Best Consumer Protection Lawyers in Philadelphia, PA

For many people, bankruptcy is a pathway to a fresh financial start. Bankruptcy can allow a filer to:Discharge or wipe away the vast majority of your debt. Protect your home from foreclosure and provide additional time to catch-up on the payments for the mortgage. Protects property by preventing the repossession of a car or other property. Bankruptcy law can also allow the filer the right to redemption by or forcing the creditor to return property even after it has been repossessed. Stops wage garnishmentsEnds debt collection harassment and similar creditor actions to collect a debt through the automatic stay. Restore or prevent the termination of a utility service such as heat, water, or electricity. Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than you really owe.

In a Chapter 13 bankruptcy plan, the filer will submit a three to five year plan showing how he or she will pay off some of your past-due and current debts. The most important thing about a Chapter 13 case is that it will allow you to keep valuable property- especially your home and car which might otherwise be lost, if you can make the payments which the bankruptcy law requires to be made to your creditors. in most cases, these payments will be at least as much as your regular monthly payments on your mortgage or car loan, with some extra payment to get caught up on the amount you have fallen behind. You should consider filing a chapter 13 plan if you:Own your home and are in danger of losing it because of money problems;Are behind on debt payments, but can catch up if given some time;Have valuable property which is not exempt, but you can afford to pay creditors from your income over time. You will need to have enough income in chapter 13 to pay for your necessities and to keep up with the required payments as they come due.

Yes, you can own property after a bankruptcy. Many people believe that they will be left bereft of any worldly possessions after a bankruptcy case. This is not true. You can keep your exempt property and anything you obtain after the bankruptcy is filed. However, if you receive an inheritance, a property settlement, or life insurance benefits within 180 days after filing for bankruptcy, that money or property may have to be paid to your creditors if the property or money is not exempt.

Yes, bankruptcy will almost certainly affect your credit negatively at the outset. However, if you are considering bankruptcy you are probably already under significant financial stress and are likely to have a low credit score. In the long term, bankruptcy will allow you to rebuild your credit.