Bankruptcy In Harrisburg, PA
The term “bankruptcy” is incredibly loaded, incredibly stigmatized—and, more often than not, incredibly misunderstood.
Many people are told to avoid bankruptcy at all costs, and that filing will mean the end of their credit and financial solvency forever. It is commonly believed that filing for bankruptcy is a shameful act through which the filer will lose everything—now, and in the future.
The good news is that those misunderstandings about bankruptcy couldn’t be farther from the truth. Yes, bankruptcy might not be ideal in all cases, but the fact of the matter remains that it is nothing like the life-ruining failure or catastrophe that it is often made out to be.
On the contrary, bankruptcy is a tool of financial relief that was designed to be used by people who need it. In Harrisburg, PA, and in the rest of the country, bankruptcy is utilized by many Americans who find themselves in need of that tool—for one reason or another.
Anyone who has lived through the past few years in America knows that most Americans are living paycheck to paycheck—which is as true in Harrisburg, PA as it is in the rest of the country.
Even if that doesn’t describe your particular financial situation, it is easier than ever to get hit with an unforeseen expense or series of expenses, or to suddenly be out of a job and without your usual forms of income. Costs of living continue to rise, with or without a new form of income, and despite emergency expenses like medical bills and car repairs. With fees and interest and other traps awaiting the average American trying to finance their own life, debts can snowball to truly unmanageable sums before a debtor even has the time to realize what’s happening.
It is easier than you might think to suddenly find yourself in over your head with debt. Bankruptcy is a financial tool for people who have found themselves in just that situation, and who need a financial fresh start.
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What Types Of Bankruptcy Are There?
There are several types of bankruptcy available for filing Harrisburg, PA debtors, including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
- Chapter 7 Bankruptcy: This is the most common type of bankruptcy. It is means-tested (i.e., your income must meet the median income in PA or lower to qualify). Chapter 7 filers have all of their unsecured debts (debts that aren’t secured with collateral) discharged. This means that you will no longer be responsible for paying those debts. Chapter 7 is also called “liquidation bankruptcy”, because it works by liquidating the person’s assets to pay back their creditors. However, there are many exempted assets—and often, those filers who have assets under a certain value cap can walk away with all of their assets exempted.
- Chapter 11 Bankruptcy: Chapter 11 can be filed by anyone but it’s more expensive and complex than other forms of bankruptcy, so it’s often used by businesses. Chapter 11 filers present a reorganization plan to make themselves more financially solvent and pay their debts while staying in business. Companies like GM and Chrysler have gone through Chapter 11 bankruptcy.
- Chapter 13 Bankruptcy: Chapter 13 is usually utilized by smaller businesses, self-employed people, and individuals who bring in too much income for Chapter 7. Chapter 13 filers consolidate their debts and set up a payment plan to pay off what remains from over the course of around 3-5 years.
- Chapter 12 Bankruptcy: Chapter 12 bankruptcy is much more niche. It’s designed specifically for family farmers or fisherman with regular annual income, allowing them to propose a repayment plan for some or all of their debt, usually over the course of 3-5 years.
If you are considering filing for bankruptcy in Harrisburg PA, you are not alone—but you may need some assistance. That’s where Harrisburg bankruptcy firm the Nager Law Group is ready to help.
We Are Here To Help. Call Today For A No Cost Evaluation | (443) 492-9003
How Can The Nager Law Group Help Me With My Bankruptcy Case?
The Nager Law Group, featuring Owner and Senior Attorney Alon Nager and Attorney Carolyn Gilden Krohn, is uniquely qualified to help clients navigate bankruptcy and find real solutions to their debt issues.
Attorney Nager, an alum of the University of Pittsburgh School of Law, has nearly 20 years of experience under his belt, which he puts to work for clients every day. He founded the Nager Law Group in 2014 and focuses primarily on bankruptcy, insolvency, debt settlement, and foreclosure. Attorney Gilden Krohn, a graduate of the Baltimore School of Law, brings her background in public defense to the table for clients, understanding the personal touch of empathy and understanding that goes into every Chapter 7 and Chapter 13 bankruptcy.
Are you or a loved one struggling with unmanageable debt, and considering bankruptcy? The Harrisburg, PA bankruptcy attorneys at the Nager Law Group are here to help. Reach out today for a free consultation on your case.