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| Pennsylvania |
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When Congress, with President Bush’s approval, overhauled the bankruptcy system in 2005, few could have predicted the magnitude of the changes. For people in Pennsylvania, a state already dealing with its own share of financial problems, the new laws came at a difficult time. Far more strict and harsh in their application, the new laws were already successful in preventing bankruptcy filings (as statistics below show), and this was achieved in a number of ways. None is more important, however, than the introduction of the bankruptcy means test. This has to do with the fact that debtors who earn more than the median income of Pennsylvania (and every other state) have their income and expenses scrutinized to determine whether a repayment plan through Chapter 13 is a viable option. If it is established that this is the case, the debtor is required to file Chapter 13 (unless they show “special circumstances”) instead of having most of their debt forgiven in Chapter 7 (in most cases). The following details the median income information for Pennsylvania as of 2006: 2-person families: 49,226 3-person families: 61,733 4-person families: 74,072 5-person families: 71,176 6-person families: 69,246 7-or-more-person families: 63,723 Due to the credit effects of bankruptcy, more consumers in Pennsylvania are turning to debt solutions like credit card negotiation and debt consolidation. These programs are able to save people money without the same severe credit damage caused by bankruptcy. To get a free consultation about these debt options, submit a form today! Feel free to check out our resources about Pennsylvania debt/credit topics: Pennsylvania Consumer Credit Counseling Services ennsylvania Bankruptcy Laws Pennsylvania Debt Collection Bankruptcy Filings in Pennsylvania 2004: 58,164 2005: 77,587 2006: 23,190 Pennsylvania financial picture has improved somewhat since 2004, at least from the standpoint of unemployment figures (down from 5.5 to 4.3 in January of 2006). That being said, this alone does not account for the dramatic decrease in the number of personal bankruptcy filings between 2004 and 2006, and it is clear that the brunt of responsibility for this drop has to do with the implementation of the new bankruptcy law in October of 2005. In all the decrease in filings amounts to 54,397 less cases in 2006 than in 2005, which is a 70 percent difference. With debt & financial worries still prevalent in the state, more Pennsylvanians are turning to debt consolidation solutions like credit card debt counseling and debt settlement programs. |