Your Bankruptcy Attorney in Philadelphia
If you are overwhelmed by bills, or if your assets are threatened by creditors, bankruptcy may be a solution worth considering. Bankruptcy eliminates various unsecured debts such as credit card debt, medical bills, old tax bills, and just about any debt that is not tied down to an asset such as a house or a car.
If you are seeking competent counsel, look no further than our Bankruptcy Attorney, Philadelphia!
You should be aware that bankruptcy does not eliminate all debts. Some examples of nondischargeable debts are student loans, recent tax arrears, child support or alimony, personal injury judgments where alcohol was a contributing factor, or any fines or penalties due to the government, whether civil or criminal in nature.
House or no house?
The main fork in the road when it comes to filing, as any competent Bankruptcy Lawyer in Philadelphia will tell you, is whether you own a home or not. If you own a house that you want to keep, you will likely want to file for Chapter 13. That will allow you to keep the house and catch up any back payments, but only if you are able to resume your mortgage payments. If you want to keep your house, you must always be prepared to pay the mortgage.
If you do not have a house or any other significant assets, and you qualify by income, you will likely opt for Chapter 7. That is called a liquidation, and it makes sense for individuals who have a low income and little or no assets. You can have a house and still file under Chapter 7 if you have no equity in the house, or if you plan to surrender it to the Trustee. Please note that this is merely a guide. The decision to file, and under what chapter, should only be made after an in-person consultation with a competent Bankruptcy Attorney, Philadelphia!
Possible Negative Consequences
Bankruptcy will stay on your credit report for several years, and it will affect your ability to get loans and credit cards in the near future. The most often quoted figure for how long it will stay on your credit report is ten years for Chapter 7 and seven years for Chapter 13. However, with the help of our credit managers, we are able to eliminate bankruptcy from your credit report earlier.
We offer free consultations, so we are happy to answer your questions without obligations. Call us today.
This content was written on behalf of Greg Prosmushkin.