Helping Pennsylvania Residents Manage Overwhelming Debt
Managing your finances seems like a torturous task, especially when it means addressing substantial debt. Fortunately, you have options to help you get out from underneath your debt.
Filer & Schwab has been strengthening eastern Pennsylvania communities through quality legal advice since 1976. Our legal team has built an excellent reputation based on skill and knowledge in bankruptcy law both in Pennsylvania and across the country.
If you are looking to discuss your bankruptcy options, contact our office in Lehighton to schedule a free consultation.
Chapter 7 Or Chapter 13: What’s Right For You?
Filing for bankruptcy offers you an opportunity to reduce or eliminate your debt. Chapter 7 and Chapter 13 are the two most common forms of bankruptcy used by individuals, but determining which one you should file can be confusing.
Chapter 7 – Chapter 7 is a liquidation bankruptcy. Your property, like your house, car or even retirement accounts, are sold to pay your debts. Some items, like health aids, are exempt from being liquidated to pay your debts. The state and the federal government have different lists of what is considered exempt from liquidation. In Pennsylvania, you can choose which list you want to abide.
If you do not have the income to repay any of your debts, you may be eligible for Chapter 7.
Chapter 13 – Chapter 13 is a reorganization bankruptcy. Instead of selling your property, you propose a repayment plan for your debts using regular payments over three to five years. As long as you complete your repayment plan successfully, your unsecured debts — like credit card debt or hospital bills — may be discharged.
If you have a regular income, but one that is currently insufficient to pay off your debts, Chapter 13 may be an option.
Understand The Consequences First
Although debt relief sounds attractive, no one should file for bankruptcy without careful thought and planning.
While excessive debt may have already damaged your credit score, filing for bankruptcy can make rebuilding your credit more difficult. Chapter 13 will appear on your credit report for 7 years, and Chapter 7 will appear on your credit score for 10 years.
A poor credit score can affect your ability to secure lines of credit in the future and cause your interest rates to skyrocket.
Make An Informed Decision. Contact Filer & Schwab.
Without the help of an experienced bankruptcy professional, you may make a mistake that has lifelong financial consequences. Our legal team can work with you to decide what debt relief options are best for you and help you get started with the filing process.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.