Five Frequently Asked Questions about Bankruptcy
If you are considering filing for bankruptcy in Pennsylvania, you likely have a few questions. The thought of filing for bankruptcy can be intimidating and can prevent you from looking into an option that could help you tremendously. At Georgette Miller & Associates, we have helped thousands of clients successfully file for bankruptcy.
Our Philadelphia bankruptcy attorneys understand that there is never an ideal time to file for bankruptcy. We work with clients to explain the different types of bankruptcy and help them select the process they like the most. Call 1-866-96-GM LAW and start your path to financial freedom today.
Will Bankruptcy Wipe Out All of My Debts?
It depends on the type of bankruptcy for which you file. A Chapter 7 bankruptcy will result in all debts wiped out except for the following types of debt:
- Child support
- Property settlements
- Some tax liability
- Criminal restitution
- Debts not listed on the bankruptcy petition
- Loans procured through fraud or by knowingly giving false information to a creditor who relied on the information while making the loan
- Debts that resulted from willful and malicious harm to another person
- Student loans owed to the government or a school, unless payment is an undue hardship
- Debts for personal injuries or deaths resulting from driving while intoxicated
- Private debts incurred in order to pay taxes
How Will Bankruptcy Affect My Credit?
Bankruptcy can appear on a person’s credit record for 10 years. Since bankruptcy only wipes out old debts, a bankruptcy applicant will be in a better position to pay current bills off. For many individuals, filing for bankruptcy negatively affects their credit in the short term but allows them to build up their credit score back up over time.
Can I Keep Any Money or Property After a Pennsylvania Bankruptcy?
You can keep some assets after filing for bankruptcy, namely those assets that are exempted from the bankruptcy process. Many of our new clients assume that if they file for bankruptcy, they will not have any money left over when the process is complete. However, many people who file for bankruptcy are able to keep certain types of property and money after filing for bankruptcy.
If you receive an inheritance, life insurance benefits, or a property settlement, you may need to use that money or property to pay your debts. If the money or property is not exempted under federal and Pennsylvania bankruptcy law, or you received it within 180 days of filing for bankruptcy, you may have to pay creditors using those assets.
Should I Hire a Bankruptcy Attorney?
The bankruptcy process can become complicated, but know that you are not alone. The Philadelphia bankruptcy lawyers at Georgette Miller & Associates can help you make a plan that will benefit you and your family. Our empathetic attorneys are deeply familiar with Pennsylvania’s bankruptcy laws and can give you effective counsel as to which type of bankruptcy is right for your family. We walk with our clients throughout the entire process. Call 1-866-96-GM LAW and start your path to financial freedom today.