Harold Shepley

Pennsylvania Chapter 13 Bankruptcy

Lawyers for debt reorganization in Harrisburg, Pittsburgh and all of PA

If you can afford to pay off a portion of your debt over time, Chapter 13 bankruptcy may be the debt relief option for you. Chapter 13 is also known as reorganization. Your creditors are required by the court to accept a portion of what you owe, and you pay your debts in a single monthly payment over three to five years. Harold Shepley & Associates, LLC can help you use Chapter 13 to save your property, including your home and car.

Qualifying for Chapter 13 bankruptcy

Chapter 13 bankruptcy qualification is determined by the federal Bankruptcy Code. First, your debt load is limited to:

  • $1,081,400 in secured debt — property loans such as mortgages and car loans
  • $360,475 in unsecured debt — general debts such as credit card, utility and medical bills

Second, you must have a stable income that leaves you with disposable income to make your Chapter 13 payments. Disposable income is the amount left over after you pay for the basic necessities of life, such as food and clothing. Our bankruptcy lawyers study the relationship between your income and your debt to determine whether Chapter 13 bankruptcy is your best option.

The major advantages of a Pennsylvania Chapter 13

If you can afford to file for bankruptcy under Chapter 13, it is usually preferable to Chapter 7 because:

  • Your assets are not liquidated
  • Your overall debt obligation is reduced

Our attorneys help you prepare and submit a budget plan to the bankruptcy court. We show how much income you anticipate in the coming years, the debt you are facing, and the payments that you can reasonably make. When your Chapter 13 petition is accepted, your debt obligation is significantly lowered and your assets are protected as long as you keep up with the payment schedule.

How Chapter 13 is different from debt consolidation

Consumer credit counseling (CCC) offers debt consolidation, in which your debt is put together into a single monthly payment. However, this is very different from Chapter 13 debt reorganization. Some of the advantages of Chapter 13 bankruptcy over CCC are:

  • You have the protection of the federal Bankruptcy Code
  • Your total debt obligation is reduced
  • You can pay back your secured debts through Chapter 13
  • Creditors are required to accept less than you owe

None of the above benefits are available through the debt consolidation plans offered by CCC providers.

Find out if Chapter 13 bankruptcy is available to you

If your debt is not too high and you have a steady income, you may be able to use Chapter 13 bankruptcy to get yourself out of debt. Contact Harold Shepley & Associates, LLC at (877) 553-3389 for a free consultation. The firm helps people from Pittsburgh to Harrisburg and everywhere in between. Pennsylvania bankruptcy lawyers also helping clients with chapter 7 bankruptcy.