Exploring bankruptcy options in Allentown, PA

If you are considering filing for bankruptcy Allentown, PA located, you should consult with a local, experienced lawyer to help you determine the best options for you. There are different types of bankruptcy filings available to individuals and business owners who are experiencing financial distress. Having a basic understanding of your options will help you best prepare for the road ahead.

Chapter 7 Bankruptcy

Chapter 7 filing allows you to have a fresh start by eliminating most if not all of your consumer debt. Under a Chapter 7 filing in Pennsylvania, you will be able to discharge your unsecured debt while retaining your assets. As long as your payments on your home and car are current, you will be able to retain them as well as other personal property. Under bankruptcy law, you will not be able to discharge secured debt and so it is imperative to keep up with all secured debt payments prior to and during the bankruptcy proceedings. In addition, child support and student loan debt are also not eligible to be written off in bankruptcy.

A Chapter 7 bankruptcy, Allentown, PA attorney can meet with you to discuss your rights and asset protections strategies. Chapter 7 will help to eliminate most unsecured consumer debt such as credit card debt and payday loans. However not everyone will qualify for a Chapter 7. Eligibility requirements and income restrictions are set in place to prevent unrestricted use of this filing option. Individuals who do not meet the income guidelines and requirements for a Chapter 7 filing may wish to consider filing Chapter 13 bankruptcy.

Chapter 13 Bankruptcy

Filing for a Chapter 13 Bankruptcy Allentown, PA may be a good option for individuals interested in restructuring their debt through a specific repayment plan. The repayment plan is usually anywhere between three to five years and involves a detailed description of which debts will be repaid and in what monthly installments. Filing for Chapter 13 can help you avoid foreclosure and auto repossession. It will allow you to retain your assets while catching up with past due payments over a sixty month time period.

Filing for Chapter 13 will establish legal protections against further debt collection attempts. Bankruptcy law in Pennsylvania and nationwide prevent debt collectors from contacting you or continuing to collect a debt once you have officially filed. This allows for increased peace of mind while you are working towards an improved financial situation.

Although the decision to file for bankruptcy is not always an easy one, in many cases it is a necessity. Utilizing the assistance of a skilled and experienced legal professional can help you navigate the laws and work toward a successful and improved financial outcome.



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