Choosing a Chapter 13 Lawyer in Mechanicsburg

by | Nov 22, 2013 | Law

The decision to file for bankruptcy is a tough situation for anyone. Bankruptcy could have a huge impact on your life several years after filing. One of the major decisions you have to make is which chapter of bankruptcy to use in your situation. There are three types of bankruptcy. Chapter 7 bankruptcy is the most common type of bankruptcy and gives you a fresh start by completely discharging all of your debt. Chapter 11 bankruptcy is primarily used by businesses. It is the most complex and time consuming of the types of bankruptcy. Chapter 13 bankruptcy allows you to repay a specified amount while retaining non-exempt assets. From March 2012 to March 2013, almost 9,200 Chapter 13 bankruptcies were filed in the state of Pennsylvania. If you elect to use Chapter 13, you have a few options when choosing a chapter 13 lawyer in Mechanicsburg.

Chapter 13 bankruptcy is a proceeding for people with standard salaries who have unsecured debts of $307,675 and approximately $922,975 in secured debts. Several people use a Chapter 13 to pay bills that are overdue. Loan payments or certain types of tax debt are a few examples of bills that call for the use of Chapter 13 bankruptcy. In a reorganization case, you will have three to five years to repay your debt. Repayment in Chapter 13 can range from 10% to 100% depending on what type of debt you have and your income. Filing Chapter 13 bankruptcy protects your home from foreclosure and your car from being repossessed. A Chapter 13 discharge only applies to debts provided for by the plan. Debts not included in the plan still have to be paid, even after discharge. There are several exemptions in a Chapter 13 discharge. A chapter 13 lawyer in Mechanicsburg can explain which debts go away as a result of a Chapter 13 discharge and which you are obligated to pay. If you file for Chapter 13 and agree to a wage-earner plan, you commit the next three years of disposable income to the repayment of your debts. Your income will probably increase after this plan is in place.


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