Montgomery County Chapter 13 Bankruptcy Attorney
Under the right set of circumstances, Chapter 13 bankruptcy is a pragmatic, cost-effective financial solution to unmanageable debt arising from credit card bills, hospital bills, and other common sources of debt in Pennsylvania households. Chapter 13 allows filers to keep their property by making slow and steady repayments, which could empower you to save your home from foreclosure or prevent your business from collapsing.
If you are a resident of Montgomery County, and you have been struggling to keep your level of debt under control, Chapter 13 bankruptcy could be an efficient strategy for addressing your debt head-on while protecting your assets and property. However, the Chapter 13 bankruptcy process can be highly complex from both a legal and financial standpoint. If you are thinking about declaring Chapter 13 bankruptcy in Pennsylvania, make sure that your best interests will be vigilantly protected throughout the process by a skilled, knowledgeable, and highly experienced Chapter 13 attorney in Montgomery County.
To learn more about whether Chapter 13 bankruptcy could be right for you in a free and confidential legal consultation, contact Sadek & Cooper Law Offices at (215) 995-2543 today.
What is Chapter 13 Bankruptcy (Reorganization)?
Chapter 13 bankruptcy is a common form of consumer bankruptcy sometimes described as “reorganization” or a “wage earner’s plan.” The general premise of Chapter 13 is that the filer proposes a three- to five-year plan to gradually repay some of his or her debts.
If the filer is able to stick with the plan and bring it to successful completion, the bankruptcy court will discharge the case, meaning the filer will no longer be considered liable for the payment of the remaining debts addressed by the repayment plan. If doing so becomes necessary, it may be possible to convert the Chapter 13 to a Chapter 7 bankruptcy.
Chapter 13 vs. Chapter 7: What’s the Difference?
Along with Chapter 13 bankruptcy, Chapter 7 is another common type of consumer bankruptcy in Montgomery County. While both types of bankruptcy seek to provide debt relief for the filer, there are some considerable differences between how these chapters of bankruptcy are structured.
Chapter 7 is also called “liquidation,” because a court-appointed trustee has the authority to sell off the debtor’s non-exempt property in order to satisfy the filer’s debts. In many cases, the process is over in as little as four to six months.
Chapter 13 takes longer to complete, but carries with it several advantages. Because debtors work to repay their creditors through the Chapter 13 reorganization plan, they are generally able to keep more of their property. Further, unlike Chapter 7, Chapter 13 gives filers the opportunity to save their homes from foreclosure by catching up on missed mortgage payments.
Additionally, the length of a Chapter 13 case becomes an advantage with regard to the automatic stay, a court order that freezes collection actions. The automatic stay typically remains in effect throughout the entirety of the bankruptcy case, which means that collection actions will be halted for as long as five years during Chapter 13 proceedings.
Which Debts Are Dischargeable in Chapter 13?
In Chapter 13 bankruptcy, the filer’s debts are organized into several categories which prioritize the debts and dictate the schedule on which they should be paid and to what extent. In short, the plan of reorganization acts like a financial blueprint the filer will follow for the next three to five years.
One of the ways debt can be categorized in Chapter 13 is as dischargeable debt or non-dischargeable debt. If a debt is non-dischargeable, it means it will not be impacted by the bankruptcy. However, many debts are dischargeable in Chapter 13. If a debt is dischargeable, it means the filer will be relieved of liability for such debt when the case is discharged. In other words, a dischargeable debt is a debt which can be wiped out by bankruptcy.
What Debts Does Chapter 13 Eliminate?
Numerous types of debt are dischargeable in a Chapter 13 bankruptcy case. Dischargeable debt in Chapter 13 includes, but is not limited to, debt related to:
- Credit Cards
- Medical Bills
- Personal Loans
- Business Debt
Many people are surprised to learn that more debts can be discharged under Chapter 13 than under Chapter 7. For example, certain debts arising from divorce settlements are dischargeable in Chapter 13, but not Chapter 7. Generally speaking, neither chapter of bankruptcy permits the filer to eliminate debts pertaining to alimony, child support, or student loans.
Montgomery County Chapter 13 Bankruptcy Lawyer Serving Norristown, PA
When you need a thorough, efficient, and detail-oriented Chapter 13 bankruptcy attorney in Montgomery County, turn to Sadek & Cooper Law Offices for comprehensive support and skilled representation. Our Pennsylvania Chapter 13 attorneys represent clients throughout all corners of Montgomery County, including but not limited to Ambler, Ardmore, Audubon, Blue Bell, Conshohocken, Glenside, Harleysville, Hatboro, Horsham, King of Prussia, Kulpsville, Lansdale, Norristown, Plymouth Meeting, Pottstown, Sanatoga, Souderton, and Willow Grove.
Whether you intend to file individually, plan to file Chapter 13 jointly with your spouse, or simply have questions about declaring Chapter 13, Chapter 7, or possible alternatives to bankruptcy, the friendly and knowledgeable legal team at Sadek & Cooper Law Offices is here to provide prompt assistance. For a free legal consultation about filing for Chapter 13 bankruptcy in Montgomery County, contact our law offices at (215) 995-2543 right away.