If you are falling behind in your bills and struggling to pay off delinquent debts, then bankruptcy may be an option for you to consider. Many people in Pennsylvania file for bankruptcy every day. The opportunity to have certain debts discharged or erased to gain a new financial start is tempting, but there are rules and stipulations in place that may or may not work well with your situation. Before you start filling out any paperwork, you should take a moment to learn if it is the best choice for your circumstances.
The decision to file bankruptcy is a stressful one. Although the number of bankruptcies in the United States is on the decline, it's estimated that more than one million people will file a Chapter 7 or Chapter 13 this year. A bankruptcy can help you get past a financial setback, but there are many things you need to consider. Most importantly, you need the truth about the law and your situation. Here are a few of the myths associated with bankruptcy:
When you find yourself in escalating debt with little way forward, understanding the best options available to you can be difficult. That's especially true when every option will still be difficult, as is often the case for those whose debt has become unmanageable. At that point, debt relief and bankruptcy are the two tools available, but many people do not understand the differences between them and the choices involved.
To many people, debt consolidation sounds like a solution to debt problems. By consolidating credit card debt into one loan, debtors can reduce their monthly payments and pay a lower interest rate.
There many myths about bankruptcy and taxes. Some experts say that tax debts are not dischargeable. Others say they are.
Some people with serious debt problems try other ways to fix the problem before considering bankruptcy. Unfortunately, some of those fixes can result in the loss of assets that could have been saved by filing bankruptcy sooner.
You may have heard that you cannot protect equity in your home when you file bankruptcy in Pennsylvania. This is not the case. Under federal bankruptcy laws, you can protect up to $23,675 in equity for a primary residence when you file Chapter 7 bankruptcy.