If you think that you are going to need to file bankruptcy, then you must get a lawyer. There are a few different types of bankruptcy options, mainly Chapter 7, 11 and 13. You need to have a lawyer so that you can file for the one that is best for your situation, and so that you can keep your possessions, such as your home and your vehicle.

Why Get a Lawyer?

You need the help of PA bankruptcy lawyers so that you can understand the nature of bankruptcy, the laws and what all is involved. There are many specialty bankruptcy lawyers who deal solely in this business, and who know the laws inside and out. They will know everything there is to know about filing for a debt relief. You may even be able to refinance and save yourself from a bankruptcy, which your lawyer will be able to let you know. You may want to choose this option, or try a debt consolidation loan, so that you can pay off all your bills without filing for bankruptcy. A bankruptcy lawyer will help you see all of your options, so that you can choose the best one. You may find that there are even better ways to find debt relief than by filing for bankruptcy.

Your lawyer may decide that bankruptcy is in your best interests, and he or she can then help you determine which one should be filed. It can be difficult to understand the type of bankruptcy that is available for those who wish to look into it. There are three main types of bankruptcy, known as Chapter 7, Chapter 11 and Chapter 13, although there are other, lesser known types. Each name comes from the part, or the chapter, of the federal finance law that details bankruptcy. Knowing which category you fall under is important before you begin the process.

Chapter 7 Bankruptcy

Chapter 7 is the chapter of bankruptcy that most people know about. This is often known as the “personal” bankruptcy, and is usually the one that individuals file. Some businesses do file under Chapter 7, as well. If this bankruptcy is accepted, then most of the individual’s debts are written off. Debtors are also not allowed to try to get money from those who have filed under Chapter 7 bankruptcy. With this bankruptcy, assets and property may be sold off to pay your debts, although there are exceptions for certain states. Chapter 7 bankruptcies will take about three to six months to be completed, though those who have a harder case load may find it takes much longer. This bankruptcy can be filed again, but only after eight years have passed after the first case.

It is important to remember that the Bankruptcy Abuse Prevention and Consumer Protection Act has made it harder for some people to qualify for this bankruptcy. That is why it is very advisable to get a lawyer to help you with your case. This act was finalized in 2005, and was enacted to help people from abusing the bankruptcy laws. Any of the PA bankruptcy lawyers will be able to give you advice on Chapter 7 bankruptcy laws.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is usually meant for businesses that are in the middle of reconstructing and are cutting back. This bankruptcy is very complicated, and involves a lot of intricate work of finances, as well as a partial forgiveness of debt. This type of bankruptcy should only be performed by a lawyer who is competent in these matters.

Chapter 13 Bankruptcy

Chapter 13 is a designated bankruptcy law that can stop foreclosures, repossessions, lawsuits and wage garnishments. This can provide a much needed relief for those who have short-term financial problems, such as a job loss or illness in the family. Chapter 13 bankruptcy allows a person to catch up on all their past due payments by spreading them out over a three to a five year time frame, while still keeping their payments that are due now up to date. They usually will receive what is known as the protection of the automatic stay, otherwise known as a court order that does not allow debtors to get in contact with them. A Chapter 13 bankruptcy lawyer may be the right avenue to pursue to make sure you get the best in legal protection for your specific case.

Where to Find Help

You can get help online by looking up PA bankruptcy lawyers around your area. You can easily find many lawyers who can help you with your case, and show you the proper steps to get you out of debt. People all over the world file for bankruptcy each year, and for a variety of reasons. One reason is the loss of a job, which can hurt a family severely when they have large mortgages and car payments due. Illness in the family can cause many people to go into debt trying to pay medical bills. Even divorce can cause a person to lose a lot of their assets, and consequently go under in their bills. Many times a business that was started will struggle and fail, all the while mounting up thousands of dollars in debt. This is when they may file for bankruptcy, and either reclaim their business, or close.

It is important to remember that filing for bankruptcy does not make every debt go away. One case in point is alimony. Payments for child support can also not be stopped by filing for bankruptcy. These are debts that must be made, no matter what financial situation you are in. Talk to a respected and reputable bankruptcy lawyer before you make this decision. Remember, a bankruptcy will stay on your record for 7 years, and will affect your future credit and financial decisions.