The Law Office of Attorney John Fisher LLC in Kingston, PA Bankruptcy

Chapter 7 Bankruptcy in Kingston, PA

Chapter 7 bankruptcy is often referred to as a “liquidation” bankruptcy because it can discharge many types of unsecured debt, including credit card debt, medical bills, personal loans, and more. If you qualify for Chapter 7, you can experience a fresh financial start in just a few months.

Here’s how Chapter 7 can benefit you:

Debt Elimination: Chapter 7 can discharge unsecured debts such as credit card balances, medical expenses, and personal loans. Once your case is discharged, these debts are legally wiped out.

Quick Resolution: Unlike other forms of bankruptcy, Chapter 7 typically takes only a few months to complete. This fast process can help you regain your financial freedom sooner.

No Repayment Plan: With Chapter 7, there’s no long-term repayment plan. Once your case is discharged, you’re free from your qualifying debts, without needing to make ongoing payments.

Relief from Creditor Harassment: The automatic stay imposed when you file for bankruptcy prevents creditors from continuing collection efforts, such as harassing phone calls, wage garnishments, or legal actions.

Chapter 13 Bankruptcy in Kingston, PA

For individuals who have regular income but need help managing their debts, Chapter 13 bankruptcy offers a repayment plan that allows you to repay all or part of your debts over a 3 to 5-year period. Unlike Chapter 7, you will not need to liquidate assets under Chapter 13, and you may be able to keep your home and other property while working through your financial challenges.

Benefits of Chapter 13 Bankruptcy

Manageable Repayment Plan: Chapter 13 allows you to consolidate your debts into one affordable monthly payment. The amount of this payment is based on your income, expenses, and the total amount of debt you owe.

Protection from Foreclosure: If you’re behind on mortgage payments, Chapter 13 can help you avoid foreclosure by allowing you to catch up on missed payments over time, keeping your home safe.

Keep Your Property: Unlike Chapter 7, Chapter 13 doesn’t require you to sell your assets. As long as you stick to the repayment plan, you can keep your property, including your home, car, and personal possessions.

Debt Relief from Tax Debts and Child Support: Chapter 13 may also offer relief for tax debt, overdue child support, and other types of debt that are not typically discharged in Chapter 7.