Sadek Law Offices, LLC 2011 Year in Review

Posted on January 9, 2012 by Sadek Law

As the year 2011 comes to an end I, Brad J. Sadek, managing attorney, would like to extend thanks to our staff of attorneys and paralegals for another successful year.  Further, I would like to extend my gratitude to our clients whom we get the pleasure of providing legal assistance to.  As we enter our seventh year of practicing as Sadek Law Offices, LLC we look forward to practicing in Bankruptcy Law, Family Law, Real Estate Law and adding a Social Security Disability Law practice to best serve our clients needs.

Over the past year our practice has expanded by adding branch offices in Northeast Philadelphia and Allentown, Pennsylvania. By adding branch offices, we have expanded the geographic scope of our law practice while adding convenience to clients throughout the Eastern District of Pennsylvania.  From our branch offices we are able to meet with clients and perform the high degree of legal service that our clients deserve.

Lastly, in early 2011 we will be updating our website in effort to stay on the forefront of technology.  Although law does not change at a rapid pace, our small law firm is able to quickly adapt to the legal needs of our clients.  I can assure our readers and clients that the one thing that will never change is the commitment to providing excellent legal services.

In conclusion, I wish everyone a healthy and happy new year in 2012.

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Wage Garnishment Pennsylvania

Posted on December 12, 2011 by Sadek Law

Pennsylvania law only permits wage garnishment in very limited circumstances.  Under Pennsylvania law, an employee’s wages, salaries and commissions may be taken (garnished) to satisfy the following types of debts due and owing:

1. Judgments for child or spousal support,

2. Obligations relating to a final distribution in divorce,

3. Back rent on a residential lease,

4. PHEAA Student Loans,

5. Restitution for criminal matters, and

6. Certain Taxes.

Although there are only limited circumstances where a creditor may garnish wages, in Pennsylvania a judgment creditor may seek to garnish money in your bank account.  Meaning if one owes a credit card a judgment in the amount of $3,000.00 and has $1,000.00 deposited from their employer in the form of wages, the entire deposit may be subject to garnishment.  If one is facing a possible lawsuit or bank account garnishment in Pennsylvania it is important that they seek the advice of a lawyer

If there are any general questions or topics you would like to read about relating to bankruptcy law in the Eastern Pennsylvania region, you may contact the Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008 or 610-432-3111 or email brad@sadeklaw.com. Thank you.

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Reasons to file Chapter 13 Bankruptcy in Pennsylvania

Posted on November 28, 2011 by Sadek Law

A Chapter 13 bankruptcy, as previously discussed in blogs and on theprimary website, www.sadeklaw.com, is a repayment plan in bankruptcy.  The repayment plan is the most distinguishing characteristic of a Chapter 13 Bankruptcy Proceeding.  The repayment plan, generally, rather than being based on what is due and owing, with respect to unsecured debts, is based on affordability on an ongoing monthly basis.  There are several reasons why a person or married couple may file a Chapter 13 Bankruptcy, however, in my Pennsylvania Bankruptcy law firm, I see three most common situations.
1. Stay Foreclosure Foreclosure or Tax Sale of Real Property,
2. Repayment of debt based on non-exempt equity in real or personal property and
3. Repayment of Debt based on means testing disposable income.
A Chapter 13 Bankruptcy may be filed to stay mortgage foreclosure or tax sale up until the time the sheriff sale takes place.  In Chapter 13 bankruptcy an individual or a married couple would repay all mortgage arrears and/or tax deficiencies due and owing over a period of three to five years, depending on monthly disposable income.  The filing of a Chapter 13 Bankruptcy, by virtue of the automatic stay imputed under Section 362 of the US Bankruptcy Code, stays the foreclosure or tax sale.  Moreover, unsecured debt, including but not limited to credit cards, personal loans, utilities, judgments and medical bills are paid back based on affordability.  Sometimes Petitioners in Chapter 13 Bankruptcy pay nothing back to unsecured creditors.
The current federal exemption for equity in real property is $21,625.00, per person on the deed.  Meaning a couple whether filing jointly or not has a combined exemption of $43,250.00 for their personal residence.  For example, a couple with a mortgage of $100,000.00 and a house worth $143,250.00, would be deemed to have no non-exempt equity in their primary residence.  However, if the value of the house was higher, then the individual or couple would pay debts back only up to the non exempt equity in the subject primary residence.
Lastly, Chapter 13 Bankruptcy is supposed to be based on the Debtors’ best efforts to repay.  Accordingly, there are means testing figures, updated annually for inflation.  Such figures consider family size and reasonable and necessary expenses to determine, what amount, if anything needs to be paid towards debt on a regular and monthly basis through Chapter 13 Bankruptcy.  The lawyers at Sadek Law Offices are well versed in Pennsylvania means testing and will give an honest legal opinion regarding required payments and savings in Chapter 13 Bankruptcy.

If there are any general questions or topics you would like to read about relating to bankruptcy law in the Eastern Pennsylvania region, you may contact the Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008 or 610-432-3111 or email brad@sadeklaw.com. Thank you.

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New Bankruptcy Median Income Standards

Posted on November 16, 2011 by Sadek Law

On November 10, 2011, new median income standards for Pennsylvania were released.  These figures are important because if the household income, based on family size is lower than the median income, there is no presumption of abuse in a Chapter 7 Bankruptcy.  Further, depending on the situation a Petitioner may be eligible for a three year plan in Chapter 13 Bankruptcy.  Although the following median income standards are very important there are numerous other factors needed to determine whether an individual or marries couple qualifies for bankruptcy protection, and if so, what Chapter of the Bankruptcy Code would be most beneficial. 

Pennsylvania Median Incomes:

One person Household Median Income: $45,092

Two Person Household: $53,091

Three Person Household: $66,487

Four Person Household: $76,682

If there are any general questions or topics you would like to read about relating to bankruptcy law in the Eastern Pennsylvania region, you may contact the Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008 or 610-432-3111 or email brad@sadeklaw.com. Thank you.

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Protection for Federal Income Benefits

Posted on November 9, 2011 by Sadek Law

Generally, a Judgment creditor is able to freeze a bank account and collect funds up to the amount of the judgment debt.  However, funds derived from certain sources, such as Social Security Disability, Social Security Income and Veterans Benefits are exempt from collection by Judgment Creditors.  Now, the onus is on the bank to determine the sourse of the funds and determine whether the funds are exempt from collection.  This saves the account holder the hassle and time of objecting to the collection of the subject funds.  The protection of the Federal Benefits is contingent upon having the funds electronically deposited and the funds must be deposited within the past two months to be exempt from collection.  For more information on protecting your income, please contact Sadek Law Offices, LLC at 215-545-0008. 

If there are any general questions or topics you would like to read about relating to bankruptcy law in the Eastern Pennsylvania region, you may contact the Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008 or 610-432-3111 or email brad@sadeklaw.com. Thank you.

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Chapter 13 Hardship Discharge

Posted on September 19, 2011 by Sadek Law

A hardship discharge in bankruptcy is governed by 11 USC Section 1328(b).  A hardship discharge comes into play after a Chapter 13 bankruptcy plan has already been confirmed by the Bankruptcy Court and at some point during the course of the repayment plan the Debtor or Debtors face an unforeseen unfortunate circumstance.  A job loss or health problem are the most prevalent reasons for petitioning the Bankruptcy Court for a hardship discharge in bankruptcy.  In order to receive a hardship discharge the following elements must be met:

1. The Debtors(s) has experienced a circumstance beyond his or her control that makes it impossible to continue to make Chapter 13 payments,

2. The payments made into the plan are at least the total amount that the creditors would have received through a Chapter 7 Bankruptcy, and

3. It is not feasible to otherwise modify and continue paying towards the confirmed Chapter 13 payment plan. 

If there are any general questions or topics you would like to read about relating to bankruptcy law in the Eastern Pennsylvania region, you may contact the Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008 or 610-432-3111 or email brad@sadeklaw.com. Thank you.

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Cramming Down and Lien Stripping in Chapter 13 Bankruptcy

Posted on August 8, 2011 by Sadek Law

Section 506 of the US Bankruptcy Code allows for certain secured debts to be altered based on the value of the underlying collateral. This is referred to as “cramming down” or “stripping off” a secured loan. An example of using 506 to “cram down” a loan would be where the debtor has a car they purchased for $15,000.00. However, at the time of filing, the fair market value of the car is only $10,000.00. They still owe $12,000.00 on the car. Under the 506 cram down, the secured part of the debt is only $10,000.00 and the rest is treated as unsecured in the Chapter 13 plan. For a car, this can only be done on vehicles purchased more than 910 days (about 2.5 years) prior to the bankruptcy petition is filed. On other secured items, there is no such limitation with the exception of real property.

There no longer is an ability to “cram down” a debt voluntarily secured against your home. This is where “lien stripping” comes into play. If your home is now only worth $150,000.00 and your first mortgaged loan payoff is $155,000.00, then any other debt secured against the house is considered to be wholly “under water”. So if there is a second mortgage such as a home equity line of credit, that is completely “under water” in terms of equity in you home, then under 506 it can be treated as wholly unsecured through the plan.

If there are any general questions or topics you would like to read about relating to bankruptcy law in the Eastern Pennsylvania region, you may contact the Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008 or 610-432-3111 or email brad@sadeklaw.com. Thank you.

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Chapter 13 Bankruptcy Debt Limits

Posted on July 19, 2011 by Sadek Law

The amount of debt owed by a Chapter 13 Debtor in Bankruptcy is limited by 11 USC Section 109(e).  Individuals with debt in excess of the limits do not qualify for a Chapter 13 Bankruptcy, also referred to as a reorganization of debts.  Adjustments to Section 109(e) are made every three years and are adjusted for inflation in accordance with Section 104(a).  The debt limit last increased from on April 1, 2010 from $336,900 to $360,475 for unsecured debt and from $1,010,650 to $1,081,400 for secured debt.  The higher the debt limits, more individuals will qulaify for a Chapter 13 bankruptcy where they can more easily strip a wholly unsecured junior lien on depreciated real estate.  Individuals carrying debt in excess of the Chapter 13 debt limits will still be eligible to file a Chapter 11 bankruptcy, which is typically reserved for incorporated entities. 

If there are any general questions or topics you would like to read about relating to bankruptcy law in the Eastern Pennsylvania region, you may contact the Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008 or 610-432-3111 or email brad@sadeklaw.com. Thank you.

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Creditor Objections in Bankruptcy Filing

Posted on June 30, 2011 by Sadek Law

Many of the bankruptcy cases and referrals that Sadek Law Offices, LLC handles involves litigation ancillary to a bankruptcy filing.  The litigation is usually commenced by a bankruptcy creditor filing a motion for relief from the automatic stay imputed by virtue of section 362 of the Bankruptcy code.

It is statutory law in Bankruptcy law that debt(s) which are derived from fraud, false pretenses or false representations may not be discharged in a bankruptcy proceeding.  Creditors rely heavily on this statute to object to a discharge in bankruptcy and seek a motion for relief from the automatic stay.

Although a motion for relief and/or an objection to discharge can be a powerful tool for a creditor, our law office has been very successful in overcoming such motions and related creditor motions for the benefit of our clients.  In the event that you have a possible more difficult case due to a potential creditor objection, please contact our office for a free consultation regarding your legal matter.

If there are any general questions or topics you would like to read about relating to bankruptcy law in the Eastern Pennsylvania region, you may contact the Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008 or 610-432-3111 or email brad@sadeklaw.com. Thank you.

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Northeast Philadelphia Bankruptcy Lawyer

Posted on May 9, 2011 by Sadek Law

Due to increasing demand for our legal services, Sadek Law Offices, LLC on June 1st, 2011 will be opening our Northeast Philadelphia Bankruptcy Law Office.  Clients will enjoy the same great personal service, low legal fees and monthly payment plans, with the added convenience of on-site parking and flexible appointments.  From this location Sadek Law Offices, LLC will handle Chapter 7, 13 and 11 Bankruptcies and Divorce cases as well. The Northeast Philadelphia Bankruptcy law office is located at Woodward Street and Roosevelt Boulevard , just one block South of Welsh Road and the Boulevard.  From this location we will be able to serve the residents of Northeast Philadelphia in the following neighborhoods:

  • Holmesburg
  • Lexington
  • Frankford
  • Mayfair
  • Tacony
  • Morrell Park
  • Pennypack
  • Castor Gardens
  • Bells Corner
  • Rhawnhurst
  • Burholme
  • Oxford Circle
  • Fox Chase
  • Lawndale
  • Crescentville
  • Somerton
  • Bustleton
  • Krewstown
  • Philmont Heights
  • Parkwood
  • Normandy

To schedule a free and confidential consultation with a bankruptcy lawyer regarding your legal issue please call our Northeast Philadelphia law office at 215-545-0008.  Or email us at info@sadeklaw.com.  We look forward to helping you in these difficult times.   

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