Chapter 7 Bankruptcy Lawyers in Lancaster PA

Chapter 7 may be the opportunity you are looking for if you are behind on your bills or have credit card debt, hospital bills, lawsuit judgments, or payday loans.

How it can help you:

Eliminate your unsecured credit card debt in full
Eliminate hospital bills or prior legal fees
Stop most civil lawsuits against you
Stop all creditors from calling you at home and work or sending you collection bills
Stop the foreclosure on your home and sheriff's sale and get at least 1-2 additional months to attempt to work out an arrangement with your bank/lender if keeping your home is your intention
Surrender your real estate back to the mortgage company and walk away from it without negative tax consequences
Stop gas, water, electric shut offs and have the services immediately turned back on
Unlock frozen bank accounts and all collection activity
Rebuild your credit score
Stop the repossession of your car
Reinstate your driver's license and eliminate traffic fines

Services

Chapter 7 Bankruptcy: Credit Card, Personal & Home Debt Relief

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Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a legal process that allows individuals to eliminate most of their unsecured debts, providing them with a fresh financial start. This type of bankruptcy is particularly beneficial for those who are overwhelmed by financial obligations and need a way to regain control of their finances.

Under Chapter 7, eligible debtors can discharge debts such as credit card bills, medical expenses, and personal loans. However, it's important to note that certain types of debts, like student loans and tax obligations, are typically not dischargeable. Understanding these nuances is crucial for individuals considering this option.

Eligibility for Chapter 7 Bankruptcy

To qualify for Chapter 7 bankruptcy, individuals must pass a means test that evaluates their income and expenses. This test ensures that only those who genuinely cannot repay their debts can file for this type of bankruptcy.

The means test compares your average monthly income over the last six months to the median income for a household of your size in Pennsylvania. If your income is below this threshold, you may qualify for Chapter 7. If it's above, you might need to consider Chapter 13 bankruptcy instead.

The Benefits of Filing for Chapter 7

Filing for Chapter 7 bankruptcy offers numerous benefits, including the immediate cessation of creditor harassment and the potential for a quick discharge of debts. This can provide individuals with much-needed relief from financial stress.

Additionally, Chapter 7 bankruptcy can help individuals rebuild their credit more quickly than other forms of bankruptcy. Once debts are discharged, individuals can start fresh and begin to re-establish their creditworthiness, often within a few years of filing.

Steps to File for Chapter 7 Bankruptcy

The process of filing for Chapter 7 bankruptcy involves several key steps, starting with gathering necessary financial documents and completing the bankruptcy forms. It's advisable to consult with a bankruptcy attorney to ensure that the filing is done correctly.

After filing, a meeting of creditors will be scheduled, where the debtor must answer questions about their financial situation. Following this meeting, if no objections arise, the court will issue a discharge order, eliminating qualifying debts and allowing the debtor to move forward financially.