Tadross Law will help you file for Chapter 13 Bankruptcy in Philadelphia & Lansdale, PA
If you do not qualify for Chapter 7 bankruptcy, Chapter 13 may be a beneficial type of relief for you under the Bankruptcy Code. Chapter 13 bankruptcy is a payment arrangement that allows you to pay back debts, including missed auto loan payments or mortgage payments, over time to help you save your car or home. If your income is too high to qualify for Chapter 7, Chapter 13 is your best alternative. The attorneys from Tadross Law have the experience to walk any client through the Chapter 13 bankruptcy process.
Explaining the Chapter 13 Bankruptcy Process
The initial process is very similar to a Chapter 7, in that our lawyers, on your behalf, would submit the petition, schedules, and other documents detailing your financial situation to the Court. Unlike a Chapter 7, however, under Chapter 13, our attorneys would also submit a plan to the Court, setting forth your repayment plan to creditors, detailing the proposed length of repayment and the amount of repayment.
Your payment plan is based on your “disposable income,” which is the income remaining after paying off certain allowable expenses such as housing, utilities, etc. In order to take advantage of a Chapter 13, our lawyers will have to prove that you have sufficient regular income to pay back at least a portion of your debt.
Benefits of Chapter 13
Chapter 13 bankruptcy has several important advantages over Chapter 7 for those who qualify, including the following:
- Allows you to keep your home by providing the breathing room you need to catch up on your payments
- Eliminates Second Mortgage Liens
- Reduces payments on qualifying vehicles and other secured debts, making them affordable
- Provides time to catch up on child support and unpaid taxes
- Enables you to repay a portion of your credit card and other unsecured debt
- Make payments directly to your bankruptcy trustee, who then pays your creditors, so you no longer need to deal with creditors directly
- Protects co-Signers from Collections, without requiring them to file a bankruptcy petition
How Long Does Chapter 13 Last?
Most Chapter 13 bankruptcy plans can last anywhere between 36 and 60 months. During this time, the majority of creditors will be banned from contacting you. When you reach out to our lawyers for bankruptcy protection in Delaware County, the court will inform listed creditors to stop the constant phone calls. Since the court notifies creditors via mail, it takes about one to two weeks for letters to be received and debt collection efforts to be put on halt.
Hiring a Bankruptcy Law Firm in Philadelphia
With all the logistics involved in carrying out a successful Chapter 13 bankruptcy, it’s important that you have an experienced and highly trained lawyer on your side. At Tadross Law, we operate offices in Philadelphia and Lansdale, and always vouch to fight for the hardworking people of our area. If you live in Delaware County, Landsdale, or the surrounding areas, contact us today for a free consultation. We can also help clients deal with debt settlement and foreclosure defense.