Chapter 7 Bankruptcy FAQ’s

Chapter 7 Bankruptcy can help wipe out unsecured debts within months, but your trustee can sell your nonexempt property to pay your creditors the money you owe. In contrast, you can keep your assets under Chapter 13 bankruptcy while making monthly payments to your creditors.

The Bankruptcy Means Test determines your eligibility for Chapter 7. In simple terms, when comparing your current monthly income against the median income for a household of your size in Pennsylvania, if it is equal to or less than the median, you are eligible for Chapter 7. If you have higher income, under circumstances like recent job loss or reduction in pay, you may be able to file under Chapter 7.

You are required to undergo credit counseling before filing for bankruptcy. Next, collect all financial paperwork that will help your attorney determine your eligibility for Chapter 7 and proceed with a petition. Once it is filed, the court will place an automatic stay that stops payment collection, housing foreclosure, or eviction. A court-appointed trustee will call a Section 341 Meeting of Creditors. Following the meeting, the trustee will liquidate nonexempt property and distribute the proceeds to creditors.

The Sadek Bankruptcy Law Offices Difference

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Center City Philadelphia, PA

1500 JFK Boulevard, Suite 220
Philadelphia, PA 19102
(215) 545-0008
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Northeast Philadelphia, PA

2375 Woodward Street, Suite 105
Philadelphia, Pennsylvania 19115-5119
(215) 545-0009
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Delaware County, PA

Victoria Mills Business Center
1489 Baltimore Pike #218
Springfield, Pennsylvania 19064-3968
(610) 432-3111
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Montgomery County, PA

630 Freedom Business Center Drive, Suite 36
King of Prussia, Pennsylvania 19406-1331
(610) 951-4655
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Bucks County, PA (Trevose)

5 Neshaminy Interplex, Suite 205
Trevose, Pennsylvania 19053-6932
(215) 468-3328
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Egg Harbor, NJ

6712 Washington Avenue Suite 209B
Egg Harbor, NJ 08234
(609) 205-6200
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Mount Laurel, NJ

701 East Gate Drive, Suite 129
Mount Laurel, New Jersey 08054-3924
(856) 343-4068
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Moorestown, NJ

302 North Washington Avenue, Suite 101 West
Moorestown, New Jersey 08057-2448
(856) 343-4068
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Cherry Hill, NJ

One Mall Drive, Suite 415
Cherry Hill, New Jersey 08002-2101
(856) 890-9003
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