Experienced Bankruptcy Attorneys Serving Pennsylvania, New Jersey, New York & Maryland
Financial hardship can happen to anyone. Whether you are facing overwhelming credit card debt, medical bills, foreclosure, wage garnishments, or creditor harassment, bankruptcy may provide the fresh start you need. At Siddons Law Firm, our bankruptcy lawyers guide clients through Chapter 7 and Chapter 13 bankruptcy with compassion and expertise. Call (610) 255-7500 for a free consultation to discuss your options.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, allows qualifying individuals to discharge most unsecured debts including credit card balances, medical bills, personal loans, and certain tax debts. The process typically takes three to six months and provides immediate relief through the automatic stay, which stops creditor calls, lawsuits, wage garnishments, and foreclosure proceedings.
To qualify for Chapter 7, you must pass the means test, which compares your income to the median income in your state. Pennsylvania, New Jersey, New York, and Maryland each have different median income thresholds and exemption amounts. Our attorneys will analyze your financial situation to determine if Chapter 7 is right for you.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy allows individuals with regular income to restructure their debts through a three-to-five-year repayment plan. This option is ideal for homeowners facing foreclosure who want to keep their property, people with income above the Chapter 7 means test threshold, individuals who want to catch up on mortgage or car loan arrears, and those with non-dischargeable debts like certain taxes or student loans.
Debts That Can Be Addressed Through Bankruptcy
Bankruptcy can help with credit card debt, medical bills and hospital liens, personal loans and payday loans, utility bills, certain tax debts, mortgage arrears (Chapter 13), car loan deficiencies, business debts, and judgments and wage garnishments.
The Automatic Stay: Immediate Protection
One of the most powerful tools in bankruptcy is the automatic stay, which goes into effect the moment your case is filed. The automatic stay immediately stops creditor phone calls and letters, wage garnishments, bank account levies, foreclosure proceedings, vehicle repossession, utility disconnections, and most lawsuits against you.
Frequently Asked Questions
Will I lose my home if I file bankruptcy?
Not necessarily. Pennsylvania’s homestead exemption and federal exemptions protect a certain amount of equity in your primary residence. Chapter 13 bankruptcy is specifically designed to help homeowners catch up on mortgage payments and keep their homes.
How long does bankruptcy stay on my credit report?
Chapter 7 remains on your credit report for 10 years, and Chapter 13 for 7 years. However, many clients see their credit scores begin to improve within one to two years after discharge as they rebuild their credit with responsible financial habits.
Can I keep my car in bankruptcy?
In most cases, yes. Between motor vehicle exemptions and reaffirmation agreements, our attorneys work to protect your vehicle in bankruptcy.
Contact Our Bankruptcy Lawyers
If debt is overwhelming your life, contact Siddons Law Firm at (610) 255-7500. We offer free consultations and affordable payment plans for bankruptcy representation.