Bethlehem Bankruptcy Attorneys Help Determine Which Bankruptcy Options are Best for PA Consumers
Do I file Chapter 7 or Chapter 13 bankruptcy?
Chapter 7 and Chapter 13 provide the individual consumer with different types of benefits and opportunities. Choosing which type of consumer bankruptcy is most suitable for your particular situation will depend on your long term and short-term goals. Discussing your situation and goals with our competent and experienced Pennsylvania bankruptcy attorneys is your first step.
- Unsecured debts —The primary benefit you will have from filing Chapter 7 bankruptcy is the elimination of most or all of your unsecured debt.
- Secured debts — Chapter 13 can also help eliminate some or all of your unsecured debt, but the main benefit of Chapter 13 is the ability to help you with secured and tax debt. Filing Chapter 13 can stop foreclosure on your home or repossession of other types of secured collateral, like your car and it can be used to help you address back taxes.
Timing of debt relief
- Chapter 7 — When you file Chapter 7 bankruptcy, you can get a discharge in a shorter amount of time than in Chapter 13. The typical Chapter 7 case is discharged four to six months from the date you file your petition with the court.
- Chapter 13 — Chapter 13 allows for a repayment plan through a court; a typical repayment plan lasts 36 to 60 months. When you complete the court’s repayment plan, you will be debt free and up to date on payments for your home and car.
- Chapter 7 — Chapter 7 provides for shelter of your assets through laws called “exemptions.” While the exemption laws are not unlimited, they are adequate to enable most people to shield all of their assets from seizure.
- Chapter 13 —Another primary benefit of filing Chapter 13 is protection of your valuable assets from seizure by your creditors. For example, if you own your home or vehicle that is paid in full, or has substantial equity, Chapter 13, like all bankruptcies, will stay collection action by creditors. In addition, Chapter 13 allows you to create a payment plan that will be used as an alternative to liquidation of your assets in a Chapter 13. And when your payment plan is complete, you will be discharged from your debts and continue to own your assets.
Connect with a bankruptcy attorney in Bethlehem, Pennsylvania
To fully understand how these laws affect you and your family, please contact our Lehigh Valley bankruptcy attorneys to discuss your case. Our three offices are conveniently located in Lancaster, Malvern, and Wyomissing. Contact Case & DiGiamberardino P.C. by 610.372.9900 or online.