The Benefits of Bankruptcy

In 2012, over one million people (1,221,091) filed bankruptcy in the U.S. Bankruptcy Courts. The process can be difficult, but it is often the quickest, most effective path to regaining financial security. We can help make it easier for you.

Benefits of a Chapter 7 Bankruptcy

When you file a Chapter 7, an “automatic stay” is put into place. This puts a stop to all collections attempts, lawsuits, wage garnishments, and other forms of contact from creditors. The distracting phone calls stop immediately. If a creditor is pursuing foreclosure, the process is put on hold for the duration of the bankruptcy proceedings. Typically, we expect three or four months from the time we file until debt relief.

Chapter 7 bankruptcy results in the discharge of obligations to pay off the unsecured debts you cannot afford. Obligations to credit cards, medical bills, and personal loans are cleared, and you walk away without legal responsibility to these companies. Some types of debts are exempt from this process, such as alimony, child support, student loans or government debts.

“Straight” or “Liquidation” Bankruptcy

Many refer to Chapter 7 as a liquidation bankruptcy because filing automatically places your assets into a bankruptcy estate. A trustee is given control of the estate until your case is closed. We can help you keep critical items, such as your car and home, if your payments are current and the total equity does not exceed your exemptions. When planned and executed professionally, a Chapter 7 can give you much more than it takes. But do you qualify?

Qualifying for a Chapter 7

When I sit down with you for a Chapter 7 consultation, I help determine whether the court will grant the bankruptcy. This starts with assessing your financial actions prior to filing. The court will look for suspicious activity, such as maxing out credit cards, borrowing money and giving money to members of the family. The court is constrained by a ‘look-back’ period and cannot look at old financial transactions. If you have some suspicious activity in your history, I will advise you on how to deal with it and how to avoid complications during the filing process.

Because there are so many legal and financial considerations at work in a Chapter 7 bankruptcy, it is important to consult with a law professional during the decision-making process. I can help you place your affairs in order to qualify and maximize the stability your bankruptcy affords. Call me at (215) 854-6342 for a free bankruptcy consultation.

Pennsylvania Bankruptcy Resources:

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