No one goes into debt expecting to experience a financial setback that leaves them unable to pay off that debt. Unfortunately, loss of jobs, medical emergencies, divorce and death can happen unexpectedly and leave you unable to pay your bills. When you find yourself in a financial crisis that you cannot get yourself out of, you need to speak to a Bankruptcy Attorney in Harrisburg PA. A bankruptcy attorney like those at Parker Law Firm P.C. will be able to help you understand the bankruptcy laws. They can also help you decide if bankruptcy is right for you.
There are some debts that you will not be able to add to your bankruptcy case. Those include most student loans, federal taxes, spousal support and child support. Most other debts can be discharged through bankruptcy proceedings. You will need to bring a list of all of your bills with you to your appointment with your Bankruptcy Attorney in Harrisburg PA. Your attorney will notify your creditors of your impending bankruptcy filing. Once you file for bankruptcy protection, your creditors will not be allowed to contact you any further.
If you file for Chapter 7 bankruptcy, you will have to liquidate all of your non-exempt personal and real property. The proceeds of the sale will be used to pay off your debt. You will be allowed to retain ownership of your exempt property, including clothing, wedding rings, personal household belongings and in some instance you will also be allowed to keep an older car.
With Chapter 13 bankruptcy you will not have to liquidate your assets. In fact, you will keep all of your property. You will enter into a repayment agreement with all of your creditors and you will make designated payments for about three to five years. Once you have made the necessary payments, any remaining debt will be forgiven.
Your bankruptcy will remain on your credit report for about 10 years. However, your debt will be forgiven and when the 10 years are over you will have the fresh start that you are in need of. Many creditors will allow you to begin reestablishing your credit within about two to three years after your bankruptcy is discharged. Visit us for more information.