Bankruptcy Basics
PROVIDING BANKRUPTCY BASICS FOR MEDIA, PA; RISING SUN, MD & STATEN ISLAND, NY SURROUNDING AREA
Bankruptcy Basics
Bankruptcy law is a legal status for people or entities that cannot repay their debts. Filed in federal courts under rules outlined in the U.S. Bankruptcy Code, bankruptcy is commonly known by the chapter of the code it references, like Chapter 7 and Chapter 13.
When creditors are threatening to take away assets (like homes, cars, jewelry, or money from a bank account or tax return), or if creditors are simply in the process of doing so, individuals may avail themselves of bankruptcy protections. These protections can help stop collections and all asset recoveries, and may even allow for the return of some of those assets. Please call a knowledgeable bankruptcy attorney at the Siddons Law Firm to assess your particular situation and determine if bankruptcy is right for you, and if so, discuss the proper timing. Our law firm handles bankruptcy cases throughout the Media, PA; Rising Sun, MD & Staten Island, NY and surrounding areas.
LEARN HOW BANKRUPTCY IS ON YOUR SIDE
Intent Of The Law
Bankruptcy laws were developed to help prevent debtors (the people or entities that owe money) from becoming destitute by the actions of creditors (the people or entities you owe money to). The laws were also designed to help give debtors more time, thus allowing them to either reorganize their finances or find a way to settle their debts. This often allows the debtor to get a fresh start and still maintain possession of some of their assets.
LEARN MORE ON THE DIFFERENT TYPES OF BANKRUPTCY
Individual, Family Or Business - We Are Here To Help Your Debt
There are several forms of bankruptcy available, and which form applies to you depends on your particular situation and who you are (i.e. individual, corporation, non-profit charity, municipality, religious organization, etc.) The most common forms of bankruptcy are discussed below.
BANKRUPTCY FOR INDIVIDUALS:
- Chapter 7 -Also called “fresh start bankruptcy,” allows you to discharge your debts, but you must liquidate non-exempt property to pay your creditors.
- Chapter 13 – Known as the “wage earner plan,” Chapter 13 is called a reorganization, and allows you to keep valuable property if you are able to make the necessary payments.
BANKRUPTCY FOR BUSINESSES:
- Chapter 7 – This form of bankruptcy can be used by businesses to liquidate your assets.
- Chapter 11 – Used to reorganize the structure of your business.
OTHER FORMS OF BANKRUPTCY:
- Chapter 9 – Used by municipalities, including cities, towns, taxing districts, school districts, etc., to reorganize.
- Chapter 12 – This form is for family farmers and fishermen to provide debt relief.
- Chapter 15 – If parties are involved from more than one country, this form of filing is required.
Requirements for Filing Bankruptcy
Costs
Chapter 7
$1,800.00, plus the filing fee of $338 (Ch.7 fees and costs must be paid in full)
Chapter 11
Chapter 11 bankruptcy filings for a business require a minimum retainer of $15,000.00
Chapter 13
$5500.00, plus the filing fee of $310 for Chapter 13 (We require a $2500.00 retainer with the balance paid through your Ch. 13 plan)
Documents
- Last 2 years of filed tax returns
- Last 90 days of all bank statements
- Last 60 days of all pay advices
We accept most Employer sponsored legal plans (ie. MetLife, ARAG, etc.) Let me know if you wish to schedule a Case Intake Meeting to see if you are eligible for bankruptcy. If so, and before we will schedule a Case Intake Meeting, we require the list of documents above. There are additional documents that me be required- if you run a business for example) from you that we need to review beforehand. If you are interested in proceeding further, let me know and I will email you the list of documents that we would need to review.
Bankruptcy Lawyers
Individuals can file for bankruptcy pro se (without a bankruptcy lawyer) but because bankruptcy often has long-term financial and legal consequences, even the United States Courts highly recommend you seek legal counsel from a qualified bankruptcy lawyer. But being a good bankruptcy attorney requires a broader knowledge base and experience than just having a solid background in bankruptcy law. There are other options that must be discussed, and being steered towards bankruptcy without reviewing those options could cost you your ability to litigate in state court.
Other Options To Bankruptcy
Bankruptcy should be and is the option of “last resort.” Often times, you may have other options, like mortgage loan modifications. In some cases, like if you have no non-exempt property or wages, you may not even need to file bankruptcy at all, because there is nothing that creditors can take away from you, despite all their threats. Nor can you be threatened with jail time for civil debts (other than court ordered fines.) Seeking a good bankruptcy attorney can make sure you are aware of all your rights and options.
Call Siddons Law Firm at 610-255-7500 in Media, PA, 610-255-7500 in Staten Island, NY or (410) 705-0970 in Rising Sun, MD to discuss your options and rights during bankruptcy
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Frequently Asked Questions About Bankruptcy in Pennsylvania
What Is Bankruptcy and How Does It Work?
Bankruptcy is a federal legal process providing a fresh financial start. An automatic stay immediately stops creditor actions including lawsuits, garnishments, foreclosures, and collection calls.
How Do I Know If I Should File for Bankruptcy?
Consider bankruptcy if you cannot pay minimum payments, face wage garnishment or lawsuits, are facing foreclosure or repossession, debts exceed assets, or you use credit cards for basic expenses.
Which Chapter Should I File?
Chapter 7 for quick discharge with limited income. Chapter 13 to keep assets and catch up on secured debts. Chapter 11 for businesses or high-debt individuals. Chapter 12 for farmers and fishermen. Attorney Siddons evaluates your situation during a free consultation.
Will Bankruptcy Ruin My Credit Forever?
No. Most clients see significant credit improvement within 12 to 24 months after discharge. Bankruptcy often improves your credit trajectory by eliminating overwhelming debt.
Can Creditors Still Contact Me After Filing?
No. The automatic stay prohibits all creditor contact including calls, letters, lawsuits, and garnishments. Violations can result in contempt of court and damages.
What Property Can I Keep?
Pennsylvania exemptions protect your home, vehicles, retirement accounts (fully protected), household goods, and tools of trade. Most filers keep all their property.
How Much Does Bankruptcy Cost?
Filing fees are \$338 for Chapter 7 and \$313 for Chapter 13. For Chapter 13, attorney fees can be included in your plan. Free initial consultation at Siddons Law Firm.
What Debts Cannot Be Eliminated?
Most student loans, child support, alimony, recent tax debts, debts from fraud, restitution, and DUI injury claims typically survive bankruptcy.
How Long Does Bankruptcy Take?
Chapter 7: 3 to 4 months. Chapter 13: 3 to 5 year repayment plan. Emergency filings available within 24 to 48 hours for imminent foreclosure or garnishment.
Do I Have to Go to Court?
Usually just one brief 341 Meeting of Creditors (5 to 10 minutes, not in a courtroom). Your attorney attends with you and prepares you in advance.
