Philadelphia Bankruptcy Lawyer

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Philadelphia Bankruptcy Lawyer

Can You File for Bankruptcy in Philadelphia?

A person’s capability to file bankruptcy depends largely on whether or not they are able to pay the creditors within a specified time limit. If a person or a married couple is facing difficulties in taking care of their monthly bills like rent and car payments or resorting to personal loans or credit cards, then bankruptcy can be filed. Whether you qualify for bankruptcy or not depends largely on your household size, household income, and other expenses of your household.

Bankruptcy under Chapter 13 may be an option if once you pay your monthly expenses that are necessary such as car payment, gas, food, clothing, cell phone, cable, mortgage, rent, and recreation then your remaining income can be used to pay a certain portion of your unsecured debts.

Such income is referred to as disposable income. If you want to know more about this kind of bankruptcy, also known as a reorganization bankruptcy or debt reorganization plan, then you can seek advice from a knowledgeable Bankruptcy lawyer in Philadelphia.

If you do not have disposable income to pay toward your debt, then you must consider taking help from a seasoned lawyer who would explain to you all about Chapter 7 bankruptcy. In Chapter 7 there is no repayment plan as there was in Chapter 13. You can file for bankruptcy under Chapter 7 if your income is less than the median income standards set by the family size. With this type of bankruptcy, an individual does not need to enter into a repayment plan for their creditors.

There are also more complex versions of bankruptcy, such as Chapter 11 bankruptcy, available to individuals in rare cases. However, this type of bankruptcy is more typically filed by businesses. Every case is unique, so if a person wants to apply for bankruptcy relief, they should discuss every perspective with a capable Philadelphia bankruptcy attorney. It is a great idea to sit down and create a plan with an experienced lawyer who has expertise in handling bankruptcy matters and will give you clarity on your financial situation.

Rental Property in Bankruptcy

If you are the owner of a rental property anywhere in the United States, the pandemic might have posed a challenge for you. Many property owners have struggled during the pandemic as a result of the rent moratoriums that prohibited them from collecting the money they were owed.

As per the National Association of Realtors, more than 40% of rental properties are not owned by large real estate organizations, but by mom-and-pop landlords who live nearby and handle and manage the property on their own. Most of these mom-and-pop landlords are dependent on the income gained through rents. These people use their rental income to pay their mortgages.

These property owners are going through tough times and facing problematic financial situations. They are considering bankruptcy now. Therefore, if you are one of those rental property owners who are choosing bankruptcy then it is essential to get more insights into your financial situation and your property. Consider seeking help from one of the reputable Philadelphia bankruptcy law firms.

If a person does not have a multi-family apartment, that does not mean he or she does not own a rental property. Any property that a person rents out, such as multi-unit buildings, commercial spaces, and other storage units can qualify a property owner for bankruptcy.

Chapter 7 Bankruptcy for rental property owners

Under Chapter 7 bankruptcy, also known as liquidation bankruptcy, the fundamental focus is completely on how to remove your debt load. This will help in making a fresh start for you. Due to this goal, your possessions, including your rental property, may be sold to give money to the creditors.

This will leave no debt on you. If a person pursues this type of bankruptcy, their personal home is exempted from being seized. This helps the families in getting a good start without going homeless. If this seems like an option for you, seek advice from a competent Philadelphia bankruptcy attorney who has complete knowledge about the laws governing bankruptcy.

Keep in mind that this exemption would likely not apply to any owned properties except personal homes. In some cases, wildcard exemptions may be available, but it may be difficult to use these exemptions on rental properties.

Chapter 13 in Bankruptcy helps the renters

In bankruptcy under Chapter 13, there are various good options for those who own rental property. As per bankruptcy law, your debt does not go away. However, the debt is refinanced into small manageable payments for a term of three to five years. The main focus is on clearing all the debt within the time specified, thereby allowing the debtor to keep their property.

To gain more understanding of bankruptcy under Chapter 13, an individual must consider taking help from a skilled bankruptcy lawyer in Philadelphia who will let you know the legal perspective of the situation. However, if you have debt on the rental properties then you can expect to clear it out. A lawyer will guide you throughout the process such as cramming down the overall value. This will ensure that you do not have to pay more than the value of the property.

If you have rental properties and you want aid from the federal and local programs then you might have to wait longer than you can to afford your mortgages. If you file for bankruptcy under Chapter 13 as a landlord, you can get rid of the debts while keeping your properties and achieving a safer future financially.

How Can A Bankruptcy Lawyer in Philadelphia Help in filing?

Filing for bankruptcy can be scary. However, consulting the right attorney will make your overall process smoother and will also assist you in achieving economic security in uncertain times.

Chapter 7 will be a great option for the property owners who want to get rid of debts whereas Chapter 13 bankruptcy will be a great option for the property owners who want to keep their assets intact.

Hiring a lawyer for your bankruptcy can be an intimidating process. If you are a property owner, a bankruptcy attorney in Philadelphia can help you protect your assets. You can contact a lawyer at our firm for more information about your bankruptcy case.

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