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Chapter 7 Bankruptcy in Philadelphia

The most common question asked by Bankruptcy Law clients is “What is the difference between Chapter 7 Bankruptcy and Chapter 13 Bankruptcy?” A Chapter 7 Bankruptcy is an immediate discharge or wiping out of unsecured debts. Debts that are included in a Chapter 7 Bankruptcy include credit cards, medical bills, personal unsecured loans, timeshares, certain tax debts and more! It is very rare for a house or a car to be included in a Chapter 7 Bankruptcy except for very rare circumstances discussed below.

 Chapter 7 Bankruptcy in Philadelphia Case – Scenario 1

A Petitioner in a Chapter 7 Bankruptcy may choose to surrender their interest in a home, car or other secured debts that have become unaffordable due to loss of income or an unforeseen rising monthly payment. A Petitioner may also decide to surrender a house or car through bankruptcy because they do not have any equity in the secured debt.

For example, if one owns a home with a mortgage of $200,000, but the home is worth only $150,000, it may not be worth struggling on a monthly basis to meet the monthly mortgage payments, real estate tax and homeowner’ insurance obligations because the Petitioner has negative or no equity in the asset. A Chapter 7 Bankruptcy would allow the Petitioner to surrender their interest in the home and seek alternative housing for a lesser monthly payment therefore decreasing monthly living expenses and building savings at the same time!

Chapter 7 Bankruptcy in Philadelphia Case – Scenario 2

On the average, for every $10,000.00 of credit card debt, it costs $500.00 per month in minimum payments, which amounts to $6,000 per year. A Chapter 7 Bankruptcy would therefore erase the extraordinary monthly and yearly expense of carrying debt and increase a Petitioners monthly disposable income and potential savings.

Lastly, because the Petitioner in Chapter 7 Bankruptcy would no longer be carrying unsecured debt due to the discharge in Bankruptcy, it is very common for credit scores to rise. Yes, filing bankruptcy improves credit sores. Reason being that since a Petitioner in Chapter 7 Bankruptcy is no longer responsible for credit card and other debts with outstanding balances; they have a more positive debt to income ratio in the eyes of the credit reporting agencies and accordingly a rising credit score.

How can Sadek & Cooper Law Offices help you with your Chapter 7 Bankruptcy in Philadelphia

  • Over 4000 Satisfied Clients
  • We Answer ALL your Creditor Calls
  • Super Lawyers Listed
  • Free Initial Consultation
  • No More Credit Card Debt
  • No More Personal Loan Debt
  • No More Medical Bills, Collections and other debts!
  • Low Flat-Rate legal fees
  • Fast and Accurate Filing
  • Payment Plans Available
  • Convenient Locations
  • Be Debt Free!

The Philadelphia Chapter 7 bankruptcy lawyers at Sadek & Cooper Law Offices are dedicated to protecting your financial future

The bankruptcy lawyers at Sadek & Cooper Law Offices are dedicated to providing quality and cost effective legal guidance to clients who are faced with the difficult decision of declaring bankruptcy. We work closely with our clients in Philadelphia and the surrounding areas, including Delaware, Montgomery, Bucks, and Chester counties to make sure that bankruptcy is the best option for them.

If you have any questions regarding Chapter 7 Bankruptcy and your legal situation, call the Chapter 7 bankruptcy lawyers and attorneys at Sadek & Cooper Law Offices at (215) 995-2543. We offer a FREE and confidential consultation with one of our bankruptcy lawyers in our law offices to further discuss Chapter 7 Bankruptcy.

What Our Clients Have to Say

This is an excellent Law Office! I couldn’t sleep at night because my house was up for foreclosure and I was in serious credit card debt. I was working two jobs at the time and I just couldn’t take it anymore. My first meeting with Mr. Sadek was completely free. My bankruptcy petition was filed within weeks and now I’m off to a fresh start! I only have to work one job now and I still have my house! Filing for bankruptcy with Sadek & Cooper Law Offices, LLC was a painless and pleasant. Brad Sadek is awesome! He really helped me get back on my feet. He was by far the friendliest lawyer I have ever dealt with and he did an excellent job with my bankruptcy!”


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