MEMBERS

You're Deep In Debt and Don't Know Your Options?

You’re getting calls from collection agencies. Credit card companies are calling. The bank is ready to foreclose on your property. It took years to accumulate the debt you’re in, and you can’t even remember what you spent the money on.

But one thing’s clear. You stand to lose everything. You’ve thought about filing for bankruptcy, but you don’t know where to begin.

Bankruptcy is a legal proceeding that allows a person with more debts than he or she can pay to seek relief from those debts.

Many people believe that a person who files bankruptcy will either lose everything, or will never again be able to have credit in their name. Neither is true.

Several types of bankruptcy actions exist under Federal law. Two of the more common types of bankruptcy are Chapter 7 and Chapter 13. Chapter 7, or liquidation proceeding, includes a court-administered sale of property, if applicable. It should be noted that most people do not have excess property above the legal exemptions, and that this is a specific evaluation that can be made by an attorney to determine what bankruptcy options are available to an individual. Chapter 13, or “wage-earner plan,” is a special kind of bankruptcy which allows a person to continue to pay on debts under an installment payment plan administered by a trustee.

If you have only a few debts, you could contact your creditors to try to work out a payment plan with them, rather than pursuing bankruptcy. Sometimes you can obtain help in avoiding bankruptcy by contacting a local consumer credit counseling agency, consumer credit bureau, or Mid-Penn Legal Services in the Berks County area.

If you do feel bankruptcy is necessary, your lawyer will explain the procedures, evaluate your exemptions and debts, handle the filing, as well as all other matters in the proceeding.

The Berks County Bar Association’s Lawyer Referral can help you locate an attorney. Call 610.375.4591 for a referral to a qualified lawyer.