When a Pittsburgh resident is struggling financially and is considering Chapter 13 bankruptcy, it is important to get good information and professional advice. There are benefits to Chapter 13 that make it preferable to many debtors when assessed in comparison to Chapter 7. For example, a debtor who uses Chapter 13 can retain certain properties without fear of repossession or liquidation. There will be three or five-year plan to repay the debt by sending payments to a trustee who will in turn send them to creditors. These are the basics. Since situations often differ, there are other factors that should be understood.
For Pittsburghers who are facing overwhelming debt and do not have property they want to retain, a Chapter 7 bankruptcy liquidation is the easiest and fastest way to clear debt and get back on stronger financial footing. However, there are basic requirements when filing for Chapter 7. One is the means test. Understanding what the means test is and what steps must be taken is critical to a case.