Chapter 7 Bankruptcy

Bankruptcy is a legal process that officially declares a debtor unable to pay back their creditors. There are six different forms of bankruptcy called chapters that can be adapted to the needs of different filers. An individual or a business can file for bankruptcy. The most common form of bankruptcy is a Chapter 7 filing.

A Chapter 7 filing is a basic liquidation of a person or business’ assets. A trustee will be appointed by the court to review the petitioner’s finances and decide how creditors will be paid back. This may mean that a trustee decides to sell a petitioner’s home or a business’ machinery and office building in order to pay back creditors. Any excess of funds from the sale of the assets left over from the payment of creditors will be returned to the petitioner.

Our Pittsburgh Bankruptcy Lawyer Can Assist You

Under Pennsylvania state law, the following debts are not included in bankruptcy:

Alimony
Child support
Most recent back taxes
Most student loans
Recent large purchases of more than $550 for luxury goods bought within 90 days of filing (E.g. a car)
Fines or penalties from government agencies
Fraudulent debts
Cash advances of $825 within 70 days of filing

There are however certain items that a filer may withhold from being seized, such as clothing, a certain portion of home equity, retirement funds, disability payments, etc.

Because Chapter 7 filings involve a seizure of assets, it is very important for petitioners to strongly consider appointing a Pittsburgh Bankruptcy Attorney to protect the assets that can be saved and insure that they will be treated fairly by the courts. Our legal team is experienced and knowledgeable about more than the bankruptcy code, but how to repair your credit and get your finances back in order. Contact us today for a free initial consultation with the Pittsburgh Bankruptcy Attorney.