Chapter 13 Bankruptcy
There have been many statements made in recent years regarding the new Bankruptcy Law that went into effect in 2005. Most of this “information” has made people believe that they cannot file for bankruptcy protection anymore. This is nothing but rumor. Today, most people that cannot afford their bills can still file for bankruptcy relief and protect their assets. In the process, they can stop harassing creditor calls, stop foreclosure proceedings and other sheriff sales and regain financial stability.
The process for obtaining debt relief involves a few more steps. Individuals must now go through credit counseling sessions, financial management courses and qualify under a means test in addition to fully disclosing their financial situation to their bankruptcy lawyer. While this process has become a bit more complicated, it rarely prevents individuals struggling with their debts from filing bankruptcy. It is intended to help you to understand your current finances, better manage finances in the future, and ensure that you are filing the appropriate type of bankruptcy.
In a Chapter 13 Bankruptcy, as in a Chapter 7, most individuals can file for relief from their debts without losing their property. There are three main reasons why our clients need a Chapter 13 Bankruptcy. First, they may have more income than they need to live on each month, but not enough to cover all of their credit cards and other unsecured debts. Second, they may have more equity in their property than is protected under the various bankruptcy exemptions. Third, they may be behind on debts secured by property that they wish to keep. For instance, they may be facing foreclosure or repossession of a vehicle.
A Chapter 13 Bankruptcy can help you restructure and/or come current on mortgage payments and car payments. It can help you to restructure tax debts, student loans, child support arrears, etc. It can also be used to reduce and even eliminate the amounts paid to your unsecured creditors, including medical bills, credit cards and personal loans.
As with Chapter 7 Bankruptcy, you can protect your home, cars, 401(k)’s, pension plans, bank accounts and other property. Pennsylvania has adopted two methods of protecting your property: federal exemptions and state exemptions. The vast majority of cases result in the debtors protecting all of their property because of these exemptions. You may even be able to protect property not otherwise covered by the exemptions.
There are a few items that you should understand. While the bankruptcy will discharge some or all credit card bills, medical bills, repossession balances and other unsecured debts, you may still be responsible for your secured debts, such as car payments and mortgage payments, if you wish to keep the property securing those debts. Also, certain debts, such as some taxes, child support and student loans are not dischargeable and will still need to be paid.
With the careful consideration and examination of your income, expenses, assets and debts, Attorney Spoto can help you decide if Chapter 13 Bankruptcy is right for you. Attorney Spoto is a local Southwestern Pennsylvania lawyer that is experienced in Chapter 7 and Chapter 13 Bankruptcy filings as well as in debt negotiation and debt settlement. He is dedicated to helping the residents of Westmoreland, Fayette, Washington, Greene, Allegheny, Indiana, Somerset and Cambria counties take control of their debts.
Before you call a number that you saw flashed on the television for some debt negotiation company or debt settlement company, call our offices today. We will help you make the right choice for you and avoid potential scams.
Proudly serving Belle Vernon, Uniontown, Connellsville, Charleroi, California, Waynesburg, Washington, Pittsburgh, Somerset, Greensburg, Irwin, New Stanton, Johnstown, Indiana, the Mon Valley, Perryopolis, and other Southwestern PA communities.
Chapter 7 Bankruptcy
File Chapter 7 - a clean slate, a fresh start
In a Chapter 7 Bankruptcy, sometimes referred to as liquidation, most individuals can file for relief from their debts without losing their property.
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