Benefits of Chapter 7 Bankruptcy in Wilkes-Barre, PA
Debt Relief:
Chapter 7 bankruptcy can discharge most unsecured debts, such as credit card balances, medical bills, personal loans, and more. This means you're no longer responsible for paying these debts, giving you a clean slate financially.
Fast Process: A Chapter 7 case in Wilkes-Barre typically takes only a few months to complete. You'll experience a quicker path to financial freedom compared to other types of bankruptcy, allowing you to move on with your life sooner.
No Repayment Plan: Unlike Chapter 13, Chapter 7 doesn't require a repayment plan. Once your case is discharged, your eligible debts are wiped out, providing immediate relief from your financial burdens.
Eligibility: To qualify for Chapter 7 bankruptcy, you must pass the means test. This test compares your household income to the median income in Pennsylvania. If your income is above the state median, you may need to consider Chapter 13 bankruptcy instead. Our experienced Wilkes-Barre bankruptcy attorneys can help guide you through this process to determine your eligibility.
Benefits of Chapter 13 Bankruptcy in Wilkes-Barre, PA
Debt Repayment Plan: Chapter 13 helps reorganize your debts into a single, manageable monthly payment based on your income. This plan typically lasts 3 to 5 years and allows you to pay off your debts over time.
Keep Your Property:
One of the main advantages of Chapter 13 is that you can keep your home, car, and other assets while repaying your debts. If you’re behind on your mortgage or car payments, Chapter 13 can provide the opportunity to catch up and avoid foreclosure or repossession.
Protection from Creditors:
Filing for Chapter 13 immediately activates the automatic stay, which prevents creditors from taking further collection actions, including wage garnishments, foreclosure, or lawsuits.
Relief from Tax Debt: Chapter 13 can also help with tax debts, allowing you to pay back overdue taxes over time, rather than facing immediate collections or penalties.
If you’re in the Wilkes-Barre area and struggling with debt, speaking to a bankruptcy attorney can help you understand which option is best for your situation—whether that’s Chapter 7 or Chapter 13. Reach out today to discuss your financial future and find the solution that works for you.
