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Mortgage modification in a Chapter 7 bankruptcy

When the 2008 economic recession hit, mortgage companies were forced to find a solution for homeowners who could no longer afford their house payments and had fallen behind. Otherwise, the number of foreclosures would have been far more astronomical than it already was. Mortgagers would have lost millions of dollars.

Do I have to give up everything I own if I file Chapter 7?

The simple answer to this question is no. In Chapter 7 bankruptcy, secured debts can be "reaffirmed", meaning a debtor will be allowed to continue paying on those accounts after bankruptcy. However, there are some requirements that must be met for a bankruptcy judge to allow the retention of certain assets. Let us explain.

The purpose and process of Chapter 7 bankruptcy

The main purpose of a Chapter 7 bankruptcy is to allow an individual debtor a "fresh start." This means that most debts will be discharged upon completion of the bankruptcy, with no remaining liability to the debtor. However, there are exceptions to this rule. Most taxes and student loan debts are non-dischargeable in any bankruptcy. There are a few instances in which these could be discharged, but it does not happen often, and requires special consideration before a bankruptcy judge. In addition, criminal fines and child support are also both non-dischargeable debts, without exception.

What is the 'means test' in a PA Chapter 7 bankruptcy?

As many Pennsylvania residents may be aware, bankruptcy is a federal legal structure. It is based on the federal Bankruptcy Code, and adheres to the rules set out thereby. However, there are variations in bankruptcies from state to state as the types of property that can be exempted in a Chapter 7 filing is usually dependent on state law, as well as what level a filer has to show to meet the "means test" for eligibility for Chapter 7.

Is Chapter 7 Bankruptcy the right way to go?

Many Americans are suffering from financial woes. Whether it was serious health woes or just un-restrained spending on credit cards or anything in between, if you are feeling the burden of overwhelming debt, you may feel helpless, as if there is no way out. Thankfully, there are things that you can do to help relieve yourself of debt, including filing for bankruptcy.

Is an automobile exempt from repossession in Chapter 7?

Pennsylvania residents who are considering filing Chapter 7 bankruptcy may be worried that they will not be able to keep their car or truck once they file. There are steps a debtor can take to protect a vehicle in bankruptcy. Which strategy to choose will depend on the value of the vehicle and whether the debtor has a loan on it.

What information and fees are required with Chapter 7?

For people in Lehighton who are experiencing financial challenges and see no light at the end of the tunnel, Chapter 7 bankruptcy can be a lifeline. However, it is imperative to have a full understanding of how the process works with information and fees that the debtor should know. When filing for Chapter 7, the debtor will file the petition with the court. Along with that, the debtor must provide a schedule of assets and liabilities; a schedule of the income and expenditures; a statement detailing the financial affairs; and a schedule of executory contracts and unexpired leases. The trustee in the case must receive a copy of the most recent tax returns.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Filing for bankruptcy is a big step to take in one’s financial life, and it is important to make sure one understands the alternatives, the implications, and the options before filing. For those who are unable to receive the degree of debt relief they need outside of bankruptcy and who are prepared for the impact of bankruptcy on their credit health, the next big question is: which form of bankruptcy is right for me?

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Lehighton, PA 18235

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Allentown, PA 18101

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