Leading bankruptcy attorney Bryan Keenan, founding partner at Bryan P. Keenan & Associates in Pittsburgh, PA, outlines why filing for Chapter 7 is often the best route. For more information please visit https://bryankeenanattorney.com
— In a recent interview, leading bankruptcy attorney Bryan Keenan, founding partner at Bryan P. Keenan & Associates in Pittsburgh, PA, explained why filing for Chapter 7 is often the best route.
For more information please visit https://bryankeenanattorney.com
When asked for a comment, Keenan said, "While Chapter 7 and Chapter 13 bankruptcies are the most common types of bankruptcies, they differ quite a bit from each other. Chapter 7 is often better suited for many, something that the majority of the American population is unaware of."
However, Keenan made a note of the fact that Chapter 7 is suited for people in certain situations.
"In general, Chapter 7 is for people who don't have a lot of equity in their home that have accrued debt from credit cards, medical bills, as well as personal loans. Chapter 7 is also for those who don't earn above the median income in their state. In other words, Chapter 7 is not for high-income filers or anyone who is facing foreclosure or repossession," he said.
In most situations, Chapter 7 offers more advantages to the filer than Chapter 13 bankruptcy.
"In a nutshell, filing and completing a Chapter 7 bankruptcy is comparatively quick as it normally takes only four months. Furthermore, people who file under Chapter 7 are not required to repay unsecured debt, unlike the three-to-five-year repayment plans in a Chapter 13," Keenan said.
He further added that Chapter 7 allows for filers to help safeguard their property.
"Many people put filing for bankruptcy on the back burner because they are afraid that they will lose their property after declaring bankruptcy. This is not the case for the majority of Chapter 7 filers who keep most or all of their possessions, particularly if they don't have a significant amount of equity," he added.
When asked about what happens with house and car ownership in a Chapter 7 bankruptcy, Keenan replied, "Essentially, you'll be able to maintain ownership if you haven't fallen behind on payments and can continue paying after filing for bankruptcy and can exempt the amount of equity in the property."
When someone declares bankruptcy under Chapter 7, their debt slate is largely wiped clean. However, there are exceptions to the types of debts cleared by Chapter 7.
"The non-dischargeable debts for a Chapter 7 bankruptcy include student loans, income tax debt, and child support/alimony ," he added.
Name: Bryan Keenan
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Organization: Bryan P. Keenan & Associates
Address: 993 Greentree Rd #101, Pittsburgh, PA 15220, USA
Release ID: 88951134