With so many different forms of bankruptcy and bankruptcy codes, many people seeking bankruptcy protection quickly get overwhelmed with questions. What is the difference between Chapter 7 and Chapter 13 bankruptcy? Can bankruptcy stop foreclosure? What do I qualify for, and what happens when I declare bankruptcy?
My knowledge gained over 20 years as a bankruptcy attorney can help you make sense of the Bankruptcy Code so that you can make informed decisions when filing for personal or business bankruptcy.
Chapter 7 Bankruptcy
When you file for Chapter 7 bankruptcy, you discharge all your debts. For those who qualify under income guidelines — determined by a simple means test — filing Chapter 7 bankruptcy can:
- Eliminate most unsecured debt such as credit card balances and medical bills
- Dependably stop creditor harassment and prevent wage garnishments, collection of judgments, and other creditor actions against you
- Enact property exemptions in place under the law in order to enable you to file bankruptcy while keeping your home, car, and other assets
Do not worry that you will have to give up everything you own. Qualified retirement accounts are exempt, for example, and you are entitled to keep significant equity in your home. Most people who file Chapter 7 bankruptcy do not have substantial non-exempt assets or property, and it is not likely that you will either.
Chpater 13 Bankruptcy
A Chapter 13 bankruptcy is often the best option for people who have fallen behind on payments and want to save a home or car. Substantial unsecured debt can usually be discharged, enabling regained focus on priority payments such as the mortgage. We are also familiar with “lien-stripping” strategies for eliminating second mortgages not supported by the current market value of the home.
While Chapter 13 bankruptcy plans involve important obligations you need to fully grasp before you file, understanding the process may open new doors for you. Chapter 13 offers many people unique benefits for dealing with:
- Reaffirmations and restructuring of payments over time in order to catch up on a mortgage, auto loan or other secured debt
- Non-dischargeable tax debts and arrearages on student loans or family support obligations
- Debts assumed as part of a divorce
Compassionate Debt Relief Services for Washington County Area Residents
I have seen the toll financial problems can take on a person’s quality of life. I understand the stress that comes with mounting debts, harassing calls from creditors and the threat of losing your business or having your home foreclosed on. That’s why as a Pennsylvania bankruptcy attorney I am committed to offering dedicated and compassionate counsel to individuals, families, and business owners throughout the greater Philadelphia area. Bankruptcy doesn’t have to be a daunting process. We’re ready to stand by your side.
Consult with an experience Montgomery County Bankruptcy Lawyer
To schedule a time to meet with me for personal or business bankruptcy, contact my Fort Washington, Pennsylvania office at 267-513-1777. I proudly serve individuals, families, and businesses in Fort Washington and in surrounding communities.
As a a debt relief agency. I help people and businesses file for bankruptcy relief under the Bankruptcy Code.
