Considering Filing For Bankruptcy
Whether youre considering a personal or business bankruptcy, the government offers various different programs to help you overcome money problems. Most Americans choose one of the following bankruptcy procedures:
- Chapter 7 debt discharge This type of plan is what many people commonly associate with bankruptcy. Once the process is complete, nonexempt debts, such as credit-card balances and medical bills, are eliminated.
- Chapter 11 reorganization Many businesses opt for Chapter 11 because it allows them to keep their doors open while restructuring their debt obligations and reorganizing internal operations.
- Chapter 13 repayment People who are earning income but cannot catch up on past due bills can use Chapter 13 to stop creditor calls and set up a fair plan to repay what they owe over a period of three to five years.
Financial troubles rarely disappear on their own. Bankruptcy is designed to give people the legal tools they need to relieve their debt burden.
Is Bankruptcy Right For Me
Everyones situation is different. While the Bankruptcy Code is a federal law that is uniform across the United States, there are a number of places in which the bankruptcy laws overlap with state laws. That means that the application of the Bankruptcy Code is not uniform from state to state. Moreover, different bankruptcy courts apply the Bankruptcy Code differently so it is not even necessarily true that the laws will be applied the same within the state. It is important that you speak with a bankruptcy attorney from your state that files cases in your district.
At ARM Lawyers, our bankruptcy attorney handles bankruptcy cases in Pennsylvania, , New Jersey, and New York and have offices in each of these states. For more information about the bankruptcy process in your state, feel free to click below:
Bankruptcy Lawyers In Collegeville Pa
Financial difficulty can hit anyone at any time. Job loss, an unexpected illness or injury, loss of business income, a natural disaster, and many other causes can take hard-working people from a comfortable financial position to being buried under a mountain of obligations they cant meet.
When you find yourself in that position, dont lose hope its important to know that a bankruptcy attorney or foreclosure defense attorney can help you. If you are having trouble paying your bills, dont be afraid to ask for the advice of a bankruptcy lawyer. And if youre concerned about the cost, dont be. Your initial consultation with a Montgomery County, PAbankruptcy attorney or debt relief lawyers will be provided free of charge.
There are many options available to those struggling with debt, including negotiation, debt defense, and bankruptcy. A bankruptcy lawyer in Collegeville, PA can explain those options to you. The protections offered by the U.S. Bankruptcy Code can provide the debt relief you need to get back on track and get the fresh start you need. Of course, if you hope to be successful in utilizing these options, you will need the counsel of a topbankruptcy attorney or foreclosure defense attorney in Montgomery County, PA.
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When Filing A Chapter 13 Bankruptcy You File A Repayment Plan Instead
In addition, when filing Chapter 7 you must file a current monthly income and Chapter 7 means test. This shows if you if your income and expenses justify you getting relief under Chapter 7.
If you file for Chapter 13 you must file the statement of current monthly income and expenses which shows if you are able to afford to pay back your creditors,
Lastly, there are forms where you fill in your social security number and another form called a matrix that the court uses to mail notices of your bankruptcy filing to all of your creditors.
A Chapter 7 Bankruptcy May Be Appropriate For You Under The Following Circumstances:
- You have primarily unsecured consumer debts.
- You have either limited equity in your home, you are a renter, or your home is owned as husband and wife and the unsecured debt is primarily in only one partys name.
- You have a moderate or modest income.
- You have little or no money left after paying your necessary living expenses.
- You do not have significant liquid assets.
There are many advantages to a Chapter 7 bankruptcy as compared to other types of bankruptcy. In a Chapter 7, there are no monthly payments to be made. In addition, a Chapter 7 bankruptcy is less costly than a Chapter 13 bankruptcy, and you will receive a Chapter 7 discharge at the end of the process which only takes approximately three to five months from the filing date. Also, if you decide to file a Chapter 7 bankruptcy, you will in most cases immediately stop making payments to all unsecured creditors and will be under the protection of the bankruptcy law. The filing of a bankruptcy, whether it is a Chapter 7, 11 or 13, produces an Automatic Stay which immediately stops all action on the part of creditors. Even though there were significant changes in the bankruptcy laws effective October 17, 2005, most individuals who would have considered filing a Chapter 7 bankruptcy under the old law would still qualify under the post-October 17, 2005 changes.
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Top Benefits Of A Chapter 13 Bankruptcy In Philadelphia
1. Stopping Mortgage Foreclosure or Vehicle Repossession. Chapter 13 Bankruptcy is commonly used to stop pending mortgage foreclosure, tax foreclosure or looming vehicle repossession. Because the Chapter 13 Bankruptcy involves a three to five year repayment plan, the bankruptcy filer can keep their home or vehicle and continue the regular monthly payments, plus pay towards the delinquency in a trustee payment.
2. Reorganization of Debt. If unsecured debt, such as credit cards, personal loans, collections and medical bills, are part of the Chapter 13 Bankruptcy matter, the filer, unlike debt consolidation, will only make payments towards such debts based on what they can afford, rather than based on what they are due and owing. In a Chapter 13 plan, unsecured debts are generally reduced, thereby creating more affordability for ones most important assets, such as their home, car or even rental payments. It is also most common in Chapter 13 Bankruptcy to lower car payments by way of a vehicle cram-down or paying the vehicle through the plan over a new three-to-five-year term, which in essence refinances the vehicle. You can read more about reorganization of debt here.
You can read more about the benefits of filing a chapter 13 bankruptcy in Philadelphia here:
Philadelphia Bankruptcy Lawyer
Affordable Philadelphia Bankruptcy Attorney
An individual coming in to file bankruptcy usually does not have much money and very often cannot afford a lawyer. For this reason, we have easily affordable fees so that virtually everyone can afford our services. In many cases, we can file for bankruptcy even when you have little or no money at all for legal fees. We dont represent rich people. We represent good people who have financial problems.
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What Is The Difference Between Chapter 7 & 13 Bankruptcy
When you declare bankruptcy as an individual, you will probably have two choices for your filing: Chapter 7 or Chapter 13. The bankruptcy chapter that works best for you will be dependent on your financial situation. What might work for one person might not be correct for you, so consult our Pennsylvania bankruptcy attorneysto understand which bankruptcy form should be used.
Our Luzerne County bankruptcy attorneys would be happy to help you decide to file for:
Contact A Pennsylvania Bankruptcy Lawyer Today
Take back control of your financial future. Providing both immediate relief and long-term solutions, bankruptcy could be the answer you have been looking for. Our Pennsylvania bankruptcy lawyer strives to make this process as easy as possible. Contact our law office today to schedule a free bankruptcy consultation! Call or reach out to your closest Pennsylvania office:
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You Need An Experienced Philadelphia Bankruptcy Attorney On Your Side
The Law Offices of David M. Offen provides personal service when you need a bankruptcy lawyer. We have helped over 12,000 clients in the Philadelphia area to obtain a fresh financial start. Bankruptcy provides debt relief and lets you start enjoying life again. You can wipe out or reduce many types of debt. Take action today!Contact us now to schedule a free consultation with a Philadelphia bankruptcy attorney. There are also non-bankruptcy options available and we can advise what is the best option for you based on your individual circumstances. Youll be glad you called.
Dont start the bankruptcy process without consulting us. You can view some of our more frequently asked questions on our bankruptcy FAQs page.
Some people choose to file bankruptcy on their own. In many cases, people come to us having mistakenly chosen the wrong chapter, or having filed bankruptcy under Chapter 7 after transferring property with no mortgage debt to a relative, when they should have never filed bankruptcy. There is a reason why many lawyers come to us when they want to file for bankruptcy protection on behalf of a client. They dont want to make a mistake in doing something which they are not familiar with. Even an innocent mistake with no wrong intent can result in the property being lost which could otherwise have easily have been protected.
You will feel better knowing you have an experienced bankruptcy lawyer on your side.
How A Philadelphia Bankruptcy Attorney Can Improve Your Life
There are many benefits to filing for bankruptcy in Philadelphia. The end result in almost all Chapter 7 bankruptcy cases is the discharge of nearly all of your unsecured debts. Credit card debts, personal loans, medical debt, payday loans, some old tax debts, and many other debts can be eliminated and discharged. If you are in arrears on a car or mortgage then you are required to quickly get caught up if you file for protection under Chapter 7.
If you are unable to get caught up quickly, Chapter 13 bankruptcy will be your much better option as you are given up to five years to get caught up on mortgage loan payments, auto loan payments or back real estate taxes. If a foreclosure has begun or a sheriff sale has been scheduled, it will stop the proceedings against you. If you owe the IRS recent taxes which are non-dischargeable, you can also get up to five years to repay. If you have a high income and are not eligible for Chapter 7 then Chapter 13 is a good option. Chapter 13 freezes your bills and gives you up to five years to pay back based on what you can afford to pay with no interest charges at all.
We can guide you as to which type of bankruptcy filing would get you the best result filing Chapter 7 bankruptcy, filing Chapter 13 bankruptcy or no bankruptcy filing at all.
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What About My Credit Score
If you are looking to file bankruptcy in PA, you need the right lawyer. You want a Pennsylvania bankruptcy lawyer who will not only file your bankruptcy, but go the extra mile to rebuild your credit score. Thats why we do more than simply help you eliminate your debt. We work with you to rebuild your credit score after bankruptcy! Our clients receive free access to 7 Steps to a 720 Credit Score. If credit score is a concern, you should strongly consider bankruptcy over other options. Bankruptcy wins almost every time when you consider bankruptcy vs. debt settlement. Many of our clients see their credit score go up after bankruptcy! Thats because we know how bankruptcy affects your credit score.
Will Bankruptcy Ruin My Life
No. Not even remotely. We actually discuss the credit impact of bankruptcy in more depth in our article what does bankruptcy do to my credit? Bankruptcy can actually help your credit score!
Many times people avoid bankruptcy because they are concerned about negative credit score impact. If this is holding you back, it shouldnt. Your credit will almost always suffer more from debt settlement than from bankruptcy. Debt settlement results in more negative items and late payments. Bankruptcy removes those items and leaves only the bankruptcy itself behind. Bankruptcy also offers a far quicker credit rebound.
Not only that, we do more than simply help you eliminate your debt. We will work with you to rebuild your credit score after bankruptcy! All of our clients receive free access to 7 Steps to a 720 Credit Score. If credit score is a concern, you should strongly consider bankruptcy over other options be sure to consider that when youre weighing bankruptcy or debt settlement.
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Which Type Of Bankruptcy Is Right For You
The idea of filing for bankruptcy is formidable. During your initial consultation, our seasoned attorney will work to ease any anxiety you may be feeling. Through a series of questions, we will be able to evaluate your financial situation and propose workable options to achieve your goals. Our objective is for you to be comfortable and understand the bankruptcy process, including the benefits and advantages of Chapter 7 and Chapter 13 bankruptcies.
Generally, Chapter 7 bankruptcy is for individuals with limited income, mostly unsecured debt, and without substantial assets, filing for Chapter 7 would be useful. Commonly referred to as liquidation bankruptcy, Chapter 7 is a relatively short proceeding allowing a debtor to eliminate a vast majority of their debt.
Chapter 13 bankruptcy is for individuals with substantially more income or who are filing to pay specific types of debt, such as mortgage arrears or back taxes. During our initial consultation, we will determine if filing for Chapter 13 satisfies your needs and helps you achieve your financial goals.
The heart of a Chapter 13 bankruptcy is the reorganization plan. The terms of your plan must adhere to several code provisions and address your debt.
Other Forms Of Bankruptcy:
- Chapter 9 used by municipalities, including cities, towns, taxing districts, school districts, etc., to reorganize.
- Chapter 12 provides debt relief for family farmers and fishermen.
- Chapter 15 If parties are involved from more than one country, this form of filing is required.
Client Reviews
I highly Recommend Gibson & Perkins. I have used their services for approximately 6 years now and been through a few cases together with very positive outcomes. Personally, I have used Paul Fellman and Walter Timby on those occasions. Both, as a team & separately these Attorneys were wonderful to work with and easily accessible to reach if I had any questions. Professionalism is the word that comes to mind to describe the firm, as a whole. Always completely prepared for any surprises that may pop up during a trial. They were well versed on all pertinent info pertaining to each case. As I client, I always felt I was an integral part of the team, not an after-thought, that had to be brought up to speed a half hour before the trial started. I could not recommend this firm and Mr. Fellman and Mr. Timby any higher. Maria Twining
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File For Chapter 7 11 Or 13 Bankruptcy
Scaringi Law’s full-service law firm includes a fully developed commercial law practice, that understands enforcement of creditors’ rights represents the ultimate test for any sales or loan agreement. For example, a security interest is only as good as its ability to stand up in bankruptcy court. To learn how our experience with the full range of creditors’ remedies can help your company weather tough economic conditions, contact us in any of our six Pennsylvania locations, including Harrisburg and Newport.
Why File For Bankruptcy
People wind up filing for bankruptcy for many reasons, often involving outside forces or unforeseen expenses: Medical debt and unexpected health care costs can quickly spiral out of control, credit card debt can accrue due to business expenses or needing to use a credit card during periods of unemployment and low cash flow, investments in the stock market, real estate or other financial vehicles might suffer due to a financial crisis, or a supply chain shutdown can cause debt to cascade in times of pandemic or due to oil price fluctuations. In any of these situations, a bankruptcy attorney can help you find the best course of action.
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Can Anyone File Bankruptcy
Anyone can file bankruptcy, but there are limitations regarding which form of bankruptcy is permissible. Qualifying for Chapter 7 requires a means test that evaluates income, debt levels, and income left over each month after paying basic obligations. Income over the median set by the court and monthly income that allows meaningful payments toward unsecured debt can disqualify filers from Chapter 7, which is generally the preferred form of bankruptcy due to the possibility of a full discharge. Anyone can file Chapter 13 bankruptcy, but the terms are less favorable. In most cases, some debts must be repaid following a successful filing. Chapter 13 is also more likely to result in asset forfeiture.
