Bankruptcy Overview

U.S. Constitution Article 1, Section 8

Bankruptcy is a Federal Law which allows consumers and businesses to eliminate or repay some or all of their debts under the protection of the Federal Bankruptcy Court. For the most part, bankruptcies can be divided into two types — Chapter 7 and Chapter 13.
                                      

Chapter 7 or Chapter 13?

 

Your eligibility to file either a Chapter 7 or Chapter 13 is determined by your family's income, assets and family size. 


  • A filing under Chapter 7 customarily occurs if your family's income is below the median (average) income for your family size. Once you are under this threshold, your debt (and that of your spouse, if filed jointly) will be discharged
  • A filing under Chapter 13 typically occurs when your family's income exceeds the median income for your family size. 


See below for answers to the most frequently asked questions.

Empty wallet

Chapter 7: Frequently Asked Questions

Is this private?

What happens to my Credit Score?

What happens to my Credit Score?

Yes. Your bankruptcy status will not be published in the local paper or posted freely online. 

What happens to my Credit Score?

What happens to my Credit Score?

What happens to my Credit Score?

Most individuals considering filing for bankruptcy are facing maxed our credit cards and collections. Bankruptcy provides a fresh start! A discharge erases credit card balances, store cards and medical bills!


Within a year of discharge, and with good financial management, your credit score will be better than before you filed!

Will I lose everything?

What happens to my Credit Score?

Can I discharge Student Loans?

There is zero truth that you will automatically lose your home or car. The average consumer retains his/her home, car and other possessions. We will discuss how to "exempt" (protect) your assets.

Can I discharge Student Loans?

Can I discharge Student Loans?

Can I discharge Student Loans?

Unfortunately, the vast majority of Student Loans are not dischargeable through bankruptcy. 


Visit StudentAid.gov to review the requirements for loan forgiveness and income based repayment options. 

When is my hearing?

Can I discharge Student Loans?

When is my hearing?

Your hearing, formally known as a Meeting of Creditors, will be scheduled four (4) to six (6) weeks from the date we filed your Petition. While the term Meeting of Creditors sounds foreboding, you will be accompanied by Attorney Bach. Furthermore, the vast majority of hearings are not attended by any creditors. 

Discharge

Can I discharge Student Loans?

When is my hearing?

Your discharge from bankruptcy will occur on or about 60 days from the date of your Meeting of Creditors. 

Chapter 7 Forms

Is your spouse unable to attend the meeting? Have him/her review the Client Authorization form to allow you to act on their behalf. 

Chapter 13: Overview

 

When filing under Chapter 13, individuals make monthly interest free payments to a Trustee over three to five years to repay some or all of your debt. The amount of your repayment is based on your unique situation and financial ability.

Filing a Chapter 13 also allows families to save their home from foreclosure or vehicles from repossession. 

Chapter 13: Frequently Asked Questions

How do I monitor my Chapter 13 payments?

Where should I mail my Chapter 13 payments?

Where should I mail my Chapter 13 payments?

Please visit www.trustee13.com. Select Charles DeHart. You can access only your case by entering your case number (Example:(yy-nnnnn)) as the user id & the last 4 digits of your Social Security Number as your password. 

Where should I mail my Chapter 13 payments?

Where should I mail my Chapter 13 payments?

Where should I mail my Chapter 13 payments?

Please mail Chapter 13 payments to:
Charles J. DeHart, III, Trustee
P.O. Box 7005
Lancaster, PA 17604  


Or pay electronically

I have not yet received a letter from the Chapter 13 Trustee, what should I do?

I was not in arrears when I filed my case, why does my plan include a past due payment?

I was not in arrears when I filed my case, why does my plan include a past due payment?

See below to download your case instructions from the Chapter 13 Trustee, Charles J. DeHart, III. 

I was not in arrears when I filed my case, why does my plan include a past due payment?

I was not in arrears when I filed my case, why does my plan include a past due payment?

I was not in arrears when I filed my case, why does my plan include a past due payment?

Depending on when your case is filed, your mortgage company and auto lien holder will file a Proof of Claim that factors in all payments up to the filing date. If they did not yet receive this month’s payment they will include an arrearage amount that must be factored in your chapter 13 plan.