Chapter 13 Bankruptcy Lawyer in Pennsylvania

  • Home
  • Chapter 13 Bankruptcy Lawyer in Pennsylvania

Chapter 13 Bankruptcy Lawyer in Pennsylvania

What is a Chapter 13 bankruptcy? Who may be eligible? What are the requirements? How can an attorney help you? How much will it cost? This guide on Chapter 13 bankruptcy in Pennsylvania can help you answer those questions.

Chapter 13 in Pennsylvania is the most common type of bankruptcy filed in this state. Chapter 13 introduces many changes to a pre-existing repayment plan that allows debtors to re-organize their debts with reduced interest rates or reduced balances, or both.

Before we get into the nitty-gritty of Chapter 13 in Pennsylvania, it is important to note that this type of bankruptcy will come with implications such as how it affects your credit. The ramifications you could face depend on many factors, including:

  • Your age
  • The amount you owe
  • Whether you choose to retain a lawyer

Chapter 13 Bankruptcy Lawyer

Chapter 13 of the Bankruptcy Act is a repayment plan that allows debtors to repay some or all of their debts according to a payment plan tailored to their capability. In Pennsylvania, a debtor needs to file a repayment plan with the court if they owe secured debts that exceed $922,200 or unsecured debts that are greater than $394,725.

Chapter 13 is an important process for all parties involved. For the debtor, it will result in a lowered interest rate on debts. It may also lead to reduced balances or even complete dismissal of certain debts. For creditors this process is equally significant; they can expect their debtors to make agreed-upon monthly payments that are not too high and which would enable them to repay their debts in a timely manner.

To qualify for Chapter 13 in PA, you must:

  • Be a natural person who resides in the United States
  • Have regular income
  • Partake in some form of gainful employment or self-employment
  • Not be a debtor who has attempted to file another bankruptcy within the 180 days prior to filing this one.

The rules for Chapter 13 bankruptcy in Pennsylvania are similar to a bankruptcy under Chapter 7 or Chapter 11. For example, they require that:

  • You owe a certain amount of debt
  • The debts are primarily consumer-based
  • Your income is at or above the median average

How Can a Chapter 13 Bankruptcy Attorney Help You?

In a Chapter 13 bankruptcy, a lawyer can help you tailor a repayment plan that best suits your situation. They can fight for your rights and keep your interests at top of mind. The most common types of repayment plans under Chapter 13 are five-year payment plans and three-year payment plans:

  • Five-year payment plan: This is the most common plan, and it allows debtors to repay all of their debts over a period that is no longer than five years without having them canceled or dismissed. However, if they are under Chapter 13 bankruptcy for at least two years and successfully complete 70% of the proposed payment plan, creditors may not initiate collection proceedings against them.
  • Three-year payment plan: This type of repayment plan allows debtors to repay all of their debts within three years without having them canceled or dismissed. However, if they are under Chapter 13 bankruptcy for at least one year and successfully complete 70% of the proposed payment plan, creditors cannot start collection proceedings against them.

While there may be certain benefits to filing for Chapter 13 bankruptcy under PA law, it can also have its disadvantages. This is why it can be so important to speak to a knowledgeable attorney. You can find a qualified bankruptcy law firm by searching online for “Chapter 13 attorney near me.”

(866) 691-5299