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Bankruptcy Help In Westmoreland County

By Maureen Kroll, RN, MN, JD

Filing Bankruptcy -- Still a Viable Option

When the bankruptcy law changed last year, many people rushed to file for protection under the Bankruptcy Act. The law did change many areas, but the protection of these laws still exist to help people who have been overcome with debt because of loss of income, divorce or major health issues.

One major change centers around the debtor’s ability to pay his monthly financial obligations. Does the debtor have enough income? The new law requires a Means Test to be administered to determine the debtor’s income. This test allocates income for shelter, transportation, food and other necessary expenses.

Next, the test accounts for the person’s other debts such as credit cards or car payments. If one’s debts are greater than their income, a presumption does not arise, meaning the debtor most likely would qualify for the protection afforded by the Bankruptcy Act.
Also, one, who is contemplating filing for bankruptcy, must do pre-petition counseling with an approved credit counseling agency.

Finally, it is time to file. The debtor includes all information regarding one’s assets and debts. If the assets are too high, then filing a Chapter 13 Bankruptcy Petition may be warranted and one’s debts will be paid back at a certain percentage of the debt.

If you do not have significant assets, then a Chapter 7 or, complete liquidation or discharge of all debts will be the choice. However, one may not discharge all of the debts. A car loan can be reaffirmed, or even a credit card. Depending on the amount of equity in a home, even that debt can be reaffirmed and your home can be still retained.

Filing for the protection of bankruptcy still remains a viable option for someone who has suffered a loss or experienced a serious illness.

Being relieved from the constant calls from creditors and the feeling of hopelessness, plus getting a fresh start are benefits that can only be achieved by using the protection of these specialized laws. Even though the laws have changed – do not rule out this effective and permanent solution to your financial woes.

For help with Personal Bankruptcy and filing bankruptcy, please don't hesitate to Contact Us to learn more about bankruptcy might make a difference in your situation.

Service Area

Attorney Maureen Kroll provides services in Westmoreland County, PA, including the communities of Greensburg, Irwin, Jeannette, Ligonier, Mt. Pleasant, North Huntingdon, Latrobe, and Scottdale.


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