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I'm here to answer any questions you may have about my firm or my services. Weekend and evening hours are available by appointment. I'm licensed in both the states of Pennsylvania and New Jersey.




What is bankruptcy?

I’m here to answer any questions you may have about my firm or my services. Weekend and evening hours are available by appointment. I’m licensed in both the states of Pennsylvania and New Jersey.

Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or organize a plan to repay them.

What are the advantages of bankruptcy?

Once discharged through bankruptcy, your debts are erased. In other words, you are no longer responsible for paying them.

How long do I have to wait to rebuild my credit?

You can rebuild your credit immediately with a secured loan or credit card. In fact, you can even obtain these items while going through the bankruptcy process.

How do I know what type of bankruptcy to file?

Choosing which chapter of bankruptcy is best for you depends on what kind of debts you have, whether you are behind on secured debts, and whether you have the regular income necessary to fund a Chapter 13 Reorganization Plan.

Bankruptcy Myths and Truths

MYTH: Bankruptcy will ruin your credit.

Creditors, themselves, love to spread misinformation about how Bankruptcy is the worst thing you can do, it will ruin your credit and you will not be able to obtain credit for over 10 years.

TRUTH: A Chapter 7 Bankruptcy can actually improve your credit.

While a Bankruptcy will be on your credit report for 10 years, most people obtain some form of credit within only a few months of filing a Bankruptcy. Moreover, if you have a disproportionate income to debt ratio or you are already delinquent on your debt, your credit score is already suffering. Every month, your creditors are reporting that you are late: 30 days, 60 days, 90 days and on and on. Even if you are paying, but always over 30 days, your credit score continues to suffer each month.

The moment you file your Bankruptcy case, your creditors are strictly forbidden from continuing to report negatively on your credit report. This “stops the bleeding” of your credit score and allows your credit to breathe. This, alone, can raise your credit score.

Many people obtain credit within just a few months of filing a Bankruptcy. However, when possible, I do recommend waiting a few months longer for your credit score to really start to rise. A vehicle loan is probably one of the easiest forms of credit to obtain after a Chapter 7 Bankruptcy, but, remember, you will still be a credit risk. Your interest rate will be higher, so waiting just a few extra months will likely get you a better rate.

You may also qualify for a credit card with a low credit limit, usually around a $300.00 limit for starters. As you make regular payments, those credit limits will start to increase. But, use extreme caution so as not get yourself back into trouble again.

MYTH: Forget buying a home if you file for Bankruptcy.

TRUTH: Many people purchase a home within 3 years after a Chapter 7 Discharge.

While you will need to show sufficient income and there may be additional waiting periods if you surrendered a home to foreclosure, you can be a home owner once again or maybe even for the first time.

MYTH: You are only permitted one Bankruptcy in your lifetime.

While we certainly don’t encourage serial filing, we recognize that sometimes lightning does strike twice for some people. You could lose your job and need to file Bankruptcy, then a few years later, you could be faced with another job loss or other financial setback.

TRUTH: There are times when a 2nd or 3rd Bankruptcy may become necessary and is possible under Bankruptcy Law.

However, the timing and type of Bankruptcy relief that is available to an individual does vary. If you filed a Chapter 7 within the last 8 years, you would not be entitled to relief under Chapter 7. However, a Chapter 13 could be a viable option to obtain relief. It is important to discuss these options with an experienced Bankruptcy professional. Timing is everything.

MYTH: You will lose your home, your car and other personal property.

TRUTH: You will keep all your property in a typical Chapter 7 Bankruptcy.

In most cases, the only thing you will lose is the burdensome debt. However, it is important to fully disclose all assets and obtain a detailed analysis prior to filing.


Law Offices of Michele Perez Capilato

500 Office Center Dr.
Suite 400
Fort Washington, PA 19034
Offices also located in Philadelphia, PA & Pottstown , PA
Phone: 267-513-1777

Law Office of Michele Perez Capilato

We are a debt relief agency. We help people file for bankruptcy release under the bankruptcy code.

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