Right here in Pennsylvania, the founders made provision for bankruptcy when they signed the United States Constitution. Taking on debt is always a risk, and life seldom turns out the way we plan. That’s why the compassionate Carlisle bankruptcy lawyers at Mette Attorneys at Law are here to help you get a fresh start. Discuss the benefits and drawbacks of filing for bankruptcy in Pennsylvania with our dedicated debt relief team by calling (717) 232-5000 or schedule a case evaluation online.

Debts Dischargeable in Bankruptcy

Both individuals and businesses can file for bankruptcy in federal court. By doing so, any collection actions and litigation against you are paused by the automatic bankruptcy stay. This gives you immediate relief as your case is analyzed by legal professionals. If the court approves your bankruptcy petition, the following debts may be partially or completely discharged:

• Credit cards
• Mortgage deficiency
• Auto loan deficiency
• Medical bills
• Unpaid utilities
• Personal and payday loans
• Personal injury judgments
• Student loans (undue hardship only)

However, the bankruptcy court cannot and will not discharge certain debts such as child support arrears, alimony, money owed to the IRS, judgments from litigation involving intentional or criminal acts, or debts obtained through fraudulent or criminal conduct. Our experienced Carlisle debt relief and bankruptcy attorneys can analyze your financial situation to determine whether filing for bankruptcy is the best option. If not, we might still help you challenge, negotiate, or restructure your non-dischargeable debts.

Choosing the Right Type of Bankruptcy Proceeding

There are two main types of bankruptcy in Pennsylvania. The first requires the complete liquidation of all non-exempt assets, followed by the total discharge of any remaining eligible debts. The second involves restructuring your debts into a manageable payment plan with the potential for partial discharge upon plan completion.

Chapter 7 Liquidation

If your income is below a certain threshold, you may qualify for Chapter 7 liquidation. This requires the sale and liquidation of all non-exempt assets, generally including your home, vehicle, savings, stocks, and valuable collectibles. Any money collected by the trustee is then distributed to your creditors, and any remaining debts and deficiencies are completely discharged. This may be the best option if you have limited income and assets.

Chapter 13 (Wage Earner’s)

If you have a stable income but simply cannot manage your debts plus the cost of living, you might qualify to have your debts restructured under Chapter 13 of the Bankruptcy Code. This could allow you to keep your home, vehicle, and assets while stopping collections and harassment. With your attorney’s help, the trustee will consolidate your debts and calculate an affordable monthly payment over a 3-to-5-year repayment period. If you successfully complete the payment plan, the court will discharge any remaining debts.

Chapter 11

Like Chapter 13, Chapter 11 reorganization generally applies to struggling Carlisle businesses. It allows the business to continue operating under a reorganization plan while also paying its debts.

United States law also recognizes additional forms of bankruptcy for farmers and protections for service members. Our dedicated PA bankruptcy attorneys might help you file for the best type of bankruptcy in your case.

Bankruptcy Law Firm in Carlisle, PA

If you need a fresh start or simply time to reorganize your debts without continued harassment, contact the experienced personal and business bankruptcy lawyers at Mette Attorneys at Law today. Call our Carlisle debt relief team now at (717) 232-5000 or connect with us online.