Bankruptcy may feel like hitting rock bottom, but it has always been designed to give people a new start into financial health. Debt is a serious problem for many Americans, and states like Pennsylvania and Florida are seeing changes in the bankruptcy landscape for an unfortunate reason.
It doesn't take long for young adults to accumulate a fair amount of debt. This debt is not just student loans, which are becoming increasingly more burdensome. It often includes credit card and other personal debt.
Suffering from a sudden illness or injury can be debilitating from a financial perspective because it can mean that you will not be able to work for a certain amount of time, and you will lose wages as a result. In addition to this, medical services can be extremely expensive, even if you have insurance.
Owning a home can be a great financial investment, but it can also feel like a heavy burden when things are not going well. When people in the state of Pennsylvania are struggling financially, they often assume that filing for bankruptcy will mean the loss of their home. However, conversely, filing for bankruptcy in the state of Pennsylvania can actually mean that you can prevent foreclosure on your home.
Credit card use is one of the easiest ways to get into high amounts of debt. This is because credit cards are extremely easy to acquire. In addition, the interest that is charged on unpaid balances and fees charged for missed payments means that getting clear of the debt can feel like a never-ending battle.
Bankruptcy may sound like a dirty word, but it can mean a new beginning if it used correctly to settle debts or reoganize your finances. Both individuals and companies can file for bankruptcy, and understanding the differences can make it easier to know how to pursue it as a correction to dire financial straits.
It is widely known that many of our nation's citizens struggle daily with insurmountable debt. In most cases, these people did nothing wrong. Life circumstances and sometimes even bad luck may contribute to financial difficulties. They may have lost a job or had to shut down a struggling business. However, once debt occurs, we all know that the right help is critical to overcoming the hardships created by high amounts of debt.
Many people dread receiving their credit card bills each month for fear of the interest and various fees that they will have to pay. Accumulating debts on credit cards has become a common problem in the state of Pennsylvania, and it is not a good habit to have, since the interest can be a source of additional debt and higher payments.
You have heard of people declaring bankruptcy, and you think that may be your best course of action considering your outstanding debt, but you have never done it before. You're wondering what your options are and what types of bankruptcy -- called "chapters" -- people use the most.
If you are considering filing for bankruptcy, you may already know that there are two primary avenues: Chapter 7 and Chapter 13. While Chapter 7 discharges certain debts in full, Chapter 13 creates a repayment plan so that you can pay off your debts within a five-year window of time.