Avallone Law Associates has been designated by the United States Congress as a "Debt Relief Agency"
Philadelphia, Pennsylvania, Bankruptcy Attorney
Chapter 7 and Chapter 13 are federal bankruptcy laws enacted by Congress to give single and married individuals (including owners of sole proprietorships) in financial difficulty a fresh start or relief from creditor harassment. Chapter 7 allows individuals to discharge (and not pay) most debts, including credit card debt, judgments, unsecured loans and much more. Filing under Chapter 7 normally allows you to keep your assets and then start over. Chapter 13 allows individuals to work out reasonable repayment terms for their debts.
At the current rate of nearly 4,500 bankruptcy filings every business day, total bankruptcies filed by 2009 are expected to reach 1.2 million. To sort your way through the complicated maze of overcrowded bankruptcy courts you need the assistance of knowledgeable legal advocates with years of experience and demonstrated trustworthiness.
The attorneys at Avallone Law Associates has represented many individuals throughout Southeastern Pennsylvania before the bankruptcy court. Our attorneys are highly experienced in Chapter 7 and Chapter 13 bankruptcies. They efficiently and cost-effectively help their clients get back on solid economic ground. We work closely with clients, making sure that bankruptcy is their best alternative, and then move quickly on your behalf. The firm is committed to providing personal attention and affordable solutions to every client's financial obstacles.
Contact the attorneys at Avallone Law Associates about your bankruptcy needs or problems with creditors. You will receive a prompt and personal response from one of our attorneys.
Call Us Now at 215-253-3855 or toll free at 877-223-0579 for a Free, Initial Phone Consultation. We are able to meet the needs of Spanish-speaking and Russian-speaking communities.
An Overview of Bankruptcy
Even the hardest workers and the most careful money managers can find themselves with more debts than they can pay as they become due. In such cases, filing bankruptcy may provide a solution to what seems like an insurmountable problem. If you or someone you know is facing serious financial challenges, it is very important to seek the counsel of an experienced bankruptcy attorney. Bankruptcy is an accepted method of resolving serious financial problems recognized in the constitution of the United States. Our skillful attorneys can guide you through the complicated legal maze of bankruptcy.
Bankruptcy law is federal in origin and varies little from state to state. The United States Constitution grants to Congress the power to establish uniform bankruptcy laws throughout the United States, which ensures consistency and predictability in how bankruptcy proceedings are conducted. The individual states do, however, retain jurisdiction over certain debtor-creditor issues that are not addressed by and do not conflict with federal bankruptcy law, such as which property remains exempt from creditors' claims.
Consumer Bankruptcy
When an individual falls desperately behind in his or her debt payments, one option may be to declare bankruptcy, a legal proceeding conducted in a federal bankruptcy court that allows the debtor to be relieved of most or all of his or her debts. Although bankruptcy can give a person a fresh start, bankruptcy may also negatively affect a debtor's credit rating and may make it harder to obtain credit in the future. One of the attorneys at Avallone Law Associates, experienced in bankruptcy law, can advise you whether bankruptcy is appropriate in your situation.
Surviving the Emotional Effects of Bankruptcy
Bankruptcy is often needed because of divorce or separation medical bills caused by illness or injury, a job loss, or other stressful situation. No matter what circumstances led to filing bankruptcy, the practical and the emotional impact on the debtor will be huge. Confronting the emotional and psychological issues surrounding bankruptcy and reaching an understanding and acceptance of the situation are essential to rebuilding and maintaining a successful financial life. The bankruptcy attorneys at Avallone Law Associates can guide a debtor through the complicated legal, financial, and emotional maze of bankruptcy and steer him or her in the right direction for the future. Contact our office for help.
If the debtor's financial problems are temporary, the lawyers of Avallone Law Associates can negotiate with creditors to accept lower payments or with an extended payment schedule. Creditors may be receptive to these ideas when by one of our experienced attorneys and know they are receiving much less in credit counselors can also creditors work out a repayment plan. Some of these advisors work for non-profit agencies and charge only small fees, but others charge hidden fees or may even be unscrupulous and should therefore be avoided.
A Chapter 13 bankruptcy discharges most debts, but only those provided for by the plan. A Chapter 13 discharge does not discharge outstanding debts or ongoing obligations for spousal and child support; most educational loans; drunken driving liabilities; and criminal fines and restitution obligations. Many long-term obligations that extend beyond the term of the plan, such as home mortgages are also not discharged although a Chapter 13 bankruptcy plan is often used to reinstate delinquent mortgages by bringing them current.
NEW BANKRUPTCY LAWS:
Bankruptcy is a federal court process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies are generally being described as liquidation or reorganization. Proceedings under a liquidation bankruptcy (Chapter 7), a claimant files to eliminate debt through the bankruptcy court. Under a reorganization bankruptcy (Chapters 13), a claimant files a plan with the bankruptcy court proposing to repay creditors, at least in parts.
As of October 17, 2005, the requirements to be a debtor under Chapter 7 changed when the Bankruptcy Abuse Prevention and Consumer Protection Act and become effective. Debtors must seek budget and credit counseling not more than six months before filing, financial "testing" is required to determine the debtor's capacity for debt repayment. A relief under Chapter 7 is not available the household income is greater than the state median household income. Due to the limitations on Chapter 7 bankruptcy under the new laws, debtors who were formerly eligible to file under Chapter 7 no longer have that option. Many debtors will choose to file a Chapter 13 bankruptcy instead, in which individuals propose a plan for court approval that requires some or all debts be repaid over five years. Bankruptcy filings will continue to be recorded on an individual's credit report for seven years in the case of Chapter 13, and up to ten years for Chapter 7.
CHAPTER 7 BANKRUPTCY:
Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, or a partnership. Under Chapter 7, the debtor is allowed to claim certain property exempt. In exchange for this, the debtor gets a discharge, which means that the debtor does not have to pay certain types of debts, typically unsecured debt, such as credit cards, medical bills, and other ordinary liabilities.
CHAPTER 13 BANKRUPTCY:
Chapter 13 permits individuals to keep their property by repaying creditors from their future income. Each chapter 13 debtor proposes a repayment plan that must be approved by the court. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.
PENNSYLVANIA DEBT CONSOLIDATION:
Debt consolidation is a process in which debt is restructured into one low monthly payment. It sometimes enables a consumer to reduce the amount owed reduce monthly payments and reduce or eliminate interest.
Very often a consumer can detect warning signs of being in too much debt long before any collection notices are received. If more than two of the following signs apply to you, it is best to contact, to discuss your debt consolidation options:
- You have begun charging to your credit card essential expenses like food and daily expenditures
- You are making only the minimum payments on your credit cards each month
- You are near the limit of your credit cards
- You have too many credit cards
- You are unsure how much money you owe creditors
Find answers to other bankruptcy questions by visiting our Bankruptcy FAQs page.
Call Today: 215-253-3855 or toll-free at 877-223-0579
For over 25 years, the attorneys at Avallone Law Associates have represented families and individuals, ensuring that they are treated fairly and that their rights are protected. Our law practice is based on the concept that ordinary people deserve the same access to quality legal representation that major corporations, insurance companies and the government have always had. When clients come to us they are facing a financial crisis and they want to resolve a stressful situation in an efficient manner. We can respond quickly to their needs so that they can get back to their lives.
If you or someone you know in Philadelphia, Pennsylvania, or in the surrounding cities and counties needs debt consolidation legal counsel or the assistance of a knowledgeable bankruptcy attorney, contact our law firm for a free initial consultation.
