Legal Question in Credit and Debt Law in Pennsylvania

You should contact a bankruptcy attorney to evaluate whether a bankruptcy is an appropriate option for you. A bankruptcy filing would operate to stop the litigation while you are in bankruptcy and may be able to discharge the claim. in any event your situation must be evaluated before any opinion can be given. i urge to consult with an attorney.

Bankruptcy acts as a shield or umbrella. From the day the bankruptcy petition is filed, it stops any litigation in its tracks and the lawsuit will be terminated.

You indicate how much debt you have but not what kind of assets or income you have. That makes a difference. You can file bankruptcy, but you may not need to do so. And depending on if you can file a chapter or chapter 13, that may dictate what you want to do.

The difference is this - chapter 7s are for people who have less assets than is permitted under the bankruptcy exemptions. They file their petition and schedules, have a meeting with their creditors and if all is in order they quickly get a discharge. If they have more assets than allowed by the exemptions, or they have a home which is behind on the mortgage and they need help to get caught up AND they have a steady income stream so as to be able t oa afford the payments under their plan, then they file a chapter 13. The chapter 13 is like the seven except under the 13, the debtor and his counsel comes up with a plan to repay a portion of the debt over a 3-5 year period. A discharge is granted when the plan is completed.

A lot of people enter into a chapter 13 with good intentions and cannot afford the payments so the bankruptcy ends up being dismissed which puts the debtor right back at square one. Other debtors have too many assets which they would lose so they do not want to file at all. In such case, there are other alternatives.

What is right for you depends and you will only know if and when you get a consult with a bankruptcy attorney. Many attorneys give free consults - take advantage of that. You can find a bankruptcy attorney here at Law Guru.

If you are interested in resolving your debts in a non-litigation non-bankruptcy context for a reasonable fee, I may be able to assist you Please email me at [email protected] if you are interested.

I have an office in Upper Darby and if you contact us we can assist in this matter.

Upper Darby is 610 734 0750