King of Prussia Chapter 7 Bankruptcy Attorney
Do you need a fresh start or advice about your debt situation? Contact Siddons Law Firm, an experienced King of Prussia Chapter 7 Bankruptcy attorney in Philadelphia.
King of Prussia Chapter 7 Bankruptcy Attorney
The debt relief of a concluding Chapter 7 Bankruptcy claim is an opportunity to regain control of your financial future. Debt has myriad knock-on effects for any individual or business, and the federal legislature recognizes this quandary. The government has enacted bankruptcy laws to alleviate insurmountable burdens caused by credit card debt, medical bills, unpaid rent, and other financial obligations.
At Siddons Law Firm, we have spent many years serving King of Prussia residents who face overwhelming debt. Our experienced Bankruptcy attorney will help you file for bankruptcy and address any needs you have regarding the process. We handle the entire bankruptcy case in the Montgomery County Bankruptcy Court, and our trustworthy legal services will see you smoothly through the process.
Before our law office agrees to take a case, we offer potential clients one of our free consultations. It is an excellent way to help you analyze your financial situations and determine whether our attorney is your most favorable option.
If you would like to explore what others have to say about Siddons Law Firm, feel free to view our testimonials.
What Is Chapter 7 Bankruptcy?
The Chapter 7 filings are common in the State of Philadelphia. Every day, Americans choose to hire a competent bankruptcy lawyer like ours to file for Chapter 7, represent them, safeguard their assets, and discharge any unsecured debt. If you have no way to repay your debts, formal bankruptcy is often an excellent alternative.
Chapter 7 Bankruptcy eliminates unsecured debt accrued through:
- Credit cards
- Lines of credit
- Medical bills
- Overdue rent
- Private loans
- Social Security overpayments
- Past-due utility bills
Many in King of Prussia, PA, worry that filing for Chapter 7 bankruptcy might mean losing everything. However, certain assets remain exempt from liquidation during the bankruptcy proceeding, including:
- Automobiles under a specified value
- Partial home equity
- Appliances
- Jewelry under a specified value
- Basic clothing
- Basic home goods and furniture
- Pensions
- Work tools under a specified value
- Partial unpaid wages
- Certain public benefits
- Court-awarded damages for personal injuries
In exchange for wiping the slate clean, the court will liquidate non-exempt assets and distribute these proceeds to waiting creditors. The types of assets that do not qualify for this type of exemption from the bankruptcy estate might include:
- A second vehicle
- A second home
- Heirlooms and mementos
- Bank accounts and cash
- Investment accounts
- Valuable collections
What Are the Benefits of Chapter 7 Bankruptcy?
When clients turn to our experienced King of Prussia Chapter 7 Bankruptcy attorney, it is a chance to put the past behind them. Chapter 7 Bankruptcy also provides other helpful benefits, including protecting future income, discharging an unlimited amount of unsecured debt, and liberating the burden of obligations to past creditors.
Free consultation
Quick analysis of your business
Protection for Future Income
Most future income received by a bankruptcy client remains untethered to the estate. However, some exceptions might arise if received within 180 days of filing for Chapter 7 Bankruptcy:
- Inheritance
- Property acquired in divorce proceedings
- Property received as part of settlements
- Life insurance benefits
- Death benefits
Unlimited Unsecured Debt Discharge
As a unique feature of Chapter 7 Bankruptcy, congress has not set a limit for the maximum amount of debt permissible to file. Even individuals who owe millions may find relief from their financial burdens through Chapter 7 proceedings.
No Past Obligations
One of Chapter 7 Bankruptcy’s most attractive aspects involves the freedom from past obligations that were formerly overdue. Credit counseling often results in long-term repayment plans, but Chapter 7 provide a clean break between creditors and bankrupt debtors. There’s a second chance at financial independence, and life can move forward.
The Differences Between Chapter 7 and Chapter 13 Bankruptcy
Many clients at Siddons Law Firm inquire about the comparison between Chapter 7 and Chapter 13 bankruptcy proceedings. While the two avenues are similar, there are clear differences in legal nuances for maximum debt, future obligations, time constraints, and other financial limits.
Maximum Debt Limit
Any reliable King of Prussia Chapter 7 Bankruptcy attorney will advise you on the benefits of having no maximum unsecured debt limit. Chapter 13 does not grant applicants the same freedom, and the maximum limit changes every three years. Any Chapter 13 Bankruptcy petitions set definite limits on both secured and unsecured debt that changes the legal situation considerably.
Processing Time
While Chapter 7 Bankruptcy proceedings may conclude within a matter of months, Chapter 13 typically takes years. The rules allow for payment plans of three or five years, but Chapter 13 clients remain at the mercy of the court and continue to make payments until this is over. Chapter 7 proceeding offers far more immediate relief.
Future Obligations
Chapter 7 Bankruptcy frees clients from future obligations on past debts, but Chapter 13 Bankruptcy requires strict payment plans. You must adhere to these payments to enjoy the full benefits of asset protection and debt discharge from the court. Defaulting on a Chapter 13 payment plan will quickly result in foreclosure, repossession, or dismissal of the entire bankruptcy case.
Financial Thresholds
Lawmakers intended Chapter 7 to provide relief to citizens with minimal assets and lower income. It’s why no payment plan requirement exists for Chapter 7 applicants. However, Chapter 13 applies to individuals with myriad assets and relatively little debt, which is why they can retain ownership of more assets if they have the means to meet payment plan obligations.
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Call Our King of Prussia Chapter 7 Bankruptcy Attorney Today
Do you need more time to decide whether bankruptcy is the right decision to resolve your debt issues? Contact Siddons Law Firm today at (610) 255-7500 for a free consultation.
Alternatively, learn more about us to explore your options.