In today’s difficult economy, more people than ever before are finding themselves overwhelmed by mortgage payments, credit card debt and overall living expenses. For those that have fallen behind and are trapped underneath a pile of debt, filing for bankruptcy may be the best option for financial relief and to get a fresh start.
At the law office of Stanton C. Kelton, III, P.C., our attorney advises clients about potential solutions to their financial problems and assists in filing for bankruptcy when applicable. For more than 40 years, Mr. Kelton has provided quality representation to those burdened by mounting debt.
Chapter 7 Bankruptcy
Despite recent changes in the law that have made it more difficult for some people to file for Chapter 7 bankruptcy, Chapter 7 remains a powerful tool for families who qualify for Chapter 7, to obtain a discharge of their debts. Individuals and families who may potentially qualify are subject to something called a means test, calculating the discrepancy between their amount of dischargeable debt, income and living expenses. Stanton C. Kelton III an experienced bankruptcy lawyer will use that experience to help you qualify for Chapter 7, if applicable, and advise you of all your rights under the Bankruptcy Code.
Once eligible clients file a petition for Chapter 7, an automatic stay is put into place. This stops all creditor harassment and wage garnishment you may have been experiencing. All communication must go through your attorney – creditors are no longer authorized to contact you directly once they know you are represented by an attorney. After you file a Chapter 7, the trustee appointed by the Court will evaluate your assets. Under the Bankruptcy code, the law provides that you get certain “exemptions” in your property, in other words, property that is “exempt” or free from any claim of the trustee. Only if the value of those assets exceed such “exemptions” will the trustee be obligated to liquidate any property. Stanton C. Kelton III will be able to advise you whether you have sufficient exemptions to file a Chapter 7, or whether it might be more advantageous for you to file Chapter 13.
Chapter 13 Bankruptcy
The fundamental difference between a Chapter 7 and a Chapter 13 is that in a Chapter 13 in addition to filing with the Court basically the same forms you filed in a Chapter 7, you also file what is called a Chapter 13 Plan. The most powerful use of the Chapter 13 is to “cure” mortgage defaults and stop mortgage foreclosure sales, by paying through the bankruptcy court trustee your mortgage arrears over a period up to five years. To do this successfully you need to show to the Court that you have sufficient income to “fund” or pay on the plan. However you also need an experienced bankruptcy lawyer, to help guide you through bankruptcy and the confirmation process.
Chapter 13 is also a powerful tool for those persons who do not qualify for Chapter 7 because of their income, or in some cases simply want to pay something to their creditors. A Chapter 13 will freeze the interest on all those unsecured debts like credit cards, and convert ever increasing payments to multiple creditors, to one fixed payment to the trustee. Once you make those payments for 36 months up to 60 months you will receive a discharge just as in Chapter 7.
Contact an Experienced Philadelphia Area Lawyer
The decision to file bankruptcy is not an easy choice. We work to effectively assess your situation and determine if filing for bankruptcy is right for you. Remember too that Bankruptcy is not the only option to oppose the claims of creditors. We have over 40 years experience in civil litigation if the best option is to fight that foreclosure action or the claim of that collection agency in State Court. Contact our office by calling 215-968-4010 or 215-244-0633 to schedule a consultation.
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.