Colmar, PA – March 10, 2016 – As many as 1% of individuals in the United States files for bankruptcy in a year. It is one of the most tumultuous private legal proceedings an individual can be involved in. William D. Schroeder, Jr., Attorney at Law, has a long history of helping Philadelphia residents during bankruptcy proceedings, and presents the following quick FAQ about bankruptcy.
Who can file for bankruptcy?
Nearly anyone with outstanding debts can file for bankruptcy. It is always recommended to consult a good Philadelphia bankruptcy attorney to guide you through the difficult legal process.
What is the difference between Chapter 7 and Chapter 13?
These are the two types of bankruptcy filed by private citizens. Under Chapter 7, the debts are mostly or entirely discharged. Under Chapter 13, the filer is put on a court-ordered payment plan to repay a portion of their debts over the course of 3-5 years.
What are the downsides to filing for bankruptcy?
Having one or more bankruptcies on file can potentially harm a person’s credit score for as many as 10 years, impacting the ability to receive more credit, make major purchases such as houses, or can even harm their job application prospects. William D. Schroeder, Jr., a Philadelphia bankruptcy attorney, can advise clients regarding all legal options available. Many times a future lender will provide a good loan in as little as 2 or 3 years after filing.
Will I lose my retirement or social security if I file chapter 7?
No. Social security and retirement accounts are protected in a bankruptcy filing. In addition, a chapter 7 bankruptcy filed by a senior is usually considered a “no asset” bankruptcy because there are few assets, many of which are exempt. If you are able to exempt everything, the trustee has no assets to sell to pay your creditors. You will keep everything you own.
How often can an individual file for bankruptcy?
Another Chapter 7 can be filed eight years after a previous Chapter 7, or six years after filing Chapter 13. A second Chapter 13 bankruptcy can be filed shortly after a previous Chapter 13 is discharged.
What property can be kept during bankruptcy?
Generally, your home and personal belongings, jewelry, vehicles, necessary tools-of-trade, and retirement funds will be protected, up to certain amounts determined by state law.
About William D. Schroeder, Jr., Attorney at Law
William D. Schroeder, Jr., Attorney at Law has more than three decades of experience in bankruptcy, mortgage, estate, family planning, and DUI cases in Montgomery, Bucks, Berks, Chester, and Philadelphia counties. He combines consummate professionalism with skillful knowledge of Pennsylvania law.
For information or to schedule a consultation, please call 215-822-2728 or visit https://www.jrlaw.org/.