Often times, chapter 7 bankruptcy can be called a fresh start for many people. The basics of this type of bankruptcy is that a person’s assets are liquidated in order to pay off as much of a person’s debt as possible In addition to that, all of a person’s unsecured debts are cancelled or released. Now while most of a person’s assets are liquidated, there are some things that are exempt from being liquidated and can be protected. A lawyer for Chapter 7 In Lancaster, PA can certainly help to advise an individual on all of this.
A few of the things that can be retained during a chapter 7 bankruptcy can include items like a car, home, personal belongings, and many other things. There may be a few other items that could be exempt from being liquidated from a chapter 7 bankruptcy. Most often this includes items that are either too difficult to liquidate or are not worth much to begin with anyway so it would not really be worth it to try and liquidate that item. Of course, some personal belongings like family heirlooms will certainly be considered exempt from being liquidated.
Who Can File for Chapter 7?
One thing to keep in mind when considering chapter 7 bankruptcy is that if a person has received a previous bankruptcy discharge then they may not be eligible for chapter 7 bankruptcy. For the most part, this is set to six to eight years. That means that if a person has declared bankruptcy in the last six to eight years they cannot file again. The laws do vary a little from state to state, and a lawyer for Chapter 7 In Lancaster, PA can certainly advise a person on the specifics of the law for the state of Pennsylvania.
Secured Debts in Chapter 7
As previously mentioned, unsecured debt is cancelled or released during chapter 7 bankruptcy. There will not be any additional money owed on these type debts. Now secured debts do work a little differently. These types of debts can include items like houses, cars, and boats. The debts owed on these types of properties are sometimes handled outside of the normal parameters of chapter 7 bankruptcy.
An example would be a mortgage company may ask that the automatic stay be lifted for this type debt and that the debtor continue to make their mortgage payments. For the most part, these companies will work with individuals to pay off the debt. It just might happen outside of the chapter 7 bankruptcy.
A chapter 7 is not for everyone. For those that qualify, it certainly can give a fresh start. The downside is this stays on the credit report for ten years.
Mitchell A. Sommers ESQ, P.C. is a lawyer for chapter 7 in Lancaster, PA that offers legal services in Lancaster, Ephrata, and the surrounding regions in Pennsylvania. The legal services offered include bankruptcy law for both businesses and individuals as well as family law, criminal law, real estate law, estate law and wills.