Pennsylvania Bankruptcy Facts

Are you struggling with large amounts of debt? Do you have creditors calling you around the clock, harassing you to pay up? Do you feel as though there is no way out of the financial rut you are in? If so, help is available to you right now through bankruptcy protection.

Bankruptcy was initially a way for creditors to claim the money they are owed but has evolved as a method for debtors to surpass their debt. With the ability to file voluntarily now, debtors can put creditors at bay and pay down their debts quickly and under court protection. If you live in Pennsylvania and are searching for fast debt relief, we have got you covered. Contact one of our experienced bankruptcy attorneys to discuss your best options in filing a case and resolve your financial matters as quickly as possible.

Learning About Bankruptcy Protection

Bankruptcy can reduce or even possibly eliminate your unsecured debts, which are debts that are not backed by assets. You can expect to get rid of credit card debt, debt stemming from medical bills, lawsuits, or even business expenses, but other kinds of debts, such as child support, alimony and certain IRS debts cannot be discharged.

There are several kinds of bankruptcy chapters that can be filed by both individuals and businesses, but the two most popular in Pennsylvania are Chapter 7 liquidation bankruptcy and Chapter 13 reorganization bankruptcy. Chapter 7 eliminates most, if not all of your unsecured debt in exchange for the liquidation of your assets. This is the most commonly filed petition because both individuals and businesses may qualify and it only takes a few months to exit proceedings. There are also certain exceptions to what assets can be seized and liquidated. For example, a debtor’s home, clothes, certain family heirlooms, and retirement accounts cannot be seized. Your bankruptcy lawyer can provide you with a full list of exemptions so you can be fully aware of what to expect when you file.

To qualify for Chapter 7, debtors must pass the “means test.” This test reviews a debtor’s income for the six months immediately preceding the petition and if the average income amount is lower than the average for a family of the same size in Pennsylvania, then the debtor automatically qualifies. However, there are exceptions to that rule with an experienced bankruptcy attorney can work around. Often, if the debtor cannot cover at least 25 percent of what they owe to creditors, Chapter 7 may be filed.

The second most popular petition in Pennsylvania is Chapter 13 reorganization bankruptcy. Instead of liquidating assets to pay off debt, this chapter allows debtors to keep their property, but requires them to pay off their debts through a payment plan lasting anywhere between 3 to 5 years. It is easier to qualify for Chapter 13 bankruptcy protection because debtors need to have a consistent flow of income in order to be allowed to repay creditors over an extended period of time. However, only consumers can file this chapter.

Working with an Experienced Pennsylvania Bankruptcy Lawyer

Are you sick and tired of dealing with creditors? Do you want to get rid of your debt once and for all? If so, all it takes is just one phone call to one of our featured Pennsylvania bankruptcy attorneys and you can be on your way to becoming debt free. Our featured legal professionals will determine if you are eligible for bankruptcy protection, which chapter is best for your needs, and will stand by your side every step of the way to protect your rights and handle every aspect of your case so you won’t have any worries.

Call to get started with a top bankruptcy lawyer in Pennsylvania today to discuss your options and obtain the debt relief you deserve.