A city councilor in another state recently decided that his financial situation was beyond what he could handle on his own. He therefore decided to file for personal bankruptcy. Individuals in Pennsylvania who are struggling to make ends meet can likewise take full advantage of this type of bankruptcy filing.
In his Chapter 7 filing, the city councilor listed more than $837,000 in assets along with more than $1.74 million in liabilities. The biggest of the councilor’s liabilities are related to business. In fact, his top creditors are banking institutions with which the bank has worked during the past decade.
One of the banks listed as a creditor is owed more than $595,000. Meanwhile, another bank is due more than $140,000. The man said that he and his wife could not pay the loan they had with the first bank, so his only option was to go through the bankruptcy process. The pair had taken out the loan on a café’s behalf and personally guaranteed it.
Sometimes, economic or business situations change, thus causing an individual to end up with far more liabilities than assets. However, in these situations, all is not lost. People who are having a hard time financially can file for personal bankruptcy with the goal of getting on the path to financial peace again. Of course, the filing process can be complicated for those who have never been through it before. Fortunately, an attorney can walk individuals in Pennsylvania through the bankruptcy filing process, ensuring that their best interests and rights are upheld each step of the way.