What Do You and The Greek Government Have in Common? Filing a Chapter 13 Bankruptcy in Montgomery County.

No the Greeks are not going to file a chapter 13 in Montgomery County but, One of the biggest stories in the news this week has been the Greek debt crisis. Greece was scheduled to repay the International Monetary Fund $1.7 billion on Tuesday after they were loaned this money during the 2008 Wall Street Financial Crisis.   Greece owes a significant amount of debt to European institutions and Eurozone countries.  In 2008, Greece admitted that it had been understating its deficit amounts; this caused serious ramifications sending Greece veering towards bankruptcy in 2010. To prevent Greece from becoming bankrupt, the International Monetary Fund, the European Central Bank and the European Commission gave the first of two international bailouts to Greece, totaling more than 240 billion Euros, or about $264 billion Dollars. These bailouts came with creditor imposed conditions including cutting spending, streamlining the government and ending tax evasion.  Although the US economy is rebounding, many people are in a similar position as the Greek government, they are under-employed or still without a job after being long term unemployed.  Despite much “stream-lining” both Greece and some Americans are still not able to pay their mortgages and/or creditors.

For instance, a homeowner is 3-4 months behind on their mortgage and they have been sent a letter called “Notice of Intention to Foreclose”  (also known as an Act 6 and Act 91 letter); even if they scrape together the money to pay a couple of months of their payments, the mortgage companies are not required to apply this money to the mortgage account unless ALL of the arrears are sent at once. They can send the payment back to you and demand the full payment due.  Needless to say, the IMF does not bail out the people of Montgomery, Bucks and Philadelphia counties by lending them money when they fall on hard times.  However, people in Montgomery, Bucks and Philadelphia counties have something better; chapter 7, 13 and me to represent you through this process.

A chapter 13 bankruptcy attorney can help you. Filing a chapter 13 bankruptcy divides debts into several categories. How much you must pay on each type of debt depends upon your individual circumstances. General unsecured claims are those debts that are not secured; they are credit card debt, medical bills, deficiency on repossessed cars and utility bills.  Bankruptcy law allows for priority debts; examples of priority debts include child support and certain (but not necessarily all) incomes tax debts. Secured debts most often include mortgages and car loans.

The creditors have to accept your secured debt payments when you file a chapter 13 bankruptcy because bankruptcy law gives you special protection that you cannot get elsewhere. When you come to see William D. Schroeder, Jr, he will create a chapter 13 payment plan that will be in your best interest.  The plan will lay out how much each creditor will get paid, how long the plan will last, the values of the debtor’s property, and more. This plan must be confirmed by the bankruptcy court in order for the case to proceed. The bankruptcy trustee and creditors can object to various aspects of the plan if it does not meet certain legal requirements; this is why it is vitally important to have an experienced attorney representing you and your interests. Don’t have the IMF lending you money!  Have something better, the representation of William D. Schroeder, Jr.  Call 215-822-2728 to make an appointment.