Bryn Mawr Bankruptcy Lawyer

Each type of bankruptcy is called a “chapter.” Some chapters of bankruptcy are ideal for businesses, while others are more compatible with individuals, whether filing individually or jointly with a spouse.

Whether filed jointly or individually, the two most common types of personal bankruptcy are Chapter 7, which is also called “liquidation” bankruptcy, and Chapter 13, which is also called “reorganization” bankruptcy. Both have the power to:

• Help you lower or eliminate debt.
• Protect some or all of your property.
• Temporarily stop debt collectors from contacting you.

There are also similarities when it comes to the debts which can be eliminated, or “discharged,” by the bankruptcy court. Both chapters allow debtors to discharge, or wipe out, debts that are related to:

• Business Loans
• Credit Cards
• Medical Bills
• Past-Due Rent
• Past-Due Utilities
• Personal Loans
• Social Security Overpayments

In addition, Chapter 13 allows some additional debts to be discharged that cannot be discharged in Chapter 7, such as debts related to homeowners’ association fees.

While Chapter 7 and Chapter 13 are alike in many ways, there are also substantial differences between the processes each chapter follows. Some of the most important differences between Chapter 13 and Chapter 7 bankruptcy are that:

• Debtors who file Chapter 13 are required to make recurring payments, usually on a monthly basis, to the bankruptcy trustee. Debtors who file Chapter 7 do not have to make any payments to the trustee.
• Chapter 7 requires roughly four to six months for completion. Chapter 13 bankruptcy cases follow long-term reorganization plans which require three to five years for completion.
• In Chapter 7, the trustee can liquidate, or sell, the debtor’s belongings, with some exceptions. The trustee does not have this power in Chapter 13, if the debtor complies with their payment plan.
• Chapter 7 debtors are often able to keep their property. However, if your specific goal for filing bankruptcy is to prevent foreclosure and save your home, Chapter 13 is likely to be the stronger option. Unlike Chapter 7, Chapter 13 allows debtors to catch up on missed mortgage payments, enabling foreclosure prevention. Similarly, Chapter 13 also allows the debtor to keep his or her vehicle by catching up on missed auto loan payments.

If you decide to declare bankruptcy in Bryn Mawr, you will likely use one of these filing options. At Sadek Bankruptcy Law Offices, LLC, our knowledgeable legal team includes both Chapter 7 attorneys and Chapter 13 lawyers, enabling us to walk you through a detailed, point-by-point comparison should we determine that bankruptcy is appropriate for your situation.

If bankruptcy is not appropriate for your situation, our attorneys may be able to assist you with a more suitable alternative, such as:

• Debt Consolidation
• Debt Settlement
• Mortgage Modification
• Pre-Foreclosure Forbearance Plans
• Short-Sale