Leading Bankruptcy Lawyers in Indiana County Get You Back on the Right Track
Are you overwhelmed with medical bills, or credit card debt where you are struggling to make even the minimum monthly payments? Are you facing a foreclosure of your home? Bankruptcy might be the right way for you to get a fresh start in your financial life. You need the advice of a good bankruptcy lawyer to figure out if bankruptcy or a non-bankruptcy alternative is best for your situation. We have handled more bankruptcy cases for individuals than any other law firm in Indiana County. For over forty years Attorney Vaporis has handed bankruptcy cases in Pennsylvania, Ohio and Michigan. Contact us to schedule your appointment.
Chapter 7 wipes out all but a few debts.
A Chapter 7 bankruptcy, sometimes called “straight bankruptcy, is the most common bankruptcy filed. It allows you to eliminate nearly all of your debts; the exceptions are student loans, alimony-child support, and most (but not all) taxes. In a Chapter 7 the law allows you to retain your property up to certain limits (called exemptions). Ninety-five percent of the cases filed are cases in which no property is lost or turned over to the bankruptcy trustee. If you have property worth more than the exemptions allow you to keep a Chapter 13 might be the better option. Finally, if your household income is too high (as defined by Congress), you could be ineligible for a Chapter 7 and have to file a Chapter 13.
Chapter 13 Reorganization.
In a Chapter 13 bankruptcy, with the help of your attorneys you will file a Chapter 13 Plan in which, over three to five years, you pay some or all of your unsecured debts in regular monthly payments, but you usually keep all of your property. Chapter 13 is a good option when you have property you want to keep, but will lose in a Chapter 7, or if your income is too high to allow you to file a Chapter 7. It also allows you three to five years to get caught up on a delinquent mortgage or taxes, and may prevent the foreclosure of your home.
Taxes and Bankruptcy.
Taxes that may be wiped out in a bankruptcy are income taxes more than three years old (if you filed all your returns on time), real estate taxes, per capita taxes and other “local” taxes in Pennsylvania. Taxes that survive bankruptcy, and which you have to continue to pay, are basically trust taxes (sales tax, employee tax withholdings), and taxes less than three years old. Be sure to ask us any questions you might have with your taxes and a possible bankruptcy case.
Which option is best for you?
In order to determine if a Chapter 7, Chapter 13, or non-bankruptcy option, is best for you contact us to schedule a free consultation. Call (724-465-5653) or contact us on-line. We also have a financial worksheet that you can fill out and bring in with you.