What Additional Debt Eliminating Powers Can Bankruptcy Provide?

What Additional Debt Eliminating Powers Can Bankruptcy Provide?

Most people probably already know that bankruptcy is one of the most effective means of eliminating excess debt. For individuals, Chapter 7 bankruptcy is often the fastest way to eliminate debt and achieve a fresh financial start. Similarly, Chapter 13 bankruptcy can allow individuals to resolve and eliminate debts while protecting their property. For business owners, a Chapter 11 reorganization can often be used as a tool to restructure and reorganize finances and debts. Regardless of the form of bankruptcy you may elect to utilize, bankruptcy provides many tools and powers that comprise and supplement its ability to handle debt.  

A Philadelphia bankruptcy attorney of Sadek & Cooper believes in a strategic approach to all debt situations. When you work with a Sadek & Cooper attorney, you can expect a tactical approach to bankruptcy that leverages the various powers authorized by the bankruptcy code to improve the likelihood that all of your debt and other financial concerns will be fully addressed. To schedule a free and confidential bankruptcy consultation, call 215-545-0008 today or contact us online.

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Bankruptcy’s Avoidance Powers can be used to Recapture Assets

In some instances, an individual or a company’s finances may seem relatively stable one day only for the bottom to drop out days or weeks later. Transactions made in the days or weeks prior to the incident may have seemed innocuous at the time, but following the downturn these same transactions may be viewed as unwise or as unfairly favoring certain creditors. However, the strategic use of bankruptcy’s avoidance powers can allow an individual or entity to recapture certain assets. While the exact specifics regarding the exercise of avoidance powers will vary based on the circumstances, many transactions conducted within 90 days of the bankruptcy can be unwound. The recovered assets can then be used to satisfy debts and obligations held by creditors.

Bankruptcy’s avoidance powers can also be utilized to avoid certain contracts and obligations. In particular, bankruptcy’s avoidance powers often authorizes the ability to affirm or reject executory contracts and leases. Executory contracts are contracts under which both parties are required to fulfill material conditions. The bankruptcy filer may choose to affirm, reject, or even assign contracts.  However, there are certain conditions and caveats that apply to all of these abilities that are best explained in the context of the relevant factual scenario.

Chapter 13 Bankruptcy Can be Used to Strip Liens and Junior Mortgages

For individuals holding debt predominately comprised of secured debt – obligations that are backed by collateral in the form of property or assets – Chapter 13 bankruptcy provides for a number of potentially useful powers. For instance, the lien stripping power of Chapter 13 can permit a taxpayer to convert certain secured loans lacking adequate property to unsecured obligations. Converting these loans to unsecured status means that they are no longer priority debts and makes them more likely to be discharged at the close of the process.

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All Chapters of the Bankruptcy Code Protect Against Creditor Collection Attempts

One of the most common request our bankruptcy lawyers receive from potential clients is to make the creditor calls and bill collector calls stop. The good news is that all forms of bankruptcy will start an immediate injunction that prohibits creditors from engaging in most collection attempts or activities. In fact, in many situations where a creditor continues to hound a bankruptcy filer, damages for violations of the Federal Debt Collection Practices Act (FDCPA) are available. However, the automatic stay’s relief is only temporary in nature. If an individual wants to stop creditor collection calls once and for all, he or she will still need to proceed through the bankruptcy process and receive a discharge of debt. Thankfully, the automatic stay provides a much needed respite from creditor harassment while you settle your debts under the watchful eye of a federal bankruptcy court.

Strategic Philadelphia Bankruptcy Lawyers Can Help You Get a Fresh Financial Start

If you are considering bankruptcy, the Bucks County Chapter 7 and Chapter 13 bankruptcy lawyers of Sadek & Cooper can help you leverage these and other powerful legal tools. Our attorneys approach each and every matter strategically and fully consider the unique circumstances and scenarios before providing advice. To schedule a free and confidential consultation with our legal team, please call 215-545-0008 or contact us online.

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SEEWHAT OUR CLIENTS ARE SAYING

Thomas Wright
Thomas Wright
15:09 24 Apr 18
Sadek and Cooper Law did a great job on my bankruptcy case. I really appreciate their assistant. Thank you
Kelly McKenna
Kelly McKenna
11:57 19 Apr 18
This form - specifically Yoninah Orenstein and Patrick Cooper are PHENOMENAL. They were great to work with, very fair with legal fees, and successful in getting an excellent settlement for my divorce (short term marriage
Dessiana Cruz
Dessiana Cruz
13:11 04 Apr 18
I was nervous about bankruptcy, but from the moment I stepped in your office I felt at ease. This process was so easy with your help, that yesterday I was talking to my coworkers about it and recommending your firm to them. You make something that’s scary seem easy and I thank you so much for helping me!
Valerie Nesbitt
Valerie Nesbitt
14:51 03 Apr 18
Sadek and Cooper have been excellent. Everyone has been extremely helpful and patient. The lawyers I have worked with, Matt and Brad, are extremely knowledgeable. I felt very comfortable with them handling my case.
Marlena Lucas
Marlena Lucas
16:08 02 Apr 18
Very simple. Any time I had questions, they were answered quickly. The lawyers are just great. Just a fast painless process.
James Smith Sr
James Smith Sr
13:19 14 Mar 18
Everything has been great. Really awesome job with my case... You and your staff have done a perfect job in my opinion.
Michkel Davis
Michkel Davis
17:02 09 Mar 18
Mr. Sadek was the best and most thorough lawyer I’ve ever met. He’s very human and caring about our case. His whole staff is great too. Highly recommend...
Tamika Richardson
Tamika Richardson
14:56 01 Mar 18
My bankruptcy went very smoothly with your firm. No issues. You are all very nice. That’s why I recommend my sister to your firm and your now helping her too! Thanks again.
Geraldine Ross
Geraldine Ross
14:14 28 Feb 18
This is an Excellent firm to work with; my questions were answered in a timely manner and I felt very supportive in handling my bankruptcy. I would highly recommend this firm to others who have found themselves in a position like mine.
Lavern Baker
Lavern Baker
17:03 23 Feb 18
You are all super lawyers. Brad and Matt made me feel comfortable. Every one in your office so nice and just made it easy. You’re the best!
peter b
peter b
19:42 21 Feb 18
Thank you, Sadek and Cooper Law offices for your dedication on my behalf. I appreciate Matthew and Patrick and your staff and all that everyone did to support me in this legal matter. You took an embarrassing, sad experience, for me, and turned it into a successful solution without all the emotional pain expected. After dealing with a loan modification company for over eighteen months without going to an attorney first that is the biggest mistake anyone can make. The Modification Companies set out to sell you lies, broken promises and dilute the homeowner's assets with no knowledge of any kind of law. I can't stress enough stay away from Modification companies, as a Military Veteran and family man, protect you or your family best interest. Go directly to Sadek and Copper you will not regret it! This firm moves with Super speed and diligence protecting you and your family's the entire process, even after watching some of these other attorneys in the courtroom appearing to mishandled their clients’ cases before the Trustee. You made it easy and I’m finally getting my financial life back on track! Thank you for your prompt replies to me, your clear information and preparation needed when at the courthouse. I would of course recommend you to others and I am glad you were the one who had my case. Kind genuine law firm who treats you like family. God bless you all and I pray for your continued success in your field of expertise. This firm is Super Lawyers for a reason. They are the best at what they do! Pete
Doug Tinlin
Doug Tinlin
06:55 15 Feb 18
Brad Sadek gave me hope when he decided to handle my mortgage for enclosure defense. I had exactly 10 days left of the 30 days ultimatum given me, but he was able to bargain for an extra 30 days for me to pay up. That duration turned out just right.
Jacinth Jacinth
Jacinth Jacinth
16:07 31 Jan 18
Excellent service. Brad and Matt were outstanding and friendly. They helped me through this. I’ve never met attorneys like these. Thank you!
julie njoku
julie njoku
12:29 24 Jan 18
Brad Sadek is excellent!. He understands and he's fair. You feel like you have someone fighting for you. The staff is friendly, professional, and courteous. These guys are the best at what they do !
Owen Black
Owen Black
20:14 09 Jan 18
Thanks for the great service! I would recommend this firm highly. Throughout the years I have been helped by this firm greatly and very much appreciated.
Steven Rychalsky
Steven Rychalsky
15:30 09 Jan 18
Sadek and Cooper law office was a wonderful experience to work with. Bankruptcy is a difficult experience but they helped with the stress so much and made it easy. I would recommend Sadek and copper too anyone.
Chris Kourelias
Chris Kourelias
19:09 28 Dec 17
Working with both Brad & Matthew was a pleasure. Both gentlemen are extremely knowledgeable and helpful in providing me the right assistance needed to make the correct decision to benefit me in the long run. I would recommend both candidates to anyone looking for assistance with a reputable law firm.
Jennyfer Santana
Jennyfer Santana
21:17 21 Dec 17
Highly Recommended. Matt & Brad assisted with my case. I felt comfortable throughout the entire process. Matt was very understanding, patient, and ensured he answered all my questions! Both great guys and very friendly! It was a pleasure working with Matt and Brad.
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