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If you are facing bankruptcy, you may feel overwhelmed and completely confused. Bankruptcy is a major decision, and it is not one that you should make alone.
While bankruptcy often carries the stigma that it is your fault, that is most often not the case. For most folks, the number one cause for filing bankruptcy is medical debt, which can take an otherwise completely healthy person by surprise.
If you are in the process of filing Chapter 7 bankruptcy, do not hesitate to contact our Lebanon, PA bankruptcy attorney today.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy can offer you a fresh start, allowing an individual to liquidate assets to pay off creditors. Under Chapter 7, you can choose to take personal property exemptions under state or federal laws.
If an individual or couple decides to take the state exemption, under 42 Pa. C.S. §8123, individuals are entitled to a $300 exemption, with a married couple receiving a $600 exemption. In many cases, it may be possible for a person to keep his or her vehicle, home, and other personal property.
Federal exemptions include:
- $27,900 of equity in your primary residence; $55,800 for property co-owned by spouses
- $4,450 of equity in your motor vehicle
- $700 per household item, with a total of $14,875
- $2,800 in items that you need for your job (tools of trade exemption)
- An additional $1,475 in personal property, with a $13,950 unused homestead exemption
- Public benefits, including social security, public assistance, unemployment compensation, veterans’ benefits, and pensions
What Debts Are Not Covered Under Chapter 7?
Chapter 7 can help you have a clean “slate” regarding most types of debt. However, there are certain debts that are excluded, such as:
- Money owed in child support or alimony
- Student loans (unless you can demonstrate undue hardship)
- Damages awarded to another party as a result of a DUI conviction
- Criminal fines, restitution, and other court fees
- Tax liens (judgment against your property to pay a tax obligation)
This list is not exhaustive, so you need to discuss your case with a knowledgeable Lebanon, PA bankruptcy attorney to decide if a Chapter 7 filing is the right option in your given situation.
Benefits of Hiring a Bankruptcy Attorney
When you hire a Lebanon, PA bankruptcy attorney, you are hiring someone who understands the process of filing bankruptcy. A bankruptcy attorney knows what forms need to be submitted to the court, including the bankruptcy petition, schedules, and other documents.
A bankruptcy attorney will not only help you in court but can communicate with your creditors on your behalf. As you are probably already aware, creditors are persistent. Thankfully, a Lebanon, PA bankruptcy attorney can speak with your creditors, helping to ease your stress.
A Lebanon, PA Bankruptcy Attorney Advocating for You
If you are considering bankruptcy or have already begun the process, you likely have a lot of questions. Do not attempt to navigate the court system by yourself. In retaining the services of Attorney Scot Feeman, you are putting your livelihood into trustworthy hands. To learn more or to schedule your consultation, contact the office by calling (717) 273-1763 or by filling out our online contact form.