The Philadelphia Bankruptcy Attorney: 2018

Tuesday, December 11, 2018

Will I Have To Go To Court?

In most bankruptcy cases, you only have to go to a proceeding called the “meeting of creditors” to meet with the bankruptcy trustee and any creditor who chooses to come.

Most of the time, this meeting will be a short and simple procedure where you are asked a few questions about your bankruptcy forms and your financial situation.

Occasionally, if complications arise, or if you choose to dispute a debt, you may have to appear before a judge at a hearing.

If you need to go to court, you will receive notice of the court date and time from the court and/or from your attorney. Call me for a free consultation at (215) 551 7109.

Please visit our website for more information at www.thephiladelphiabankruptcyattorney.com.

Chapter 7 (Fresh Start Bankruptcy)

In a bankruptcy case under chapter 7, you file a petition asking the court to discharge your debts.

The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for “exempt” property which the law allows you to keep.

In most cases, all of your property will be exempt. But property which is not exempt is sold, with the money distributed to creditors.

If you want to keep property like a home or a car and are behind on the mortgage or car loan payments, a chapter 7 case probably will not be the right choice for you.

That is because chapter 7 bankruptcy does not eliminate the right of mortgage holders or car loan creditors to take your property to cover your debt.

If your income is above the median family income in your state, you may have to file a chapter 13 case. Higher-income consumers must fill out “means test” forms requiring detailed information about their income and expenses. If the forms show, based on standards in the law, that they have a certain amount left over that could be paid to unsecured creditors, the bankruptcy court may decide that they cannot file a chapter 7 case, unless there are special extenuating circumstances.

Call me for a free consultation at (215) 551 7109.

Please visit our website for more information at www.thephiladelphiabankruptcyattorney.com.