What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy wipes out (“discharges”) your debts. Chapter 7 is the bankruptcy provision most frequently used by individuals. It involves the complete liquidation of a debtor’s property to pay creditors and wipes out the remaining debts, giving the debtor what’s known as a “fresh start”.  The whole Chapter 7 bankruptcy process takes about three to four months, costs $299 in filing and administrative fees, and commonly requires only one trip to the courthouse.

Are You Eligible for Chapter 7?

Visit the following website to determine if you are eligible to file Chapter 7 Bankruptcy. http://www.legalconsumer.com/bankruptcy/nolo/

The bankruptcy law determines your income by looking at your household income during the six full calendar months before your bankruptcy filing. The following is brief summary of who is eligible to file Chapter & Bankruptcy in Pennsylvania:

1 # of people in Household: $3,700 per month or $44,396 annually

2 # of people in Household: $4,464 per month or $53,572 annually

3 # of people in Household: $5,626 per month or $67,516 annually

4 # of people in Household: $6,466 per month or $77,590 annually

5 # of people in Household: $7,041 per month or $84,490 annually

You may have noticed already that changing the number of persons in the household dramatically affects the median income figure.  For your information, all children, dependents and anyone that lives with you that you take care of can be included in the household number.

Chapter 7 Bankruptcy wipes out (“discharges”) your debts. Chapter 7 is the bankruptcy provision most frequently used by individuals. It involves the complete liquidation of a debtor’s property to pay creditors and wipes out the remaining debts, giving the debtor what’s known as a “fresh start”.  The whole Chapter 7 bankruptcy process takes about three to four months, costs $299 in filing and administrative fees, and commonly requires only one trip to the courthouse.

Dunne Law Offices, P.C.

1500 John F Kennedy Boulevard, Suite #200

Philadelphia, PA 19102

(215) 854-6342 (Office)

http://www.dunnelawoffice.com

http://www.dunnelawoffices.com

http://www.thephiladelphiabankruptcyattorney.com

http://www.bestphiladelphiabankruptcyattorney.com

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Chapter 7 Reaffirmation Agreement

Chapter 7 Reaffirmation Agreement

Reaffirmation agreement is a contract entered into during a Chapter 7 bankruptcy case which stops the particular debt from being discharged.  It creates an obligation to repay that debt after the bankruptcy case is completed.

Typically, only secured debts are reaffirmed in order to allow the debtor

to retain the collateral.  Under the amendments to the Bankruptcy Code, secured creditors can treat the filing of the bankruptcy as a default and use that as a basis to repossess their collateral (such as an automobile) after the bankruptcy case is over, if applicable state law allows it.  As a result, the only sure way to keep a secured motor vehicle or other personal property is to enter into a reaffirmation agreement.

However, there is a big downside to reaffirmation agreements, namely that if you fail to make the required payments, not only can the creditor repossess its collateral, but the debtor will also owe whatever is left on the balance of the reaffirmed debt.

The upside is that the majority of vehicle creditors will allow debtors to just stay current and maintain their payments without entering into a reaffirmation agreement.

Additionally, if a debtor attempts to ratify a reaffirmation agreement and the judge denies it, then the debtor should be able to retain the collateral and make payments because they have done all that is required of them by the bankruptcy code.

Dunne Law Offices, P.C.

1500 John F Kennedy Boulevard Suite #200

Philadelphia, PA 19102

(215) 854-6342

http://www.dunnelawoffice.com

http://www.dunnelawoffices.com

http://www.thephiladelphiabankruptcyattorney.com

http://www.bestphiladelphiabankruptcyattorney.com

Philadelphia Bankruptcy Attorney

The Dunne Law Offices offers customized bankruptcy solutions to businesses and individuals. We strive to deliver excellent service in a timely and cost-effective manner. Our goal is not merely to meet clients’ expectations, but to exceed them, by offering:

  • Experienced & Sophisticated Attorneys: All our clients will be represented by highly skilled and dedicated attorneys who provide a level of sophistication and a value proposition that is unmatched.
  • Industry Expertise: Our clients appreciate working with attorneys who understand the specific characteristics of their industries.
  • Reasonable Rates: We are conscious about the cost of legal services. Our rates are competitive and significantly less than the competition.
  • Innovative Technology: The firm utilizes cutting edge technology to reduce costs and improve the quality of legal services.

At Dunne Law Offices, our lawyers and legal staff strive to ensure that our clients receive top rate legal representation to all their legal problems. Our attorneys practice Bankruptcy Law and have a wide variety of experience that can be applied to any legal matter. No matter what legal issue you are facing, a lawyer at our Philadelphia Law Firm can provide you with whatever legal support you need.

To speak directly, one on one, with an experienced and knowledgeable Philadelphia Bankruptcy Lawyer, please contact the Dunne Law Offices at (215) 854-6342. We offer a free initial consultation for all consumer bankruptcy matters.

The Dunne Law Offices, P.C. is a debt relief agency. The Dunne Law Offices, P.C. helps people file for bankruptcy relief under the bankruptcy code

Dunne Law Offices, P.C.

(215) 854-6342
1500 JFK Blvd, 2 Penn Center, Suite 200
Philadelphia, PA 19102
www.dunnelawoffices.com