Bankruptcy is a debt relief solution that is used to either eliminate certain debts or provide a way to pay off debt within a short period of time. Businesses and individuals can use bankruptcy to help with debt. Bankruptcy comes in different forms and are used for specific purposes depending on the need. A Chapter 7 bankruptcy is a liquidation bankruptcy mostly used for individual debt relief. The following will cover information regarding chapter 7 in Lancaster PA you need to know.
Affects Your Credit
While Chapter 7 will not repair your credit, it does allow you to start over with less to no debt on your shoulders. You can rebuild your credit over a period of time between seven and ten years after your debts are discharged. Your credit will be adversely affected by bankruptcy. It can prevent you from obtaining conventional loans and credit cards though you may be able to obtain credit within six month after the debt is discharged at higher interest rates and extraneous fees.
Ends Collection Calls
Debtors want their money and have no qualms about calling you as much as possible to try to force you to pay. Even with strict laws about when and how often debtors and collection companies can call you, they still tend to push those legal limits sometimes. Phone calls and correspondence can become quite annoying and frustrating especially when you have no money to pay them. Chapter 7 bankruptcy stops those phone calls and correspondence even before your debt is discharged.
Discharges Debts
While Chapter 7 will not discharge all your debt, it does discharge secured debts. Unsecured debts, large credit card amounts, student loans, alimony, child support, taxes, and certain other forms of debt cannot be discharged. You still have to pay child support, alimony, taxes, and student loans regardless of bankruptcy. Unsecured loans and credit cards may require that you sell off some assets in order to pay at least some of the debt as a settlement. You can also keep your furniture, clothing, vehicles, and home as long as you continue to make payments on any mortgages or loans.
These are the basics of chapter 7 in Lancaster PA. A good lawyer can help you with the proper forms and documents as well as attend your hearing/meeting. Mitchell A. Sommers ESQ, P.C. offers free initial consultations so there is no risk in finding out how they can help.
