Chapter 7 eliminates debts without repayment.
When you file chapter 7, all of your unsecured debts are completely eliminated. The types of debts that are erased are credit card, utility, medical, dental, payday, repossession, sheriff sale, judgments, etc. Student loans, unfortunately, are not eliminated.
Our office will analyze your income and many other factors including your expenses and needs of your family to determine if you qualify. If you do, you will receive a discharge of your debts, you will keep all of your assets and you will be on your way to a new financial start.
Should You File For Chapter 7 Bankruptcy?
Debt is often a fact of life. According to a study conducted by the Pew Charitable Trusts, eight out of 10 people carry some type of debt with the most common debt being a mortgage. It also found that this debt is not limited to young people just starting out. People are increasingly taking on debt later in life. While debt is a burden for many, others view it as a necessity.
The Pew study found that 69 percent of Americans felt that being able to carry non-mortgage debt enabled them to make purchases that expanded their opportunities. But, what happens when this debt gets out of control and becomes an impossible burden? If this happens to you, perhaps a Chapter 7 bankruptcy can help you.
What Are The Benefits Of Filing Chapter 7 Bankruptcy In PA?
Receive A Clean Slate
While a Chapter 7 cannot discharge certain types of debt, such as child support, alimony, student loans, taxes and fraudulent debts, it can discharge common debts including credit card debt, medical bills and other unsecured debt. Those seeking a Chapter 7 bankruptcy are often in heavy debt and have little assets. Filing a Chapter 7 can usually wipe out all this debt and give you a fresh start.
Keep Your Home And Car
You might hear the word bankruptcy and think that means you will automatically lose your home, car and any other large assets you own. This is not true. To keep these assets, you will be required to sign a Reaffirmation Agreement which basically states that you cannot file bankruptcy for those assets for eight years and you must repay those debts.
In order to sign a Reaffirmation Agreement, such debts must be current. Therefore, if you are three months behind, you must pay and make the debt current. You can also exempt certain property and protect it from creditors once you file bankruptcy. Pennsylvania law allows you to use the federal exemption statutes versus Pennsylvania exemptions. Read more about exemptions here.
No Minimum Debt Requirement
With a Chapter 7 bankruptcy, you don’t have to have a certain amount of debt. You can file with as little or as much debt as you prefer. People with a heavy debt load might be trying to discharge several thousands of dollars while others have a few credit cards they feel will be impossible to pay back.
You might have been facing debt issues for years. Your debt did not accumulate overnight. However, the good news is that when filing for Chapter 7 bankruptcy, the process is surprisingly fast. Most cases can be resolved and closed within three to six months from start to finish.
Stop Creditor Calls And Garnishments
If creditors are worrying you with constant phone calls demanding immediate payment, a Chapter 7 will stop those calls. Once you file for bankruptcy, all the creditors included in the claim will receive a notice that you have filed for bankruptcy at which point they must cease communication with you. You will also protect your wages from garnishment. Creditors might have a judgment against you, but they will no longer be able to garnish your wages.
While no one likes debt or wants to be in a situation where repayment seems impossible, it happens. It is so easy to use credit for large purchases when it is so readily available and easy to attain. But, the situation becomes difficult when it’s time to repay.
If you’re drowning in a sea of debt, then you might consider Chapter 7 bankruptcy. Starting that process also comes with having a good bankruptcy attorney. Jeanne Marie Cella, Esq is the right attorney for you if you are looking for to start fresh and are located in the Media, Delaware County area. From there on your focus should then be to use credit wisely. Be responsible and reasonable with the amount of debt you acquire by determining beforehand if you can afford to repay the debt. Some people prefer to use cash and live by the philosophy that if they cannot afford to pay for it on the spot, then they can’t afford it. That same thought process could serve you well.