At Cibik & Cataldo P.C., we never assume that your financial situation is the same as anyone else’s. Our bankruptcy attorneys work with you, asking about your personal experience with debt to determine whether chapter 13 bankruptcy is the next step to take. We never pressure clients, every choice you make is yours, we’re just here to help.
Filing for chapter 13 bankruptcy is a big decision, one that we understand the gravity of. We’ll help educate you on the potential benefits of filing and leave the decision up to you so that you can take all the time you need. When you leave our offices, you’ll have a greater understanding of chapter 13 bankruptcy than you walked in with, so you can make the call.
When you’ve decided that it’s time, we can file almost immediately, ensuring that the process takes as little time as possible, so you can get back to concentrating on the more important aspects of your life. The most immediately identifiable aspect of chapter 13 bankruptcy is that it is a reorganization of assets, as opposed to chapter 7 bankruptcy, which is a liquidation of assets.
There are many reasons why a person may choose to file; these are the most common.
Where Chapter 7 bankruptcy is a liquidation, Chapter 13 bankruptcy give individuals who have who have regular income the opportunity to pay back their debts over time. Typically, the debtor will propose a payment plan and the court will approve it. The timeframe usually allotted is up to five years, but it can be extended on a case-by-case basis. Then, debtors pay a trustee who distributes that money to the debtor’s creditors.
Filing for chapter 13 bankruptcy stays on an individual’s credit report for 7 years, in contrast, a chapter 7 bankruptcy can stay on a credit report for a full decade. Filing chapter 13 can immediately stop foreclosure for the term of repayment; it can also allow for a “super discharge” of debts, the kind that are not allowed under chapter 7 bankruptcy. Furthermore, chapter 13 can allow for debt to be modified and brought down by reducing interest.
Chapter 13 allows for the debtor to create a plan that details the treatment of debts, liens, assets and liabilities that are either owed or owned by the debtor. The plan clearly details when creditors will be repaid and ensures that those creditors will recoup at least as much as they would through a chapter 7 liquidation. A chapter 13 plan lays out a timeline for creditors to be repaid in 5 years or less, sometimes in as little as 3 years.
Once a plan is approved, debtors have 30-45 days to begin payments. In that time, creditors are not allowed to contact the debtor or take any action on their debts.
Those who file Chapter 13 bankruptcy, usually, have simply run out of means to keep themselves afloat in unexpectedly treacherous financial waters. Think of it less as a way out and more of way to consolidate debt.
Debtors file a petition with the bankruptcy court serving his or her jurisdiction. Then, the person filing will provide information such as a schedule of assets and liabilities, current income and expenses, information about contracts and leases, and a statement of financial affairs.
Again, think of it as a consolidation loan. If you feel as though you are suffering because of too much debt that you can’t pay off, call us here at Cibik & Cataldo PC and we will provide the guidance you need in the filing for bankruptcy process in Philadelphia County, PA.
Cibik & Cataldo P.C., is located in Center City, Philadelphia, easily accessible from anywhere around Philadelphia County, including Bucks, Montgomery, Delaware and Chester Counties. Cibik & Cataldo P.C. has handled more than 20,000 clients and established themselves as trusted legal guides for more than two decades. Whether you have a few questions about whether filing chapter 13 bankruptcy is right for you or are looking for car repossession lawyers, we’re available to help.
Contact us today to start taking your life back from debt.
“Prompt, courteous, and professional service.”
By: Mike S.
March 3, 2017
We are a debt relief agency that helps people
seek bankruptcy protection under federal law