Bankruptcy can help people who are dealing with an overwhelming amount of debt and need a fresh start. You have the opportunity to possibly erase some of your debts or work with the creditors to set up a reasonable repayment plan. There are several reasons why people file for bankruptcy, which include stopping their house from going into foreclosure, getting rid of medical bills, and eliminating student loan debt.Medical Bills
When you are getting treatment for a serious medical condition but don’t have the money to cover your medical bills, it can lead to financial hardship. If you don’t have adequate health insurance, it can be difficult figuring out how to pay for necessary medical treatment while also covering basic living expenses. Filing for bankruptcy will stop the constant calls and notices from bill collectors. You can eliminate your medical bills or set up an afforable payment arrangement. The options available to you will depend on your circumstances.Foreclosure
If you have missed mortgage payments, the lender may have notified you that they will begin foreclosure proceedings. If you are having a tough time with your finances, bankruptcy could be a viable option for you. Once you file for bankruptcy, the lender won’t be able to proceed with the foreclosure. You may be able to modify your existing loan and create a payment plan that is more manageable. If keeping the house is no longer feasible, you have the option of surrendering the home to the lender. A bankruptcy attorney in Pittsburgh can help you create a financial plan that best suits your needs.Student Loans
Having thousands of dollars in student loans can place a financial strain on your life. In order to get your student loan debt erased in bankruptcy, you need to prove that you are experiencing an undue hardship. You may be eligible to get the student loans discharged if you are unable to maintain a minimal standard of living; your circumstances will remain the same throughout a significant portion of the loan repayment period; and you’ve made a good faith effort to pay your loans. By performing a thorough assessment of your financial situation, a bankruptcy attorney in Pittsburgh will let you know if getting your student loans discharged is feasible.
You should fully understand the pros and cons of filing for bankruptcy before you make a decision. Consult a bankruptcy attorney in Pittsburgh regarding your financial situation. Taking the necessary steps to solve your debt problems can bring great relief to you and your family.