One of the overwhelming fears that Pennsylvania debtors carry with them about bankruptcy is the concern that they will have nothing left when the process is over. Despite the debts, individuals may worry about losing the rooves that are over their heads or the cars that they drive to their jobs. While Chapter 7 bankruptcy does involve the selling off of property in order to pay creditors, Chapter 13 bankruptcy offers a different type of solution to burdensome debts.
As previously discussed on this blog, Chapter 13 bankruptcy uses the reorganization of a debtor’s assets and income to create a repayment plan. It is through that plan that a debtor may begin the multi-year process of satisfying their debts to their creditors and achieving financial freedom. Debtors are often able to keep their homes, protect their cars and continue their lives so long as they are able to maintain their payments to their lenders.
It is important, however, that a person understand the significant sacrifices that they will have to make in order to succeed in Chapter 13 bankruptcy. They will see their disposable income allocated to their debts and find that their discretionary spending must be curbed. However, those that are able to stay with their repayment plans are rewarded with discharges once their obligations are fulfilled.
Rapa Law Offices are available for new bankruptcy clients looking for options to deal with their unmanageable debts. It is useful for a person to talk over the benefits and drawbacks of Chapter 7 bankruptcy and Chapter 13 bankruptcy with a legal professional who can advise them of which debt relief option may better serve their needs.