Bankruptcy is a difficult decision to make for anyone, and can be incredibly daunting. It is important to know which type of bankruptcy to file before jumping in, though. Here at The Law Office of Christian M Rieger, we are committed to helping people navigate this difficult process successfully. In this blog post, we will give you an overview of the two most popular types of bankruptcy in Pennsylvania – Chapter 7 and Chapter 13 – and help you figure out which might be the better option for you.

Chapter 7 Bankruptcy:



Chapter 7 Bankruptcy, also known as liquidation bankruptcy, is typically ideal for those who do not have a lot of assets, or have assets that can be exempted. If you ask most bankruptcy attorneys which type of bankruptcy they are most frequently asked about, the answer is likely to be Chapter 7.

The process begins when an individual files a petition and schedules with the bankruptcy court. In Chapter 7, a trustee will be appointed to administer and review the case. The trustee will then liquidate assets to pay creditors. Typically, Chapter 7 bankruptcies are over within six months, allowing individuals to start gaining financial stability quickly.

Chapter 13 Bankruptcy:

Chapter 13 Bankruptcy, also called reorganization bankruptcy, is usually ideal for those who want to keep their non-exempt assets or are behind on mortgage or car payments. Under this type of bankruptcy, the court will give you a way to pay off your debts over a period of time, typically three to five years.

Your debts will be reorganized into a payment plan that you will make payments on to the bankruptcy court. This payment plan is set up so that the debtor can afford to pay off their debts without overburdening themselves. Chapter 13 is often seen as a better alternative for people who do not qualify for Chapter 7, or those who have a steady income.

Who should file for Chapter 7?

Chapter 7 Bankruptcy is an excellent option for people who have little to no disposable income. If you are unable to pay your expenses with your current income or have been laid off, the Chapter 7 process can help you!

Who should file for Chapter 13?

If you are behind on your mortgage or car payments or have a regular, steady income that would be enough to pay off your debts if they were reorganized into a payment plan over time, then Chapter 13 may be a better choice. If you file for Chapter 13, you will be able to keep your non-exempt assets and pay back your debts over a period of time instead of losing everything.

Deciding which type of bankruptcy is right for you is a difficult decision. We are committed to helping each of our clients make this decision by providing them with knowledge and guidance. We also help them throughout the process, ensuring that they have the best chance of recovering after a bankruptcy. The Law Office of Christian M Rieger is here to help Pennsylvania residents navigate the process of bankruptcy and emerge with a fresh start. Reach out to us today to learn more about how we can help you.