Bankruptcy

What is Bankruptcy?

Just as great wealth can generate yet more wealth, great debt can generate more debt. When people find themselves in a situation where there is no real chance of fully repaying their debtors, bankruptcy may be of benefit to both debtor and creditors. The debtors may get a financial fresh start, and the creditors know that the bankruptcy system is designed in part to ensure that no one creditor benefits unfairly at the expense of other creditors.

Chapter 7 Bankruptcy requires the debtors to surrender their non-exempt personal possessions in exchange for the complete discharge of unsecured debts. Most people who file Chapter 7 are able to “exempt”, or keep, most or all of their personal possessions.

Chapter 13 Bankruptcy does not require the surrender of possessions, but instead requires the debtor to pay a portion of their income over a 3-5 year period to their debtors, after which remaining unsecured debt will be discharged.

It should be noted that bankruptcy cannot be used to discharge student loans, child support payments, or tax debt.

How can Fetter McDermott help me with Bankruptcy?

Declaring bankruptcy can be a difficult process. There are forms to fill out, documents to file, and many small — but important — steps that must be completed correctly.

Our attorneys have experience helping clients in Williamsport and Lycoming County navigate the bankruptcy process. We know the forms, the documents, and all of the procedures, and we will guide you through them at a pace that is comfortable for you.

If you would like an evaluation of your financial situation to determine if bankruptcy is right for you, please contact our office and schedule a free initial consultation.