There are several types of bankruptcy that allow people and organizations to seek legal relief from debts that they simply cannot pay down. Personal bankruptcy is different from business bankruptcy in what it accomplishes for those who file for it. Individuals who declare personal bankruptcy may file for chapter 7 or chapter 13 either to be forgiven of some or all their debts or to pay most of them off under a structured plan.

More information about chapters 7 and 13 bankruptcy can be found elsewhere on our site. Here, we want to educate you in some of the basic facts of declaring personal bankruptcy. We will explain who is eligible, what personal bankruptcy involves, how it works, and what your results could be.

Once you know what you need to declare personal bankruptcy in Wilkes-Barre, Scranton, Hazleton, or the wider Northeastern and Central Pennsylvania areas, you can contact the Law Office of David J. Harris to start your journey toward financial freedom.

Personal Bankruptcy: How It Works

The Law Office of David J. Harris specializes in personal and business bankruptcy, as well as in creditor representation. There are subtleties to each area of bankruptcy, so let us elaborate on some specifics of personal bankruptcy.

Who Can Declare Personal Bankruptcy?

To qualify for chapters 7 or 13 bankruptcy, you must first pass a means test. This determines whether you have enough income to pay off your debts on your own or if you would actually benefit from declaring bankruptcy.

The means test simply shows whether your household income is more or less than the median income for your family size in the state where you live. If your income is less, you can file for chapter 7 bankruptcy, in which case some or all of your debts would be forgiven (under certain conditions). If your income is more than the median, you can instead file for chapter 13 bankruptcy, which requires you to repay most of your debts on a schedule.

What Can Declaring Bankruptcy Do for You?

The ultimate results of filing for bankruptcy depend largely on the specifics of your situation. In general, the types of debt of which you may be relieved in bankruptcy include personal loans and utility, medical, and credit card bills.

Debts you will likely be responsible for paying include back taxes, student loans, and spousal and child support.

What about Harassment by Creditors?

Bankruptcy is a legal way out from under debts. In that context, bankruptcy law prevents creditors, or their representatives at collections agencies, from contacting you. The automatic stays issued by courts stop creditors from calling you, sending you letters, foreclosing on your home, repossessing your vehicle, and suing you for money owed.

Whether such an automatic stay can be lifted so collections activities can resume is determined by the person’s circumstances. It all depends on the situation.

Hire an Expert PA Bankruptcy Attorney in Wilkes-Barre

The Law Office of David J. Harris has been practicing in the area of personal bankruptcy for more than 35 years. If you have been buried under debts for a long time and finally want the relief you deserve, contact David J. Harris. Declaring personal bankruptcy may just be the way out for you, and David’s expertise will guide you through the entire process.

Whatever your situation, when you need a bankruptcy attorney in Wilkes-Barre, Hazleton, Stroudsburg, or the more general Northeastern and Central Pennsylvania regions, David J. Harris’s office will be there to help.