Bankruptcy
The Elderkin Law Firm has provided legal representation and counseling to a broad range of clients in bankruptcy matters in Erie, Pennsylvania, including:
- Debtors in Chapter 7 (liquidation) bankruptcy cases;
- Debtors in Chapter 11 and Chapter 13 reorganization bankruptcy cases;
- Secured lenders in Chapter 11 and Chapter 7 bankruptcy matters; and
- General unsecured creditors in all manner of bankruptcy proceedings.
The most common type of bankruptcy is a personal bankruptcy, also called a Chapter 7 proceeding. Here, the debtor is often allowed to extinguish debts without paying creditors and without losing valuable assets. Federal law provides rather generous exemptions, allowing protection from creditors for many, if not all, of the debtor's assets. In order to qualify for a Chapter 7 bankruptcy, a debtor must usually not earn more than the so-called "median income." As of March 15, 2011, the Pennsylvania median income for a one-person household is $44,897. For a two-person household, it is $53,706. If you are making more than the median income, it is much more difficult to qualify for a Chapter 7 bankruptcy.
Another common type of bankruptcy is a Chapter 13 proceeding. It is also known as a "wage-earner's reorganization." Typically, if you are making more than the median income and you are having problems paying your bills, a Chapter 13 bankruptcy should be your first consideration. A Chapter 13 bankruptcy may also protect assets that you might lose in a Chapter 7 proceeding. In a Chapter 13 case, the debtor pays back all, or a portion, of any unsecured debts (for example, credit cards, medical bills, signature loans, etc.) over time through a "plan of reorganization" lasting from three to five years. These plan payments, made over time, are usually made by way of a payroll deduction. A Chapter 13 trustee then distributes those funds to the creditors under the terms of the plan of reorganization.
In 2010, over 13,000 individuals and businesses filed for bankruptcy in the Western District of Pennsylvania. Nationwide, 1.53 million bankruptcies were filed in 2010. Statistically, it is quite likely that you will need the protection of the bankruptcy laws, or your family or business will be affected by a bankruptcy filing. If you are thinking about filing for personal bankruptcy or for your business, or if someone who owes you money has filed for bankruptcy, call the Elderkin Law Firm for a consultation with one of our experienced bankruptcy attorneys, at our Erie, PA office, who can answer your questions and help you with your legal needs.
Bankruptcy Lawyers: