Bankruptcy Laws

Bankruptcy Laws

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

The new law establishes a more strict criteria for Chapter 7 filing. A debt can typically be discharged in a Chapter 7 bankruptcy if it is unsecured, meaning that there is no collateral backing it up. This includes debts such as credit card debt, medical bills and most personal loans. A Chapter 13 bankruptcy case involves a three to five year repayment plan. To qualify for Chapter 13, you must have a regular source of income, have enough disposable income, and your debts may not be too high.

The central feature of the new bankruptcy law is a “means test.” A means test stipulates that if your income is above a specified level, then you are not permitted to file bankruptcy under Chapter 7 and must use Chapter 13 instead. Chapter 13 requires that you enter into a repayment plan rather than simply liquidating your debts. In general, those with household income over the median income for their state are likely to be forced into Chapter 13 proceedings; however, this may not always be the case.

Makes The Means Test Complex :

  • Living Costs
  • Health Insurance
  • Business Expense Needs
  • Domestic Support Obligations

There are several allowable exemptions and deductions used in determining how much of a person’s income is available for paying unsecured non-priority debt (Chapter 13). While this makes the means test complex, it is an attempt to compensate for some basic required expenses such as basic living costs, health insurance, business expense needs, and domestic support obligations.

In addition to the means test described hereinabove, under the new bankruptcy law, every Debtor filing for protection under Chapter 7 or Chapter 13 of the US Bankruptcy Code must take a credit counseling and debtor education course. These courses are set up for you in my law office and may be taken online or over the phone. Each course takes approximately 45 minutes to complete.

When you’re filing a bankruptcy, it is critical to understand your legal rights. The Philadelphia, Pennsylvania bankruptcy law firm of Sadek & Cooper Law Offices personally meets with every client for the initial consultation to determine the appropriate course of action.

If you require assistance with personal or business bankruptcy filing and require the assistance of an experienced bankruptcy attorney in Allentown or Philadelphia, PA or within the surrounding counties of Montgomery, Bucks, Chester, Delaware Counties and Southern New Jersey. Please contact the bankruptcy attorneys of Sadek & Cooper Law Offices, LLC today at (215)-545-0008. We provide a FREE consultation with an experienced Allentown or Philadelphia debt relief and bankruptcy attorney.

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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!
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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 !
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20:14 09 Jan 18
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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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