Chapter 7 and Chapter 13 in Philadelphia

You tried all the recommended advice for getting your finances in order. There was the visit to the consumer credit counseling agency, you tried to talk to your creditors personally, and you even took a small loan hoping to offset the monthly expense of your bills. None of these excellent techniques worked well enough to give you the fresh start you needed so badly. Now you are wishing someone would share the brotherly love in Philadelphia Pennsylvania and get you out of this situation. Unfortunately there isn't a finance angel, but you can consider applying for bankruptcy. For personal bankruptcy cases Chapter 7 and Chapter 13 are the most commonly used forms of bankruptcy. Here is what you can expect from each one of them.

• the process of Chapter 7 bankruptcy
• the advantages of Chapter 13 bankruptcy
• life after bankruptcy

When you are facing bankruptcy in Philadelphia Pennsylvania, you just want it to be over, not spend your time learning bankruptcy laws. Hopefully this quick look at the two types of personal bankruptcy will make things a bit clearer. With a Chapter 7 bankruptcy plan, you can expect the court to order a liquidation of your assets for the purpose of paying back your past due debts. When people mention bankruptcy, this is the plan most of them are thinking about. While you will walk away from this type of bankruptcy not owing anyone anything, you can also lose everything you own in the process including your home.

A Chapter 13 bankruptcy plan under the Philadelphia Pennsylvania law is a more humane way to go for many people. This is considered to be reorganization of your debt. In many ways it is similar to a bill consolidation loan. After proving the amount of debt you have, your total income, and a detailed report on your monthly expenses, the court will order a set amount to paid each month towards the back bills. Once all the debt is covered, you are in the free and clear with your bankruptcy discharge papers. Chapter 13 bankruptcies also doesn't cause you to lose your home and may be instrumental in making sure you get to keep it.

Both Chapter 7 and Chapter 13 bankruptcy plans have advantages. Your particular situation will dictate which one is right for you. Life after a Philadelphia bankruptcy can be good as long as you cover your needs and make sure you are prepared to rebuild your credit.