Most people in Pennsylvania experience financial setbacks at one time or another. In many cases, consumers can dig themselves out of their debt situations. However, if they cannot, one of the best ways in which to eradicate overwhelming debt is to file for personal bankruptcy.

Both Chapter 7 and Chapter 13 bankruptcy exist for consumers. Chapter 11 bankruptcy is typically reserved for financially struggling companies, whereas Chapter 12 bankruptcy is usually reserved for fishermen and farmers. Chapter 7 and Chapter 13 bankruptcy both have their unique benefits.

Chapter 7 bankruptcy allows consumers to get rid of unsecured debt that is dischargeable, whereas Chapter 13 bankruptcy allows a debtor to make payments on his or her debts. Chapter 7 bankruptcy is recommended for those who are financially destitute. In other words, they do not have  the employment they need to pay down their debts. Meanwhile, Chapter 13 bankruptcy is indicated for those who are able to work and pay off their creditors according to their new payment plans. The court must approve their repayment plans, with a trustee being appointed to collect their payments for them.

No one enjoys experiencing financial stress. However, sometimes, it cannot be avoided, as adverse job or economic changes can occur at any time. In these situations, consumers may want to pursue personal bankruptcy, as this legal process is designed to help people who are under the weight of crushing debt to experience much-needed financial freedom. An attorney can walk a consumer through the filing process so that he or she completes it properly and confidently in Pennsylvania.