Experienced Bethlehem Chapter 13 Bankruptcy Lawyer
Under Pennsylvania bankruptcy law, Chapter 13 gives you a way to take financial control. This debt relief process requires careful navigation through bankruptcy court procedures and strategic planning that demands an experienced attorney’s guidance.
At John R.K. Solt, P.C., I have spent more than 50 years helping people across Bethlehem, Northampton and Lehigh counties get back on their feet. When you come to me for help, I will meet with you directly, listen to your concerns and explain your legal options in plain English.
What Are The Benefits Of Filing For Chapter 13 Bankruptcy?
Chapter 13 bankruptcy:
- Allows you to catch up on mortgage arrears and avoid foreclosure
- Let’s you keep your property while making manageable monthly payments
- Halts wage garnishments and debt collection lawsuits
- Consolidates your debts into one court-approved repayment plan
- Offers protection from creditors while giving you time to get back on your feet
These benefits are real and backed by federal law, but the process is not automatic. That is why working with a seasoned bankruptcy lawyer matters.
How Chapter 13 Affects Your Credit And Future
With Chapter 13, you stop the bleeding. The bankruptcy notation remains on your credit report for seven years, compared to 10 years for Chapter 7 bankruptcy. During your repayment plan, you demonstrate your ability to make consistent monthly payments, which can help rebuild your credit profile.
Your financial reorganization through Chapter 13 creates a structured path toward financial stability. Once you complete your repayment plan, any remaining qualifying debts receive discharge, giving you a true fresh start. You do not have to figure this out alone because I am here to walk with you through the Pennsylvania bankruptcy process and help you reclaim peace of mind.
Frequently Asked Questions About Bankruptcy In Pennsylvania
Bankruptcy should not frighten you. I always take the time to answer my clients’ questions, such as:
Who qualifies for Chapter 13 bankruptcy?
To qualify for Chapter 13, an individual’s income must be enough to pay for their basic living expenses plus some of their debts, and their debt must be beneath set limits. In addition, Chapter 13 is only available to individuals (including those who are self-employed). It is not available to businesses that are operated as LLCs or incorporated.
How does Chapter 13 bankruptcy differ from Chapter 7 bankruptcy?
The differences are largely related to who qualifies for which form of debt relief and how those debts are handled.
Chapter 7, often called “liquidation” bankruptcy, is intended to assist debtors who do not have enough income to qualify for any kind of repayment plan. They must pass a “means” test that compares their income to the state’s median income. A Chapter 7 discharge most unsecured debts entirely, without repayment, but requires certain nonexempt assets (if the debtor has any) to be sold to repay their creditors.
Chapter 13, which is a debt reorganization plan, is intended to assist debtors who have enough income to repay at least some of their debts and who do not qualify for Chapter 7. It requires the debtor to repay at least some debt over three to five years, but debtors can keep all of their assets, including property that is otherwise not exempt.
I can help you understand your options so that you know which path you should follow.
Can you keep your house and car if you file for Chapter 13 bankruptcy?
Yes. Chapter 13 bankruptcy allows filers to reorganize their debts without jeopardizing their assets, such as a house or other real estate. One of the benefits of Chapter 13 bankruptcy is that it can protect filers if they are facing foreclosure.
Once a person files for Chapter 13 bankruptcy, an “automatic stay” is put in place. This automatic stay prohibits mortgage lenders and creditors from continuing any collection efforts. The filer can even use a repayment plan to resolve missed mortgage payments.
Now Is The Time To Act
I offer free consultations at my Bethlehem office, and I personally handle each case. Call John R.K. Solt, P.C., via 610-601-5381 or send a message through the online contact form to get started on your Pennsylvania options for debt relief, debt management and real financial reorganization.
John R.K. Solt, P.C., is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.