

Before filing a bankruptcy case, you and your attorney should analyze your eligibility for the different forms of debt relief available and which form will be most beneficial for you. Be sure you understand the type of relief that you can obtain and its limitations.
The purpose of filing a chapter 7 case is to obtain a discharge of most of your existing debts. Chapter 7 is designed for those in financial difficulty who do not have the ability to pay existing debts.
Chapter 13 is designed for individuals with regular income who would like to pay all or part of their debts in installments over a 3 to 5 year period.
Chapter 11 is designed for the reorganization of a business, but is also available to consumer debtors. Its provisions are quite complicated, and any decision by an individual to file a chapter 11 petition should be reviewed with an attorney.
Chapter 12 is designed to permit family farmers and fishermen to repay their debts over a period of time from future earnings and is similar to chapter 13. The eligibility requirements are restrictive, limiting its use to those whose income arises primarily from a family-owned farm or commercial fishing operation.
If you do decide to seek bankruptcy relief, you may represent yourself, you may hire an attorney to represent you, or you can get help in some localities from a bankruptcy petition preparer who is not an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. Ask to see the contract before you hire anyone.
If you're still not sure if bankruptcy is the best option, contact us for a free consultation.
Since 1974, the attorneys at RHP Law Group have been providing comprehensive legal services and expertise to individuals, families, businesses and agri-businesses throughout Central Pennsylvania.