Philadelphia, PA Bankruptcy Defense Lawyers
Introduction
Feeling overwhelmed by debt? You’re not alone. Many Philadelphians find themselves in financial distress, unsure of where to turn. At Delancey Street, we understand the emotional toll that debt can take on you and your family. Our mission is to provide you with compassionate, expert legal guidance to navigate the complexities of bankruptcy law. Whether you’re considering Chapter 7, Chapter 13, or another form of debt relief, our experienced team is here to help you regain control of your financial future.
Common Concerns About Bankruptcy
Worried about losing everything? It’s a common fear, but it’s largely unfounded. Many people believe that filing for bankruptcy means forfeiting all their assets, but this isn’t necessarily true. In fact, federal and Pennsylvania state laws provide several exemptions that allow you to keep essential property. For example, under 11 USC Section 522, you may be able to protect your home, car, and personal belongings. Our attorneys will work with you to maximize these exemptions and safeguard your assets.
Think bankruptcy will ruin your credit forever? Another myth. While it’s true that bankruptcy will appear on your credit report for up to ten years, it doesn’t mean you’ll never get credit again. Many of our clients find that their credit scores improve within a year or two of filing, as they are no longer burdened by unmanageable debt. Plus, there are specific steps you can take to rebuild your credit post-bankruptcy, and we’re here to guide you through that process.
Understanding the Bankruptcy Process
What does the bankruptcy process involve? Filing for bankruptcy is a multi-step procedure that requires meticulous attention to detail. Here’s a general outline of what you can expect:
- Credit Counseling: Before you can file, you must complete a credit counseling course from an approved agency. This ensures you understand all your options and are making an informed decision.
- Filing the Petition: You’ll need to file a petition with the bankruptcy court, along with detailed documentation of your debts, assets, income, and expenses. This step initiates the automatic stay, which halts most collection actions against you.
- Meeting of Creditors: About a month after filing, you’ll attend a meeting of creditors, also known as a 341 meeting. Here, the bankruptcy trustee and your creditors can ask questions about your financial situation.
- Debtor Education: Before your debts can be discharged, you must complete a debtor education course. This is designed to help you manage your finances better in the future.
- Discharge: If all goes well, the court will discharge your eligible debts, freeing you from the legal obligation to pay them.
Types of Bankruptcy: Chapter 7 vs. Chapter 13
Chapter 7 Bankruptcy: Often referred to as “liquidation bankruptcy,” Chapter 7 involves selling non-exempt assets to pay off creditors. However, many filers find that they can keep most, if not all, of their property due to exemptions. This type of bankruptcy is typically completed within four to six months and is best suited for those with limited income and significant unsecured debt.
Chapter 13 Bankruptcy: Known as “reorganization bankruptcy,” Chapter 13 allows you to keep your property while repaying debts over three to five years. This option is ideal for individuals with a steady income who can afford to make regular payments. Under 11 USC Section 1322, you can propose a repayment plan that fits your budget, which must be approved by the court.
Case Study: In re Philadelphia Newspapers, LLC
To illustrate the complexities of bankruptcy, let’s look at the case of In re Philadelphia Newspapers, LLC, 690 F.3d 161. This case involved a defamation action and the subsequent Chapter 11 bankruptcy proceedings of Philadelphia Newspapers, LLC. The court had to determine whether the CSMI Parties were entitled to administrative expense claims. Ultimately, the District Court affirmed the Bankruptcy Court’s decision to deny these claims, emphasizing the importance of meeting specific legal standards for such requests.
Why Choose Delancey Street?
Experience and Expertise: Our team at Delancey Street has years of experience handling bankruptcy cases in Philadelphia. We understand the local laws and have a proven track record of helping clients achieve financial stability.
Personalized Attention: Every client’s situation is unique. We take the time to understand your specific needs and tailor our approach accordingly. From the initial consultation to the final discharge, we’re with you every step of the way.
Compassion and Understanding: We know that financial hardship can be incredibly stressful. Our attorneys are not just legal experts; they’re compassionate advisors who genuinely care about your well-being.
Call to Action
Ready to take the first step towards financial freedom? Contact us today for a free consultation. Let’s discuss your options and find the best path forward for you and your family. At Delancey Street, we’re committed to helping you build a brighter financial future.
Don’t wait – reach out now and let us help you reclaim your financial peace of mind. By following this structured approach, we’ve aimed to provide a comprehensive, engaging, and empathetic overview of bankruptcy defense in Philadelphia. If you have any questions or need further assistance, please don’t hesitate to contact us.