Bankruptcy Overview

Debt relief is on the horizon

Debts can come upon us at any time, for any reason.  Job loss, divorce, home foreclosure, serious illness, and injury can force anyone into arrears.  With nearly ten years of focus on bankruptcy law, Paula J. Cialella, Attorney at Law understands what you are going through and wants to help.

This is a confusing time.  Please find some information below on the different types of bankruptcy that apply to you, or simply call our law firm at 888.328.2108 to schedule a free initial consultation on resolving your debts.

Chapter 7

Chapter 7 bankruptcy, also referred to as liquidation, allows debtors to compile non-exempt assets to pay their debts.  Non-exempt assets include cash, bank accounts, stocks, bonds, collections of value, heirlooms, second homes, and second cars.  Available to businesses and individuals, Chapter 7 allows debtors to keep some property while clearing most or all debts so you can walk away with a clean slate.  Examples of debts that may not be discharged include—

• Student loans
• Taxes
• Alimony and child support
• Criminal fines and court-ordered judgments

To be eligible for liquidation, a debtor must earn income below Pennsylvania's median income.  For those who earn more than the median income, a bankruptcy lawyer must apply a complicated formula to assess your assets, income, and debts to determine eligibility.

Chapter 11

Available to businesses facing insurmountable debt, Chapter 11 addresses the complex financial needs of companies by helping to create a reorganization plan.  The reorganization plan encompasses all debts to be repaid and establishes a payment schedule.  Each payment will be routed to the appropriate collectors.  To be valid, this payment plan must be presented to and approved by a bankruptcy court. You may also be asked to file balance sheets and cash flow/income statements to the court in order to disclose your repayment capacity.

Chapter 13

Individuals looking to relieve themselves of debts may consider filing Chapter 13.  Similar to Chapter 11, Chapter 13 allows individuals to consolidate your debts into one repayment plan—to be approved by the court—and make regular payments, usually over three to five years.  This is typically reserved for individuals who make a steady income. 

Filing Chapter 13 may also help you save your house from foreclosure.  Contact Paula J. Cialella to discuss your particular situation and your debt relief needs.

What you need to bring with you to your initial consultation

We do all the legwork in your bankruptcy case, but we need to review all of your financial documents before we can help.  When you come to your free initial consultation, please bring your financial documents:

We begin reviewing your documents and inform you as soon as possible of your best options. 

We can help you

New Castle law firm Paula J. Cialella, Attorney at Law represents debtors in—

Contact the firm online or call 888.328.2108 to schedule a risk-free, no-fee initial consultation.  We look at your documents, discuss your situation and your needs, and begin to devise a debt relief solution that works for you.