Erie, PA asked in Bankruptcy for Pennsylvania

Q: I have charge cards bills adding up to $12000 do I do a chapter 7 or 13?

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1 Lawyer Answer
  • Consumer Law Lawyer
  • Cary, NC
  • Licenced in Pennsylvania

A: The amount of debt is not the determining factor for you. The question is whether you have assets and whether you make too much money to file a chapter 7. In a chapter 7, you get to keep only what is exempt under the state or federal exemptions. The exemptions in PA are limited, so if you have a house or car, you would probably want the federal exemptions. Assuming that all your assets would be exempt in a chapter 7 the next question is whether you meet the income test. Each state is different and you would need to sit down with a bankruptcy attorney to see whether you make too much money. If you do, then you cannot file a chapter 7 and have to file a chapter 13.

The difference between the two is this - with a chapter 7 you keep all your assets if they are exempt. You file...

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