WHAT IS BANKRUPTCY?
Bankruptcy is a generalized term for a federal court procedure that can help consumers and businesses in a number of ways - sometimes getting rid of the debt completely; other times modifying or reducing the debt or interest rate; or allowing more time to catch up on payments. Filing a bankruptcy petition may stop creditors from taking certain actions against you or your property. In general, bankruptcies can be categorized into two types -- "liquidations" and "reorganizations." The most common type of bankruptcy is sometimes called a "liquidation" bankruptcy or Chapter 7 bankruptcy, even though in many Chapter 7 cases, individuals are permitted to keep property if it is exempt. "Reorganization" bankruptcy is commonly either a Chapter 13 or Chapter 11.
WHO DO WE REPRESENT?
We represent individuals, farms, and businesses who need representation in bankruptcy court.
Most of our clients live, or own property in the Middle District of Pennsylvania.
The Middle District of Pennsylvania is a federal district which is comprised of the counties of Adams, Bradford, Cameron, Carbon, Centre, Clinton, Columbia, Cumberland, Dauphin, Franklin, Fulton, Huntingdon, Juniata, Lackawanna, Lebanon, Luzerne, Lycoming, Mifflin, Monroe, Montour, Northumberland, Perry, Pike, Potter, Schuylkill, Snyder, Sullivan, Susquehanna, Tioga, Union, Wayne, Wyoming and York.
CHAPTER 7 BANKRUPTCY
The vast majority of bankruptcies are filed under Chapter 7 of the Bankruptcy Code. Chapter 7 cases are filed by individuals and businesses. Chapter 7 is not a repayment plan, and although it is commonly referred to as "liquidation," the majority of chapter 7 filings are "no-asset" cases, meaning that the Chapter 7 Trustee does not sell or liquidate property.
Chapter 11 of the Bankruptcy Code generally provides for reorganization of a corporation or partnership, although individuals who exceed the Chapter 13 deb limits may qualify for Chapter 11. A chapter 11 debtor usually proposes a plan of reorganization to keep its business going and to pay creditors over time.
Chapter 12 Bankruptcy is for family farmers or fishermen and is similar to a Chapter 13 case but provides additional benefits for those who are eligible. It involves a reorganizational plan, where periodic payments are made to a trustee and paid out to certain creditors. This Chapter allows financially distressed family farmers or fishermen to propose a plan to repay certain debts, modify debts, or perhaps discharge debt.
CHAPTER 13 BANKRUPTCY
Chapter 13 Bankruptcy involves a reorganizational plan, where monthly payments are made to a trustee and paid out to certain creditors. Frequently, this Chapter is used by people who wish to save a house or car but need additional time to catch up on payments. In some situations, you may be able to reduce the interest rate or principal balance on a vehicle loan, stop interest and penalties from accruing on certain tax debts, or get rid of a second or third mortgage.