Bucks County & Montgomery County PA Bankruptcy Lawyer

Pennsylvania Bankruptcy Law Firm

It today's world, it is not unusual to find yourself buried in bills. While the economy is down, the cost of living is up, making it difficult to balance your needs with your income. If you feel as though your finances have turned upside down, filing for bankruptcy may be the best option for making a fresh start.

I am bankruptcy attorney Joshua Z. Goldblum. In my more than 25 years of experience representing individuals and families throughout Bucks County and Montgomery County, I have helped hundreds of clients stop home foreclosure, end wage garnishments, eliminate credit card debt and create a solid foundation for their future by filing Chapter 7 or Chapter 13 bankruptcy

Some of the other bankruptcy issues I can help with include:

What Can Bankruptcy Do for Me?

Bankruptcy can allow you to discharge, or eliminate, certain unsecured debts, such as credit card bills and medical bills. In a Chapter 7 bankruptcy, some of your possessions may be sold to pay your creditors. Any remaining dischargeable debt will be eliminated, leaving you with a clean slate. A Chapter 13 bankruptcy allows you to develop a court-approved payment plan to catch up on delinquent mortgage payments, while still eliminating remaining dischargeable debt once the plan is completed.

Will I Still Owe Secured Debts After Bankruptcy?

There is no clear cut answer to this question. The term ''secured debt" applies when you give the lender a mortgage, deed of trust or lien on property as collateral for a loan. The most common types of secured debts are home mortgages and car loans. The treatment of secured debts after bankruptcy can be confusing.

Bankruptcy cancels your personal legal obligation to pay a debt, even a secured debt. This means the secured creditor can't sue you after a bankruptcy to collect the money you owe.

But, the creditor can still take back their collateral if you don't pay the debt. For example, if you are behind on a car loan or home mortgage, the creditor can ask the bankruptcy court for permission to repossess your car or foreclose on your home. Or, the creditor can just wait until your bankruptcy is over and then do so. Although a secured creditor can't sue you if you don't pay, that creditor can usually take back the collateral.

For this reason, if you want to keep property that is collateral for a secured debt, you will need to catch up on the payments and continue to make them during and after bankruptcy, keep any required insurance and you may have to reaffirm the loan.

Will I Still Owe Other Debts?

When your bankruptcy is completed, many of your debts are ''discharged" or cancelled. However, not all of them will be. The following debts are among the debts that generally may not be canceled by bankruptcy:

  • Alimony (spousal support) and child support
  • Student loans
  • Money borrowed under false pretenses (fraud)
  • Tax debts
  • Criminal fines, including traffic tickets, penalties and restitution orders
  • Drunk driving injury claims

Bankruptcy and Credit

You will notice a few changes to your credit report after filing bankruptcy. One, your bankruptcy will be reported. This will stay on your credit report for 10 years. Additionally, your debts should show a zero balance, meaning you owe no additional payments. If they don't, you need to file a dispute with the credit reporting agency to fix the inaccuracy, as it could have a negative effect on your credit.Contact Joshua Z. Goldblum, Attorney at Law

Contact me by calling my office at 215-322-2745. I offer a free initial consultation to discuss your option for debt relief and what your financial life may look like after filing for bankruptcy.

My firm is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.