The past days of easy credit led far too many to travel down the seductive path leading to more debt than can be repaid. Many debtors were doing fine and meeting all of their payments until the unexpected happened. The downturns in the economy and huge number of lost jobs left far too many struggling to make even minimum payments. Stress-related illness added to the distress of many. Some were fortunate and found new jobs, but many of these jobs paid far less than the job that was lost. Families can fracture in these situations. Constant calls from creditors and bill collectors push people beyond what they can handle. Now they are struggling just to keep the lights turned on and can’t remember the last time they went out to dinner.
Most of these people could never have imagined that the day would come when they would be contemplating bankruptcy. Many are embarrassed and feel ashamed to even be thinking about it. They need to know that chapter 7 and chapter 13 bankruptcy laws were established to help people recover their lives. There are substantial differences between the two. Which one would be the better choice for someone depends on their financial goals.
Eligibility requirements take into consideration someone’s disposable income, what assets they have and the amounts and types of debts. For example, Chapter 7 bankruptcy does not have a provision allowing for the repayment of missed mortgage payments, while Chapter 13 allows people to keep their homes and to catch up on payments. Chapter 7 bankruptcies are usually discharged in a few months, while it normally takes up to five years to discharge Chapter 13 bankruptcies.
mitchell a. Sommers esq, p.c. has counseled and assisted many people for whom bankruptcy has become the best solution. He believes in being straightforward and honest with his clients, making sure that they understand what will happen depending on what they decide to do. After a course of action has been determined, he and his team represent their interests aggressively to ensure the best outcome for them. His firm also handles business Debt Relief in Reading, PA as well as family and criminal law, real estate cases and estate planning.
