Bankruptcy affords those who cannot keep up with their debts and bills a financial do-over. Federal law grants the right to file for bankruptcy, but the legalities are complex, which makes it advisable to proceed with skilled legal counsel on your side. To obtain the financial relief you need in Lebanon, PA, consult with our experienced business attorneys at Mette Attorneys at Law today.
Bankruptcy Relief
As a debtor, or as the person seeking bankruptcy relief, you can file for bankruptcy as a means of achieving one or more of the following:
- Having all or most of your pending bills discharged, which means eliminating them
- Retaining most or all of your assets that would otherwise have gone to your creditors
- Gaining additional time to pay your pending bills, which could apply if you have a regular income
The most common forms of bankruptcy for individuals are Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy
Those who qualify for Chapter 7 bankruptcy can eliminate most or all of their unsecured debt, which refers to things like medical bills and credit card debt. While many assets are exempt from liquidation in a Chapter 7 bankruptcy, some are not.
Exempt assets generally include the basics, such as your house, car, and household goods. Items like the following, however, typically are not exempt and must be liquidated to pay off any non-dischargeable debt:
- Expensive vehicles
- Valuable collections
- Jewelry
- High-value items
An important point to keep in mind is that there is an exemption limit for Chapter 7 bankruptcy. This means that, if your equity in your home or the value of your car exceeds this limit, you could be required to sell. Chapter 7 bankruptcy is often referred to as a fresh start bankruptcy.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also called the wage earner’s plan. It allows those who earn a regular paycheck or income to repay their debts over three to five years. In other words, Chapter 13 bankruptcy provides a means to reorganize your debt and potentially protect your assets. This can include protecting your home from foreclosure.
If you qualify for Chapter 13 bankruptcy, filing can stop the foreclosure process and, with time, can help you cure delinquent payments. It’s important to note, however, that you’ll need to keep up with your mortgage payments as you move through the Chapter 13 bankruptcy process.
Our Bankruptcy Lawyers Can Help
If you feel as if you’re drowning in debt with no hope in sight or have a steady income but are facing foreclosure on your home, bankruptcy could offer the financial lifeline you’re looking for. While bankruptcy is a complicated legal matter, we offer the communities of Lebanon, PA, comprehensive services. We will leave no stone unturned in our focused efforts to help you obtain a fresh financial start. For more information, don’t delay contacting us online or calling us at 717-232-5000 today.