Chapter 7 and Chapter 13 bankruptcy options can provide relief for individuals struggling with debt.
Chapter 7 bankruptcy, also known as liquidation, involves the court-ordered distribution of assets to creditors. In Pennsylvania, Chapter 7 is generally considered a last resort due to potential losses of non-exempt assets.
Declaring bankruptcy can provide several benefits for individuals in financial distress. One major advantage is the elimination of debt, which can alleviate immediate financial burdens and give time to reorganize finances.
Additionally, declaring bankruptcy may help restore credit scores and improve overall financial stability. Pennsylvania law allows individuals to make payment plans with their creditors, providing a structured path to becoming financially stable again.