Your Trusted Pennsylvania Bankruptcy Attorney
There is an answer to your financial trouble. You can get out of debt and back on your feet financially without losing your property. You can recover and rebuild after a financial crisis. Contact our Pennsylvania bankruptcy attorney for a free bankruptcy consultation to discuss how filing a bankruptcy case can get rid of debts and make tomorrow better for you and your family.
Why Do People File Bankruptcy in Pennsylvania?
The reasons for filing bankruptcy are as different as the people who seek bankruptcy relief. In many cases, the reason for filing bankruptcy in Pennsylvania is a financial hardship caused by a life event beyond the person’s control.
Reasons why someone may need to file Chapter 7 or Chapter 13 bankruptcy include:
- Unemployment and other decreases in income;
- The death of a family member, spouse, or domestic partner;
- Illnesses and accidental injuries that result in massive medical bills;
- Divorce or separation from a longtime domestic partner;
- Development of a disability or permanent impairment; and,
- Failure of a business venture.
In some cases, a person may need to file bankruptcy because of credit card overuse or mismanagement of finances. Regardless of the reason why you may need bankruptcy help, you can eliminate debts you cannot pay through the bankruptcy system.
The bankruptcy system is available to anyone who cannot afford to pay their debts. Bankruptcy offers hope for a fresh start. It is free from the burden of debt that prevents you from recovering from a financial crisis that was not within your control.
Benefits of Filing for Bankruptcy Relief
For many people, the benefits of filing bankruptcy outweigh any disadvantages, such as a temporary reduction in credit scores. Advantages of filing bankruptcy include:
- Get rid of debts you cannot pay, including medical debts, credit cards, personal loans, judgments, and much more;
- Stop creditor harassment;
- Stop foreclosures, repossessions, wage garnishments, and debt-collection lawsuits.
- Get rid of deficiency judgments and personal judgments;
- Get out from under debts in which you owe more to the lender than the property securing the loan is worth;
- Stop sleepless nights, arguments about financial trouble, anxiety, and emotional distress about money problems;
- Protect property from creditors by using bankruptcy exemptions; and,
- Get a fresh start to take control of your finances.
Learn more about how a bankruptcy filing can help you by calling a Pennsylvania bankruptcy lawyer near you.
Should I File a Chapter 7 or Chapter 13 Bankruptcy Case?
Choosing between Chapter 7 and Chapter 13 can be difficult. Most people prefer to file under Chapter 7 because many Chapter 7 cases are completed within four to six months. Debtors in no-asset Chapter 7 cases can eliminate their debts in about six months without losing any property.
However, you must meet the income requirements for Chapter 7 to receive a bankruptcy discharge. The bankruptcy discharge eliminates your legal liability to repay discharged debts.
A Chapter 13 case is a reorganization case. Through Chapter 13, you restructure your debts in a Chapter 13 repayment plan administered by the court. Filing Chapter 13 can help you keep your home and your car. You can also pay tax debts and domestic support obligations (alimony and child support) over several years, which are not dischargeable in bankruptcy.
Spreading out debts you cannot discharge and paying unsecured creditors pennies on the dollar make Chapter 13 an affordable way to get out of debt if you earn too much money to file Chapter 7.