Zachary Zawarski, Esquire, is a Bethlehem bankruptcy attorney. We can help you obtain a discharge of your debts by filing a Chapter 7 or Chapter 13 Petition. The purpose of the Bankruptcy Code is provide debtors with a fresh start. We’ll be able to advise which bankruptcy option is best for your during our initial consultation.
A Chapter 7 petition will discharge almost all consumer debts. A Chapter 7 petition will require certain assets to be liquidated by the bankruptcy trustee in order to repay creditors. However, most debtor’s property is exempt under exemptions laws of the bankruptcy code. Under a Chapter 13 petition, the debtor will receive a discharge of their debts after following a payment plan which allows the debtor to restructure their debts repay them over a period of five (5) years.
Since a Chapter 7 bankruptcy achieves a complete discharge of debts without having to repay the debts, it’s often the preferred bankruptcy petition. However, not everyone can file a Chapter 7 petition. A Chapter 7 petition is only available to certain debtors who meet the “means test.” During our initial consultation, we’ll be able to determine if you would meet the means test to allow you to file a Chapter 7 petition.
A Chapter 13 bankruptcy petition, on the other hand, establishes a payment plan the borrower must fulfill in order to discharge their debts. A Chapter 13 bankruptcy petition is the preferred option for borrowers who are behind on their mortgage, but wish to keep their home. A Chapter 13 bankruptcy petition allows a borrower to pay the amount in arrears over a period of 3-5 years while they continue making their regular monthly mortgage payment.
In many cases, bankruptcy could be used to prevent the sale of your home at a sheriff’s sale. Bankruptcy provides the debtor with an automatic stay, which halts all collection efforts including foreclosure sales. Upon notification of a bankruptcy filing, mortgage creditors are required to remove a scheduled foreclosure sale until they receive the bankruptcy court’s permission to proceed with the foreclosure action.
If you are interested in speaking to a bankruptcy attorney about your options, please call (610) 417-6345. Our office is conveniently located in Bethlehem, Pennsylvania.