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Philadelphia Bankruptcy Overview

Philadelphia Bankruptcy Lawyer Will Explain Your Options

Struggling With Overwhelming Debt? Pennsylvania Bankruptcy Law Firm Can Help

Before you file for bankruptcy in Philadelphia, you must first ascertain whether or not you really need to file. You can do this by examining your own unique financial situation in great detail.

The typical bankruptcy filer is often described as someone who is in fragile economic circumstances with large amounts of credit card debt and then faces some type of financial crisis: a job loss, debilitating injury, divorce, or large amounts of medical expenses not covered by insurance. This crisis usually results in mounting penalties and creates an insurmountable amount of debt that is impossible to repay.

Bankruptcy law is designed to help people in this type of situation, those who need to get a fresh financial start by making a clean break rather than spending the rest of their lives under the weight of debt they are unable to pay.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a relatively quick (usually several months) way to wipe out unsecured debt like credit card and medical debts. Most chapter 7 debtors have no available non-exempt property or equity by the time they file for bankruptcy relief, and what they do have must be given up to the trustee, who liquidates it and uses the proceeds to pay off creditors. Chapter 7 may be used only once every eight years, so it should be saved for use only when really necessary.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, or reorganization, is for people who have gotten behind on their secured debt payments (such as mortgage and car loans). A chapter 13 bankruptcy typically takes three to five years to complete, and instead of giving up property, the debtor repays a portion of their debts and agrees to live within a strict budget that is monitored closely by a bankruptcy trustee. If the filer is unable to make the required payments, the chapter 13 bankruptcy will be dismissed or converted into a chapter 7 bankruptcy.

If you're considering filing for bankruptcy in Philadelphia but are uncertain about what to do next, the experienced bankruptcy attorneys at Patricia M. Mayer, P.C. will give you the information you need to make a confident decision about the best debt relief solution for you. Contact our firm online or call 877-317-9857 to schedule a free initial consultation today.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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