Discharge of Debt

John M. Kenney is a Bucks County bankruptcy attorney who can represent people seeking to reorganize their finances or discharge their debts. Mr. Kenney has been handling these cases for more than three decades, working through the legal system to help clients move forward in the face of mounting debt. He understands federal bankruptcy laws and knows how they are applied in a broad range of circumstances. Mr. Kenney works to make the process as smooth as possible, while keeping clients aware of their situations and options through honest communication. He assists individuals in the Levittown area and many other Pennsylvania communities.

There are two main types of bankruptcy tools that may be available to individuals whose debts exceed their assets. Chapter 7 bankruptcy allows the filer to extinguish or discharge most or all of his or her debts. This tool is available only to individuals whose income is below the median level in the state.

A Chapter 7 debtor, in most cases, retains all of his or her assets – with some exceptions by taking exemptions or allowances which are generously available through the Bankruptcy code. Although bankruptcies are largely governed by federal law, the state property exemptions are available in a Pennsylvania filing which may be more advantageous. One key example for Pennsylvania residents to keep in mind is that state law allows the entire property to be exempted in a Chapter 7 bankruptcy in the event of single married filer who owns property jointly with his spouse who is not filing.

Most remaining debts – like credit card charges, medical bills, personal loans, and utility bills – are discharged in a standard filing. Some debts cannot be discharged, however. They include student loans, child support payments, and government fines and penalties, among others. In some cases, the holder of a debt that is usually dischargeable can ask a bankruptcy court to keep the debt in place, in the event of fraud or other circumstances support such a move.

Chapter 13 bankruptcy, on the other hand, is a reorganization process in which the filer pays back debts over time. A person who is delinquent on mortgage payments or facing foreclosure but wants to try to keep his or her home can resort to the bankruptcy process and file a Chapter 13. As a result, a Chapter 13 payment plan is offered to pay the mortgage debt which is in arrears over a 36 to 60 month plan which in most cases results in other debts being actually discharged.

Attorney John M. Kenney helps clients use the bankruptcy process to address their debt in an advantageous way under the circumstances. Whether you are seeking to free yourself of swarming payments or reorganize existing debt to make it more manageable, he can guide you through the process with efficiency and care. He is committed to providing personalized legal services, taking the time to understand each individual’s situation. If you or a loved one is considering seeking bankruptcy protection, or you need a foreclosure attorney to help protect your home, contact Bucks County bankruptcy lawyer John M. Kenney at (215) 547-3031 or through our online form to set up a free consultation. Mr. Kenney represents Pennsylvania residents seeking to reorganize their finances in communities such as Levittown, Bristol, Morrisville, Fairless Hills, Yardley, and Langhorne.