As of May 1, 2018, a family of 4, living in Pennsylvania, is eligible to file Chapter 7 Bankruptcy if they make $94,645.00 A single person household is eligible if they make $53,067.00. Even if you make more, you may still be eligible to file under Chapter 7.
Attorneys fees for Chapter 7 Bankruptcies start as low as $1,500.00.
You can stop harassing creditor phone calls today. Call us and find out how to protect your home, discharge debt and begin to rebuild your credit - immediately.
Chapter 7 Bankruptcy
There are several different Chapters of bankruptcy which may be available to you. We practice them all! Chapter 7 is, by far, the most popular.
Chapter 7 is a dissolution. At its basest, this means that we take all of your assets and sell them to pay off as much of your debt as possible - and then we dismiss the remainder of the debt. If it were this harsh, however, everyone who filed for bankruptcy protection would end up on the public dole.
Instead of creating such a mess, Congress, when it created the Bankruptcy Code, created exemptions. For instance, a couple can protect up to $46,000.00 in equity in their home. (As of February, 2018). There are many other exemptions that mean that the vast majority of individuals and couples filing for bankruptcy protection end up losing no assets at all.
Meanwhile, you can wipe out your entire indebtedness on a whole host of debts. These include:
a. Credit card debt;
b. Medical debt;
c. Unwanted secured debt;
d. Past due rent and utilities;
e. Payday loans;
f. Some tax debt;
g. In exceptional circumstances, even student loans.
HOW IT WORKS:
Once you have completed a questionnaire, your attorney will prepare your petition, schedules and other forms. These will set out your assets, debts, income and expenses. They will also indicate which property you intend to exempt. Again, in the vast majority of the cases, all of your property will be exempted.
Meanwhile, you will complete an easy round of counseling and get the certificate to your attorney.
Once you have reviewed your petition, it will be filed with the court. About 6-8 weeks later, you will be scheduled for your First Meeting of Creditors. This sounds like an intimidating meeting where you have to face your creditors. Nothing could be further from the truth. In fact, in all likelihood, the only individual who will show up for the Meeting of Creditors is the Trustee. He will have about 10 minutes worth of questions for you. Then you're done.
Assuming all goes well at the Meeting of Creditors, you will do a second round of easy counseling and 6-8 weeks later, your debt will be discharged, your case will be dismissed and you will be finished.
What does a discharge mean? It means, quite simply, that you no longer owe the debt and nobody can harass you to pay any longer.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is substantially similar to Chapter 7; and yet, it has strong differences. You still file your petition, still do your counseling, still are entitled to exemptions and still must attend a Meeting of Creditors.
But the type of relief is different. A Chapter 13 is a "reorganization" as opposed to a "dissolution."
So, after the Meeting of Creditors, you propose a plan to pay back some portion (based upon what you can afford) of your debt. So, Chapter 13 is what is known as a "wage earners" option. You have to be earning enough money to afford to pay back debt in order to be able to file for Chapter 13.
Your plan will typically last from 3 to 5 years. You will make a payment every month to the trustee and the trustee will distribute that payment to your creditors. At the end of the term, like a Chapter 7, your remaining unsecured debt is discharged and your case is dismissed.
There are substantial other options. These vary from Chapter 11 (usually a business bankruptcy) and Chapter 12 (usually a farmer or a fisherman) - to negotiating with your creditors. We are able to help you, whatever your circumstance. Making sure your home, your family and your peace of mind are secure are our highest priority.