(215) 995-2543

Philadelphia Debt Settlement Lawyer

Bankruptcy has helped millions of people get relief from debt and regain financial control of their lives. However, bankruptcy isn’t always right for everyone. If you need help getting your debt under control, but bankruptcy isn’t an option, debt settlement might be a useful alternative. Serving Philadelphia, Bucks, and Delaware Counties, the Pennsylvania debt settlement lawyers of Sadek & Cooper Law Offices can help you decide whether debt settlement is right for you, and if so, guide you through the process to help you efficiently achieve a better outcome.

Our respected team of debt lawyers and bankruptcy attorneys has years of experience helping Philadelphians manage their finances and get fresh starts. Our wealth of knowledge and extensive experience handling Chapter 7 bankruptcy, Chapter 13 bankruptcy, and debt settlement cases in Pennsylvania enables us to conduct a nuanced assessment of which strategy is best suited to your circumstances and objectives. When you are represented by Sadek & Cooper Law Offices, you’ll have an advocate who will be there to answer your questions, manage your documentation, advise you of your options, and protect your best interests throughout the debt negotiation process with your creditors.

Start getting the debt relief you need to eliminate stress and achieve your financial goals. For a free and completely confidential legal consultation, contact Sadek & Cooper Law Offices at (215) 995-2543 today.

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What’s the Difference Between Debt Settlement, Debt Consolidation, and Bankruptcy?

Debt settlement, debt consolidation, and personal bankruptcy are three approaches to debt which are frequently confused with one another. However, it is critical for debtors to be aware of the significant distinctions between these methods of addressing debt.

Debt settlement is the process of negotiating a payment to your creditors for less than the amount that you actually owe. For instance, if you owe a creditor $20,000, the goal of debt settlement would be to negotiate the debt down to a lower, more manageable payment, such as $13,000. Because debtors are generally expected to begin making settlement payments almost right away, it is critical to approach the debt settlement process with sufficient funds to accommodate the settlement payments.

The term “debt consolidation” sounds similar to debt settlement, but follows a completely different process. Instead of paying the creditor a reduced amount as he or she would following debt settlement negotiations, the debtor makes monthly payments to a third party, such as a debt consolidation company, which then takes a fee and makes minimum monthly payments on the debtor’s behalf.

Bankruptcy works differently depending on whether the debtor files Chapter 7 (“straight bankruptcy,” “ordinary bankruptcy,” “liquidation bankruptcy”) or Chapter 13 (“reorganization bankruptcy,” “wage earner’s plan”). However, both chapters are different from debt settlement and debt consolidation.

In Chapter 7 bankruptcy, a trustee is authorized to sell some of the debtor’s property to creditors. However, debtors can usually keep most or all their property, either because the property can be retained using federal or Pennsylvania bankruptcy exemptions, or because the trustee decides not to sell it due to low value. If the debtor obeys bankruptcy regulations and court rules, liability for most of his or her debts will be wiped out, including credit card, medical debt, business debt, and debt arising from personal loans. That means the filer is no longer responsible for paying those debts.

In Chapter 13 bankruptcy, the debtor keeps all of his or her property. In exchange, the debtor is required to make monthly payments to a trustee, who distributes the funds amongst creditors. This process continues for either three or five years, depending on the terms of the debtor’s court-approved bankruptcy plan, called the “reorganization plan.” This gives the debtor an opportunity to prevent foreclosure and repossession. Additionally, many debts can be discharged (eliminated) in Chapter 13, including certain debts which are not dischargeable in Chapter 7.

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Philadelphia Debt Settlement Attorneys Serving Bucks and Delaware Counties

If you’re struggling to keep up with monthly bills, feel overwhelmed by debt collectors, or find yourself worrying about foreclosure proceedings, it’s time to take action and get financial relief. However, it’s not in your best interests to initiate the debt settlement process or bankruptcy process without legal assistance from a knowledgeable and experienced debt attorney who possesses a strong understanding of bankruptcy laws, debt negotiation strategies, and debtors’ legal rights. If you approach the bankruptcy or debt settlement process without help from an attorney, it is easy to make errors or overlook technicalities that have serious repercussions for your financial outcome.

Don’t go through the debt settlement process alone. Get experienced, efficient, effective representation from Sadek & Cooper Law Offices. Our debt settlement and bankruptcy law firm helps individual debtors, married couples, and business owners throughout Philadelphia, Bucks, and Delaware Counties, including Ardmore, Chester, Croydon, Drexel Hill, Levittown, and more. For a free debt settlement consultation, contact our law offices at (215) 995-2543 today.

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