The core idea behind bankruptcy is one of eliminating or reducing debts. In order to do just this, consumers file under one of two chapters of bankruptcy, Chapter 7 or 13. For those who qualify for an Allentown, PA Chapter 7 Bankruptcy, they can get in and out of the court in a few months and are free to start over again sooner than later. Even though Chapter 7 is less complicated than a Chapter 13, it still requires diligence, honesty and preparation in order to receive a discharge that eliminates debt.
Before beginning the journey that is bankruptcy, it is important to determine if the debts are eligible for discharge. Student loan debt is not eligible, and will survive bankruptcy. However, some income taxes are eligible along with credit card debts, a defaulted or to-be-in default mortgage and more can be cleared in a Chapter 7 bankruptcy. These debts and more are fully eliminated in bankruptcy, or can be renegotiated with the creditor if there is a willingness on behalf of both parties. Filing also stops collection activities, even repossession of property, as the court gets first right to all assets and income. This can be a relief for many who are tired of being hounded by creditors.
Filing for an Allentown, PA Chapter 7 Bankruptcy is a big step, but can be well worth the taking. It begins the moment the petition is accepted by the court, and ends about four months later. During that time, the court investigates the petition, looks into all listed accounts to see what money goes where, and essentially makes sure the truth is being told. If it is satisfied, and no creditors object to the bankruptcy, a discharge is granted on the day after the designated final day for objections. No longer can creditors try to get money as they are permanently barred from doing so.
