Upper Darby 7 Bankruptcy Attorney

Upper Darby Bankruptcy Attorney

If you’re facing a mountain of debt with no end in sight, you might be considering bankruptcy as a potential path towards getting out of the red. However, the question remains, what type of bankruptcy should you choose: Chapter 7, 11, or 13? Which option will work best for you depends on factors like your income, assets, and whether you seek business or personal bankruptcy.

At Siddons Law Firm, it’s our goal to get our clients back on their feet and pursue a fresh start. Our experienced Upper Darby bankruptcy attorneys will work hard to guide you through the legal jungle and achieve your goals through the path of least resistance.

What Debts Can Bankruptcy Remove?

The point of bankruptcy is to reorganize your debts and make them manageable. Keep in mind that while this process writes off most types of debt, it doesn’t eliminate all of them. Some debts that we can help you eliminate include:

  • Credit cards
  • Medical bills
  • Overdue rent and utility expenses
  • Benefit overpayments
  • Business debts

Some debts that bankruptcy won’t help with include:

  • Child support
  • Alimony
  • Unpaid taxes
  • Student loans (unless the debtor can prove undue hardship)
  • Debts for personal injury or death as the result of driving under the influence of alcohol or drugs
  • Fraudulent debts

It’s crucial to list all your debt in your bankruptcy application. Otherwise, you may still be responsible for any missed debts even after you successfully go through the bankruptcy process. If you want to avoid this issue, reach out to our team. Our bankruptcy lawyers are always happy to help.

Different Types of Bankruptcy

Federal law—rather than state law—governs all forms of bankruptcy. How does that affect you? It ensures that bankruptcy laws are uniform throughout the country, whether it’s Upper Darby bankruptcy or anywhere else.

However, these laws have various “chapters” that each represent a different type of bankruptcy. Our bankruptcy lawyers at Siddons Law Firm can recommend a chapter that best fits your needs and guide you through the process. These chapters include:

Chapter 7

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is arguably one of the most common bankruptcy types. It can even be used by small business owners. At Siddons Law Firm, we offer zero-down services with convenient monthly payments that start thirty days after filing your bankruptcy paperwork—no need to worry about steep upfront costs or interest payments.

When you file for Chapter 7, we might need to liquidate or sell a part of your property to lower your debts. After selling your property and using the proceeds to pay off secured debt, most if not all your unsecured debts are discharged. You can retain your property if the bankruptcy laws classify them as “exempt.” Examples of exempt assets include:

  • Clothing
  • Pensions
  • Household furnishings and appliances
  • Jewelry, up to a certain value
  • Motor vehicles, up to a certain value
  • A portion of the equity in your home
  • Equipment used for work
  • A part of unpaid but unearned wages
  • Public benefits (like welfare, unemployment compensation, and social security)

Who is Chapter 7 bankruptcy best for? If your total income is below the median income in Pennsylvania, and your debt and income pass the “means test,” you may benefit from Chapter 7 bankruptcy. Some people might be hesitant to file Chapter 7 because it stays on your credit record for ten years, but you will likely harm your credit score more in the long run if you continue accumulating unpaid debts.

Chapter 11

While Chapter 7 bankruptcy can eliminate personal and business debts, Chapter 11 specifically reorganizes crippling business debt while keeping a business open and retaining its daily operations. Many established companies file for Chapter 11 over Chapter 7 because it allows them to run their business and become profitable again, all while getting protection from their creditors’ collection efforts.

Keep in mind that while you can continue your operations, every significant business decision must have the approval of a bankruptcy court. After a successful Chapter 11 bankruptcy, the court will grant you partial or complete relief of your business’s debts and contractual obligations, which may include:

  • supply and vendor contracts
  • real estate leases
  • loans

Who is Chapter 11 bankruptcy best for? Our Upper Darby Bankruptcy attorneys are more than happy to assess your company’s assets and debts to see if you will benefit from Chapter 11. In general, this form of bankruptcy is for established businesses that want a faster route to regain profitability.

Chapter 13

Chapter 13—also known as wage earner bankruptcy—is a potential option if you’re overwhelmed by debt obligations but have a steady income. Many opt for Chapter 13 over Chapter 7 because it halts all foreclosure proceedings and provides a chance to retain your property.

When you reach out to our Upper Darby bankruptcy attorneys for Chapter 13 bankruptcy, we’ll immediately put an end to wage garnishment, litigation, and other forms of harassment. This affords you precious time to assess your financial situation and focus on restructuring debt.

Who is Chapter 13 bankruptcy best for? If you fail the means test and don’t qualify for Chapter 7, Chapter 13 is a viable option. It gives you five years to repay your creditors while retaining most of your property, and it only stays on your credit report for seven years.

An Upper Darby Law Firm You Can Trust

Our bankruptcy attorneys have assisted numerous clients in reestablishing their financial footing—and we can help you too. 

Whether you want to erase personal or business debt, our experienced team will keep you fully protected under the law, put a stop to harassment from creditors, and prevent legal mistakes that can prove costly. You can trust us to fully utilize the country’s bankruptcy laws to your benefit and avoid potential consequences. 

By choosing Siddons Law Firm, you get a team that will stand beside you throughout the bankruptcy process, keep you regularly updated, and answer your questions and concerns. Call us at 610-255-7500 for a free consultation with an Upper Darby bankruptcy attorney!