If you’ve been struggling with debt for months or even years, filing bankruptcy may be the answer. Depending on the circumstances, declaring Chapter 7 or Chapter 13 could provide the breathing room needed to regain your financial footing. Here, a bankruptcy attorney from Pennsylvania’s Zebley, Mehalov & White, P.C. explains the major differences between Chapter 7 and Chapter 13 so you can decide which approach to pursue. 

Chapter 7

Chapter 7 is for individuals whose income is below the Pennsylvania median for their household size and have little income left over after paying their living expenses. A Chapter 7 lasts about 3 to 4 months.  It gives most clients a fresh start while keeping their home, vehicles, furniture, pension and most other assets, and discharging most unsecured debts. Non-dischargeable debts include student loans, income taxes, domestic support obligations and criminal fines.  Clients must continue to pay secured debts such as their mortgage and vehicle loans if they wish to retain these assets.   

Chapter 13

Chapter 13 is a reorganization bankruptcy designed for those who:  (1) have income above the Pennsylvania median and can afford to pay back some or most of their debt, (2) have assets which exceed what they can keep in a Chapter 7, or (3) are facing a Sheriff sale, repossession or garnishment because they are behind on their mortgage, income taxes and/or vehicle loans and just need time to catch up. If you do not qualify for Chapter 7, then a Chapter 13 may provide needed relief. We will design a repayment plan that requires a single monthly payment covering all applicable debts. Then, after three to five years, any qualifying debt that remains is discharged. The greatest advantage of Chapter 13 over Chapter 7 is that it often allows clients to keep all their assets. 

If you’re thinking about filing bankruptcy, turn to Zebley, Mehalov & White for expert guidance every step of the way. Located in Uniontown and on Route 40 in Centerville, we are proud to represent clients throughout Southwestern Pennsylvania in a variety of practice areas. Whether you need help filing bankruptcy, finalizing a real estate transaction, drafting a will, or fighting criminal charges, you can rely on us for personalized and attentive legal counsel at every stage of the proceedings. To request an initial consultation, visit their website or call (724) 439-9200 today.