for Bucks County, Philadelphia County, and Montgomery County
If you are struggling with debt, you cannot pay and deal with constant creditor phone calls, letters, and legal threats, our law firm can help. Federal bankruptcy law provides people in this tough position with a process for a fresh financial start. Depending upon your situation, debt relief options include Chapter 7 or 13 bankruptcy.
Our Philadelphia Bankruptcy Lawyers at the law offices of Velter Yurovsky Zoftis Sokolson, LLC, are committed to assisting people throughout Bucks County, Philadelphia County, and Montgomery County to seek debt relief. Bankruptcy is not the only option available to resolve debt problems, but it has many benefits.
Benefits of Bankruptcy
One of the most significant benefits of filing for Chapter 7 bankruptcy is the discharge of debt. Unsecured consumer debts, such as credit card debt, medical bills, personal loans, utility bills, and similar debt, are discharged–gone forever.
Secured debt, such as a car loan, can be left in place or the terms of the loan renegotiated. As soon as you file bankruptcy, the bankruptcy court issues an "automatic stay." Once given, all debt collectors actions come to a complete stop. No more letters, calls or any other action can be taken against you.
Chapter 7 and Chapter 13 Bankruptcy
The type of bankruptcy you file will be based upon your income and the type of debt problems you are experiencing.
- Chapter 7–Also called a "straight" or "liquidation" bankruptcy, This is designed to allow a person to retain property up to a certain value. Most people who file Chapter 7 lose nothing—other than debt.
- Chapter 13 - If you are in mortgage trouble, this may be a solution. This form of bankruptcy can make it possible to keep your property. It involves presenting a structured payment plan to address back payments. Chapter 13 is appropriate for wage earners and property owners who have severe financial trouble.
Financial Impact: Rebuilding Credit After Bankruptcy
After filing for Bankruptcy, you can start the process of rebuilding your credit. Bankruptcy will affect your credit score. Many people filing for bankruptcy already have badly compromised credit by the time they file. After your bankruptcy is finalized and debt discharged, those debts will no longer be yours, which is a positive benefit for your credit.
Initially, you will only be able to get secured credit cards. If you continue to make all payments on time, your credit rating will begin to improve. Eventually, you will become eligible for other loans, particularly if you have no late payments in the future.
If you are considering bankruptcy, call the Philadelphia, PA bankruptcy law offices of Velter Yurovsky Zoftis Sokolson, LLC at 215-969-3004 for help on your case.
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