Chapter 7 Bankruptcy

Chapter 7 Bankruptcy

 

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)-545-0008. We offer a FREE and confidential consultation with one of our bankruptcy lawyers in our law offices to further discuss Chapter 7 Bankruptcy.

 

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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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