We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
PA Bankruptcy Law Center
196 W Ashland Street Doylestown, PA 18901
What is Chapter 7?
In general there are two types of Bankruptcies for debtors. First, there is a Chapter 7 Bankruptcy which is basically a straight winding up of your debts. This means most if not all of your unsecured debt will be liquidated or satisfied. This type of Bankruptcy is designed for debtors who do not make a lot of money and do not have a lot of assets.
A Chapter 7 Bankruptcy provides a way for you, the debtor, to liquidate most unsecured debt. This would include credit card bills, unsecured loans, medical bills, store credit cards, deficiency claims such as money owed on a repossessed motor vehicle. (A secured creditor is one who has a lien or interest in specific real or personal property and has a right to sell or repossess that property if you do not pay the debt on it.)
The following types of debt are not dischargeable in a Chapter 7 Bankruptcy:
1) Recent taxes or taxes for which returns have not been filed or filed less than two years before the Bankruptcy;
2) Debts that were obtained through fraud;
3) Alimony, spousal support, child support and property settlement obligations stemming from divorce proceedings;
4) Debts for willful and malicious injury to another person or property of another person; and
5) Certain fines, penalties or forfeitures payable to the government.
What is Chapter 13?
The other type of Bankruptcy for debtors is called a reorganization or Chapter 13 Bankruptcy. This type of Bankruptcy is employed by debtors when they make too much money to qualify for a Chapter 7 Bankruptcy or you have too much equity in your assets, such as your home. In a Chapter 13 Bankruptcy your debts are not liquidated. Generally a repayment plan is filed with the court for your secured and unsecured debts that usually lasts from 3 to 5 years. At the end of the repayment period your debts can be discharged. This type of Bankruptcy is used if you are behind on your mortgage or car payments and will stop the foreclosure or repossession process.
There are several advantages to filing a Chapter 13Bankruptcy. Under a Chapter 13 Bankruptcy the debtor may retain their assets which otherwise would be liquidated and distributed to creditors in a Chapter 7 case. Also, certain modifications may be made in the repayment terms of other secured obligations. Examples include lower monthly payments or extending the overall payment period e.g. extending the period from 6 to 12 months.
Whether you file a Chapter 7 or Chapter 13 Bankruptcy the ultimate outcome is a discharge order which directs the creditors to make no further attempts to collect upon your debts. This will put an end to collection calls, lawsuits, and wage garnishments and put you on the right path moving forward.
This Is What I Need To Help You
WHAT I NEED TO KNOW
1) We need documentation all of your credit information. This means all of the creditors you are financially obligated. This includes getting your credit report from all three agencies.
2) All of your monthly income and expense information including your wage information or W-2s or 1099s if you are independent contractor or self-employed. This includes monthly bank account statements and any other documentation to show your income.
3) All of your assets and any liabilities or liens. This may also include information from #1 your credit information. Documentation of mortgages, home equity loans, lines of credit, monthly bills – cable, electric, water, etc.
4) Your tax returns for the previous two years.
5) Prior to filing for Bankruptcy you are required to complete Consumer Credit Counseling with an approved credit counseling agency. Usually, this can be done over the phone and is a review of your financial situation and a discussion of your options with a credit counselor. After your options are discussed you may decide that the Bankruptcy process is your best choice. You are required to get a certification from the credit counselor for your Bankruptcy filing.
6) In a Chapter 7 case a second credit counseling is also required after the filing. This must be done and filed with the Court no later than 45 days after the First Meeting of Creditors.