David R. Black's Bankruptcy Legal Group
a division of Black, Stranick & Cella, P.C.
What is Media Personal Bankruptcy?
Chapter 7 and Chapter 13 Bankruptcies
Today’s economic situation has forced many individuals into financial distress. Mounting credit card debt and unforeseen medical expenses has put some people in the position where they can not pay their bills. A divorce or job loss may have others avoiding their creditors. If you are in a similar situation then personal bankruptcy may be right for you.
Personal bankruptcy is a federal court process designed to help individuals eliminate their debts or repay them under a reorganization plan. Personal bankruptcies in Media are generally of two types; “liquidations" or "reorganizations."
In a Media Chapter 7 bankruptcy a debtor is permitted to keep certain property. Most Chapter 7 bankruptcies are called “no-asset” bankruptcies, meaning all of the debtor’s property is protected. With certain exceptions, all of a person’s debts are forgiven in a Chapter 7 case. Once a case is filed, the Court assigns a Trustee who schedules a meeting with the debtor and debtor’s attorney. Although creditors are invited, creditors almost never attend. In the rare case where the debtor has more property than he or she is allowed to exempt (protect), the Trustee collects the non-exempt property, sells it and distributes the proceeds to creditors. With certain exceptions, all of debtor’s debts are eliminated or “discharged”. Chapter 7 personal bankruptcy in Media is an option for those with few assets and moderate or little income. The new bankruptcy laws allow all those below the state’s median income to qualify for Chapter 7. For debtors whose incomes are higher than the state median, a more complicated formula is applied to determine whether or not the debtor qualifies.
Chapter 13 in Media is often referred to as "reorganization" bankruptcy and is for consumers with a regular income. Chapter 13 can also be used to save a debtor’s home from foreclosure. Under Chapter 13 the debtor makes regular payments to his creditors over an extended period of time to repay the “restructured” debt. The laws are designed to require you to pay at least the value of your non-exempt property. Exemptions vary from state to state and are sometimes waived in favor of federal exemptions.
Both types of Media personal bankruptcies have numerous rules about who can file, what kinds of debts are covered, and what property you are allowed to keep. A consultation with an experienced Media bankruptcy attorney can help sort out these matters for you and put you on the path to financial recovery.
