Chapter 7 Bankruptcy:
Discharge Credit Cards, Medical Bills, Personal Loans and Gambling Debt
For people who have an average income, Chapter 7 bankruptcy offers several significant benefits to individuals in York, Lancaster, Lebanon, and Harrisburg who are facing overwhelming debt.
Chapter 7 provides a fresh start by granting a discharge of most unsecured debts, such as credit card bills and medical expenses without having to payment anything back to creditors. This means that you are relieved of the legal obligation to repay these debts, allowing you to regain control of your financial life.
The discharge typically occurs within a few months of filing for Chapter 7, providing a relatively swift resolution to your debt problems. While you are in bankruptcy, you are protected by the automatic stay and cannot be sued or harassed by creditors.
Stop Debt Collection, Lawsuits, Evictions, Mortgage Foreclosure, Sheriff Sales and Real Estate Tax Sales
Chapter 7 bankruptcy imposes the “Automatic Stay,” which is a court order that functions as a shield immediately halting most collection activities, including lawsuits, creditor harassment, wage garnishments, Car Repossessions, Evictions and Foreclosure Proceedings, Tax Sales and Sheriff Sales. This stay provides individuals with immediate relief from the stress and pressure of debt collectors, giving them the opportunity to focus on rebuilding their finances without constant harassment.
Keep Your Home, Retirement, Assets and Employment
You will not be left destitute if you declare bankruptcy!
With Proper Planning in most cases my clients Retain their Homes. If this is not possible, then I educate my clients so that an informed decision is made. If the homeowner is current on mortgage payments and has minimal equity in the home, most homeowners can keep the property by continuing to make payments after bankruptcy. However, if the homeowner is behind on payments or has significant equity in the home, then Chapter 13 Bankruptcy should be considered.
Finally, Bankruptcy Law prohibits employers from Discriminating Against You because you have declared bankruptcy. You will not lose your job and in most cases, no one except your creditors is aware of the bankruptcy.
Exemptions for Home Furnishings, Jewelry, Educational 529 Plans and Retirement Accounts and Tools of the Trade ensure that you will be able to retain these kinds of assets.
Keep Your Vehicle and Protect Vehicle Equity: Vehicle Redemption and Reaffirmation
In most cases, Debtors who file Chapter 7 can retain their vehicles either through two ways: Redemption and Reaffirmation. If your car has already been repossessed, but not yet been sold at auction, Chapter 7 can get your vehicle back if you can resume making the payments.
Redemption occurs when the Debtor pays the cash value of the vehicle in full satisfaction of the secured lien against the vehicle. A vehicle equity is also usually exempt, with proper exemption planning.
Reaffirmation is an agreement which maintains the status quo and payments continue under the same terms from before the bankruptcy.
