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When considering filing for a Reorganization of debt under Chapter 13 Bankruptcy Protection, Petitioner’s should be aware of the three categories of debt included; Priority, Secured and Unsecured debts.

  1. Priority debts in the Chapter 13 Bankruptcy include costs and fees associated with the Chapter 13 filing, some tax debts and domestic support obligations.
  2.  Secured Debts are debts due and owing on a mortgage or car loan and are otherwise known as “collateralized debt.” It is very common for a Petitioner to utilize the automatic stay imputed in a bankruptcy filing to stop the foreclosure or tax sale of a home or a repossession of an automobile. The Chapter 13 Bankruptcy Plan shall provide for payment of any delinquency and/or principal balance on the secured asset (home or automobile).
  3. Unsecured Debts are the last to be paid in a Chapter 13 Bankruptcy Reorganization. The payment of unsecured debts is based on the Petitioner’s affordability. Unsecured debts, include credit cards, personal loans, deficiencies, most judgments, medical bills and many other debts. One of the greatest benefits of Chapter 13 bankruptcy is the ability for a Petitioner to minimize, based on affordability, monthly payments to unsecured creditors.

To speak to an attorney at Sadek and Cooper Law Offices regarding your situation and the best options available to you, please contact one of our offices listed below.

  • CENTER CITY PHILADELPHIA: 1315 Walnut Street, #502 Phila., PA 19107 215-545-0008
  • NORTHEAST PHILADELPHIA: 2375 Woodward Street, #105 Phila., PA 19115 215-545-0009
  • DELAWARE COUNTY OFFICE: 1489 Baltimore Pike, #218, Springfield, PA 19064 610-432-3111
  • BUCKS COUNTY OFFICE: 1609 Woodbourne Road, Suite 203B, Levittown, PA 19057 215-545-1055
  • NEW JERSEY OFFICE: 302 Washington Avenue, Suite 101 West, Moorestown, NJ 08057 215-545-0008