Chapter 7 Bankruptcy

Learn what’s considered as unsecured debt and if filing Chapter 7 bankruptcy is appropriate for your situation.

  1. RQP Law
  2. Bankruptcy Law
  3. Chapter 7 Bankruptcy

When is Chapter 7 the best bankruptcy option for debt relief?

Chapter 7 bankruptcy allows you to discharge all eligible debts in exchange for selling any unprotected property in order to pay your creditors. At RQP Law, we’re often able to protect your property so that you never have to sell anything.

Schedule a FREE consultation with our bankruptcy attorneys in Pottstown, PA

Keeping assets when filing for Chapter 7 bankruptcy in Pennsylvania

When filing for bankruptcy protection, certain state and federal exemptions can help make sure you don’t lose your personal assets. In Pennsylvania, your home, car, retirement accounts and personal belongings are protected in bankruptcy. These state and federal exemptions can be complicated, though, as they work in different ways to protect different types of assets. If you claim exemptions incorrectly, you may end up forfeiting property that you shouldn’t lose.

That’s why it’s important to hire an experienced local bankruptcy lawyer. Our attorneys keep up to date with all changes to bankruptcy exemptions that may affect clients in Chester, Berks, and Montgomery counties. We’ve even successfully argued down the amount of taxes owed in bankruptcy court by establishing flaws and miscalculations in the client’s tax history.

Assets that may not be fully protected

Although certain assets may not be protected completely under state and federal exemptions, our attorneys will work with you to develop a plan to protect as many of these assets as possible, including:

  • Social Security Disability insurance benefits
  • Whole-life insurance policies
  • Personal injury damages
  • Workers’ compensation settlements
  • Equity in your home

Unlike other attorneys or bankruptcy preparation services, we won’t take a cookie-cutter approach to your case in order to save time and effort. We develop plans specifically tailored to you and your unique needs.

Student loan debt and filing for Chapter 7 bankruptcy

Student loans normally can’t be discharged in bankruptcy. Some exceptions include if you’re facing a serious hardship such as a permanent disability or can show evidence that you’re unable to afford a minimal standard of living for yourself and/or your dependents. Most bankruptcy courts will factor in whether you’ve made a good-faith effort to try to keep up with your student loan payments.

Because discharging student loans in bankruptcy is extremely complicated, you should only trust the most experienced, knowledgeable student loan debt attorneys. Our Pottstown bankruptcy office has successfully handled numerous student loan discharge cases across Southeastern Pennsylvania.

Student loan discharge vs. deferment

While certain student loans can be eligible for forbearance or deferment (ways to temporarily postpone or reduce loan payments, with or without interest accruing), others may be eligible for complete discharge in certain extreme cases. Generally, to prove that your student loan debt should be completely discharged, we need evidence that you have a significant medical condition, have become incapacitated or are dealing with severe hardship that affects your ability to work and pay your loan. If our student loan debt attorneys can prove this, we can make all of your student loans disappear.

Student loans vs. personal loans

Just because you borrowed money to help you get through school, it doesn’t mean that you have an actual student loan. Many people take out independent or personal loans to help them get through school. Unlike student loans, these personal loans are treated like regular unsecured debt and can be discharged normally through bankruptcy.

Understanding your options when filing for bankruptcy

Bankruptcy Law

Learn about the bankruptcy options available to you and how we can help.

Chapter 7 Bankruptcy

Learn about unsecured debt and if Chapter 7 makes the most sense.

Chapter 13 Bankruptcy

Reorganize cash flow and provide debt relief from your creditors.

Bankruptcy Alternatives

Filing for bankruptcy isn’t always the best solution for debt relief.

Schedule a FREE Consultation

Our experienced attorneys are here to answer your questions about Chapter 7 bankruptcy in Pennsylvania. We represent clients in Pottstown, Norristown, West Chester, Reading, and surrounding areas. Contact our Pennsylvania debt relief law firm today to learn more about what we can do to help you overcome your legal troubles.

We are pleased to meet with you in either of our Pennsylvania offices to discuss your financial challenges.

Primary Office

192 South Hanover Street
Suite 101
Pottstown, PA 19464

Satellite Office

210 West Grant Street
Lancaster, PA 17603