Understanding Chapter 7 Bankruptcy

Have you lost your job, incurred a large medical expense or recently gone through a difficult divorce? These are just a few of the common reasons why people find themselves in serious financial trouble. If you are struggling, do not do it alone. The first step to getting back on your feet is talking with others, particularly talking to an experienced lawyer who can explain your debt relief options.

I’m bankruptcy attorney John R.K. Solt, and I have 40 years of experience helping people get fresh financial starts. I view bankruptcy as a tool that can be used to help people rebuild their lives. If you are in Bethlehem or elsewhere in the Lehigh Valley and need help, I am here for you.

When you contact my firm, John R.K. Solt, P.C., you can expect honest, straightforward answers to any of the questions you have about bankruptcy in Pennsylvania, such as:

  • Am I better off filing Chapter 7 or Chapter 13 bankruptcy?
  • What debts can be eliminated in bankruptcy?
  • Will I lose my house if I file bankruptcy?
  • Will my credit score ever recover?
  • Can I file bankruptcy if I am behind on my mortgage or my house is in foreclosure?

Chapter 7 Bankruptcy Basics

Chapter 7 is often referred to as straight bankruptcy or liquidation. This terminology stems from the fact that a good deal of the debtor’s property may be sold (liquidated) to satisfy debts.

Eligibility to file Chapter 7 is determined using the bankruptcy means test. Essentially, this legally required test is a comparison of your income with the state average and an analysis of your disposable income. If you “pass” the means test, then you can move forward to file Chapter 7.

During the bankruptcy process, some of your assets may be sold and the money would be used to pay creditors. However, it is a myth that bankruptcy filers lose everything. Pennsylvania and federal laws contain exemptions that allow debtors to keep certain types of property. Such exempt property usually includes your home, a vehicle, most retirement assets and a specific amount of personal property. Most Chapter 7 filers keep all of their assets.

Are There Alternatives?

If hired as your attorney, I will not push you to do something that is not in your best interests. When you visit my office, I will sit down with you to learn about your situation and then advise you accordingly. Chapter 7 bankruptcy is for those with heavy debt burdens and no hope of repaying the debts. If you have short-term financial problems, debt settlement may be a better choice. Or, if you have too much income to qualify for Chapter 7, then Chapter 13 may be the right option. In any case, we will choose the resolution that will be most advantageous for you.

Learn About The Bankruptcy Means Test

If you are considering your debt relief options, which may include Chapter 7 bankruptcy, I can answer your questions and help you determine the best way to improve your situation. To schedule an appointment, call 610-601-5381 or contact me online.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.