unexpected expenses arise. Of course, student loan debt, unemployment and divorce are also to blame, but there are other, lesser-known events that can factor into the decision to file bankruptcy.
Chapter 7 bankruptcy is commonly referred to as the "liquidation chapter." Despite the name, most people who file are able to keep all of their assets and nothing is liquidated. Liquidation only occurs if an asset cannot be exempted in full. More on exemptions below.
Once a person in Pennsylvania has made the choice to file for bankruptcy and what type of plan is best for them, their concerns might turn to how they can move forward financially once the bankruptcy is over. This is logical as a fresh financial future is ultimately the point of filing for a Chapter 7 or a Chapter 13 bankruptcy when there are no remaining options for people to get out from under mounds of debt.
When a hard-working Pennsylvanian like you finds yourself buried in debt so deep that you don't know how to get back on your feet, Schimizzi Law, LLC, is here to help. Filing for bankruptcy has a stigma surrounding it, but the truth is, it's a viable and sometimes even vital way of handling your debts.
Many Pennsylvania residents who struggle with financial problems may feel hesitant about pursuing bankruptcy to help them get a fresh financial start in part because they fear that they would be unable to get a new mortgage someday. That, however, is not true. While there may be some extra steps involved, it is possible to buy a new home or refinance an existing home even with a bankruptcy on a record.
If you find yourself strugling with how to pay your bills and feel that they only seem to increase every month despite your efforts to make payments on them, you are far from alone. Many people in Pennsylvania are in a similar situation. For some, a bankruptcy may offer a good solution to the problem and provide a fresh financial start. However, before you jump too fast to get a bankruptcy filing started, you should learn about how a Chapter 13 plan works as it is different than a Chapter 7 plan.
Depending on the nation's economic state, the abundance of available jobs and a multitude of other factors, financial matters can become trying on individuals and families. One looming cause of bankruptcy in Pennslyvania is medical bankruptcy, in which individuals may seek governmental help in distressing financial times caused by overwhelming medical bills.
Many people dealing with debt they cannot pay are embarrassed at their situation and feel as though they are facing it alone. On the contrary, this is one of the most common financial problems, and people all around you have likely been in your position before. Shame will only prevent you from finding a solution to the problem, so it is important to approach it realistically and consider all of your options.
A common misconception amongst many in Greensburg may be that bankruptcy is simply a tool that people can rely on to avoid having to answer for having been irresponsible with their money. However, simply filing for bankruptcy does not mean that one does not have to repay his or her debts. Chapter 7 cases are often labeled as those that allow debtors to be forgiven of their debts, yet that is not entirely accurate. Many of one’s personal assets may be liquidated in order to repay creditors in a Chapter 7. Yet that is only if one is eligible to file at all.