Bankruptcy filings in Central Pennsylvania are down, as they are nationwide. Due to the relatively healthy economy, this fact should not surprise anyone. The mix of cases that are being filed is more notable.
At the close of February in Central Pennsylvania, personal Chapter 13 filings outnumbered personal Chapter 7 filings. A Chapter 7 is filed when people are prepared to simply walk away from their debt. A Chapter 13 is filed when people want to reorganize their debt.
In the economic downturn of 2008, the overwhelming majority of filings were in Chapter 7. At one point, nationwide Chapter 7 filings were 85% of the consumer cases. Now, with a relatively healthy economy coming out of an economic slow time, many people are employed and wish to save their homes, their cars, etc., and are looking to restructure their debt rather than simply walk away from it.
It will be interesting to see if this trend continues. Regardless, CGA is prepared to assist all consumers with debt restructuring, either Chapter 13 or Chapter 7.
Shareholder | Bankruptcy and Debt Restructuring Chair | Attorney
Larry Young is a shareholder with CGA Law Firm and currently chairs the firm’s Bankruptcy and Debt Restructuring group. He focuses his practice on consumer bankruptcy matters, Chapter 11 and corporate reorganizations, debt restructuring, and workouts. Larry is certified as a Consumer Bankruptcy Specialist by the American Board of Certification and is one of only 25 attorneys who have this designation throughout the Commonwealth. He is also the solicitor for Manchester Township and served as a Township Supervisor for 10 years.
Read Larry’s Bio Page in full HERE.