Chapter 13 Bankruptcy



The main difference between a Chapter 7 and a Chapter 13 Bankruptcy is that in a Chapter 13 Bankruptcy the petitioner makes a monthly payment toward his/her debt. A Chapter 13 Bankruptcy filing is most commonly used in three (3) situations.

Situation #1

A person is facing mortgage foreclosure or a tax sale on their home. By virtue of the automatic stay in Bankruptcy, upon the Bankruptcy filing on your behalf the foreclosure or tax sale is stopped. In exchange, the homeowner will pay back the mortgage or tax arrearages interest free while enjoying their home. Additionally, if any other unsecured debts exist they will be paid a mere percentage and included in the Chapter 13 Bankruptcy plan.

Scenario #2

In 2005 the Bankruptcy laws were amended. Among other changes, the medium income standards were implemented. Generally, if a person or couple’s income exceeds the medium income standards then a Chapter 13 Bankruptcy is presumed appropriate. There are a many factors in determining if a Chapter 13 Bankruptcy is necessitated based on income and therefore it is imperative that you consult out Bankruptcy Attorneys to fully discuss your situation.

Situation #3

A person has equity over the bankruptcy exemptions in personal or real property. Using the “liquidation analysis” the court will mandate a payment toward unsecured debt up to the amount of the non-exempt equity or the amount of the debt itself. Although this scenario may sound confusing, the Philadelphia Bankruptcy Lawyers at Sadek Law Offices, LLC can explain if you fall into this rare category of Chapter 13 Bankruptcy.

Call our Chapter 13 Philadelphia Bankruptcy Attorneys at 215-545-0008 for your free Chapter 13 Bankruptcy Consultation.

Why Choose Sadek Law Offices, LLC as your Chapter 13 Philadelphia Bankruptcy Attorney?

  • In-office Bankruptcy Consultation
  • Super Lawyers™ 2010
  • Friendly, Honest and Knowledgeable Lawyers and full-time Staff
  • We answer your creditor phone calls
  • Reasonable Legal Fees
  • Six (6) Month Payment Plans
  • Member of National Association of Consumer Bankruptcy Attorneys
  • Fast answered and returned Phone Calls
  • Stop Credit Card Debt, Collections, Tax Debt or Mortgage Foreclosure
  • Convenient Center City Philadelphia Location
  • Fresh Start NOW!