Chapter 7 (Fresh Start Bankruptcy)

In a bankruptcy case under chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for “exempt” property which the law allows you to keep.   In most cases, all of your property will be exempt. But property which is not exempt is sold, with the money distributed to creditors. If you want to keep property like a home or a car and are behind on the mortgage or car loan payments, a chapter 

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Will I Have To Go To Court?

In most bankruptcy cases, you only have to go to a proceeding called the “meeting of creditors” to meet with the bankruptcy trustee and any creditor who chooses to come. Most of the time, this meeting will be a short and simple procedure where you are asked a few questions about your bankruptcy forms and your financial situation. Occasionally, if complications arise, or if you choose to dispute a debt, you may have to appear before a judge at a hearing. If you need to go to court, you will receive notice of the court date and time from the 

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What Is Bankruptcy?

Bankruptcy is a legal proceeding in which a person who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law. Call me for a free consultation at (215) 551 7109. Please visit our website for more information at www.thephiladelphiabankruptcyattorney.com.

What Can Bankruptcy Do For Me?

Bankruptcy may make it possible for you to: Eliminate the legal obligation to pay most or all of your debts. This is called a “discharge” of debts. It is designed to give you a fresh financial start. Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. (Bankruptcy does not, however, automatically eliminate mortgages and other liens on your property without payment.) Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed. Stop wage garnishment, debt collection harassment, and similar 

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What Are the Main Differences Between Chapter 7 and Chapter 13 Bankruptcy

Chapter 7 is called “liquidation” bankruptcy because filers may lose some of their property, with some important exceptions. Chapter 7 is reserved for individuals and businesses with little or no ability to repay debts in the future. So those who file Chapter 7 may lose non-exempt assets in exchange for having most debts erased. Chapter 13 is called “reorganization” bankruptcy because it allows consumers to reorganize their debt burdens and payment schedules. Anyone filing for Chapter 13 must also propose a repayment plan showing your income and how you will pay off your debts. Working with the court, your plan 

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Bankruptcy and Divorce. Which Comes First?

File for Bankruptcy First. If you and your spouse are on good terms, then consider a bankruptcy before the divorce. By filing jointly, all debts will be addressed under one bankruptcy case. You can wipe out your joint debts together and may also be able to increase your exemption amounts. This is also helpful if one spouse makes all the money because it will increase the chance of qualifying for a Chapter 7 for that spouse. Bankruptcy will also eliminate contracts that neither one of you wants, like car loans that cost too much or mortgages on houses that are 

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Will Bankruptcy Wipe Out All My Debts

Yes, with some exceptions. Bankruptcy will not normally wipe out: • money owed for child support or alimony; • most fines and penalties owed to government agencies; • most taxes and debts incurred to pay taxes which cannot be discharged; • student loans unless you can prove to the court that repaying them will be an “undue hardship;” • debts not listed on your bankruptcy petition; • loans you got by knowingly giving false information to a creditor, who reasonably relied on it in making you the loan; • debts resulting from “willful and malicious” harm; • debts incurred by 

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Famous people who survived and thrived after bankruptcy

Famous people who survived and thrived after bankruptcy The word “bankruptcy” is thought of as an admission of failure; something that an individual or a business can never rebound from but is that true? I don’t so. Abraham Lincoln didn’t think so either when his general store that he ran as a young man failed in New Salem, Illnois, in 1832. Honest Abe got behind on his bills and his creditors took him to court. Abe lost his remaining assets: a horse and some surveying gear. Unfortunately for Abe, Congress passed the bankruptcy law in 1841, which probably would have 

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Bankruptcy Increases Your Credit Score

The Federal Reserve Bank of Philadelphia published a study in 2014 where they analyzed 600,000 bankruptcy filers and examined their credit access after consumer bankruptcy between 2002 to 2013. The Conclusion: The average credit score in 2010 went up more than 80 points — from 538 to 620. Contrary to the bankruptcy myths out there, bankruptcy improves your credit score. But Why? A credit score is composed of 35% payment history; 30% outstanding debt ; 15% length of credit history; 10% new credit; and 10% credit mix. Bankruptcy erases the 30% of outstanding debt and that is why your credit score increases 

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What About My Car?

What About My Car? When you file Chapter 7 bankruptcy, you have options with your car. You can KEEP IT – or – REPLACE IT, and save thousands in the process! 722 Redemption is a section of the United States Bankruptcy Code that empowers a debtor with the statutory right to redeem their vehicle for what the vehicle is worth – NOT what they owe. Let’s say you owe $30,000 on your car note but the market value of your car is only $15,000. You can use the 722 Redemption process to refinance the vehicle at $15,000. That means you 

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