Can Chapter 7 Bankruptcy Eliminate My Credit Card Debt?

Can Chapter 7 Bankruptcy Eliminate My Credit Card Debt?

Credit cards are an essential financial tool for most people in today’s world. To start, credit cards provide significant convenience since people can use the card to purchase goods without having to carry cash. Furthermore, a credit card permits a person to buy products and services on credit. For many people, this aspect of a credit card provides necessary liquidity and flexibility. Furthermore, using and paying off a credit card is one of the most common ways to build credit. As such, many people effectively leverage these aspects of a credit card without running into trouble.

Unfortunately, any individual who uses credit cards can run into trouble. While it is common to think that only people who lack self-control get into trouble with credit card debt, our practice experience has shown that even the most responsible individuals can fall behind. The loss of a job, serious medical issue, or a personal injury are all common reasons why people incur significant amounts credit card debt.

If you are facing significant credit card debts, are having trouble making minimum payments, or seem to sink deeper into debt each month Chapter 7 bankruptcy may provide a solution to your debt problems. The Philadelphia bankruptcy attorneys of Sadek & Cooper can help you determine whether Chapter 7 is right for your situation. To schedule a free and confidential consultation call us at 215-545-0008 today.

Chapter 7 Bankruptcy Can Eliminate Unsecured Debts while Protecting Your Property in Pennsylvania or New Jersey

Chapter 7 bankruptcy is the form of bankruptcy that is probably more familiar to most people. A Chapter 7 bankruptcy proceeding is also sometimes referred to as a liquidation. In a liquidation, a bankruptcy trustee may sell any property that is not exempt to satisfy debts to creditors. Typically, a Chapter 7 bankruptcy discharge will eliminate all unsecured debts at a significant discount compared to if the individual attempted to pay them off.

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While there is the potential for some property to be sold in a Chapter 7 proceeding, this does not mean that you will lose all of your property and savings. When you declare Chapter 7 bankruptcy in Pennsylvania, you have the option to select either the state-based exemptions or the federal exemptions. Since exemptions are the property you keep, many people make use of exemptions for:

  • A Home
  • Pensions
  • Insurance benefits
  • Business property
  • Personal property

The Pennsylvania exemptions also allow a person a “wildcard” exemption permitting bankruptcy filers to protect even greater amounts of property. This means that when filing for a Chapter 7 bankruptcy in Pennsylvania, there is a high likelihood that state exemptions, federal exemptions, or either set of exemptions will permit you to keep significant amounts, if not all, of your property.

Chapter 7 Bankruptcy Is Often the Fastest Way to Eliminate Debt

One of the other main benefits of a Chapter 7 bankruptcy filing is the fact that these proceedings are significantly less lengthy than a Chapter 11 or Chapter 13 bankruptcy filing. That is, a Chapter 13 wage earner’s plan will last for three to five years. By contrast, in favorable circumstances an individual can complete the entire Chapter 7 bankruptcy process – from filing to discharge – in less than six months.

This is a significant benefit to many Pennsylvanians and bankruptcy filers because most people simply want to get through the process so that they can have a fresh start. Most people would prefer to complete the bankruptcy process in as little time as possible so that they can begin rebuilding their credit. Furthermore, many people do not want to have their finances controlled by a Chapter 13 plan for years.

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Contact a Philadelphia Bankruptcy Lawyer If You Think Chapter 7 Bankruptcy Is the Right Choice for Your Situation

When considering any legal action, it is important to assess all facts and circumstances relevant to the matter. When considering a potential bankruptcy a lawyer should always first learn about your debts, financial information, and your goals for the bankruptcy.  Only after an individualized consultation can a bankruptcy attorney assess whether Chapter 7 bankruptcy is likely to achieve your legal and financial goals.

To schedule a confidential, no-commitment with strategic Philadelphia bankruptcy lawyers call Sadek & Cooper today at 215-545-0008. We have law offices conveniently located in Center City Philadelphia, northeast Philadelphia, Bucks County, Delaware County, and in southern New Jersey.

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SEEWHAT OUR CLIENTS ARE SAYING

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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