Philadelphia Bankruptcy

Law Firm Helping Clients Filing For Bankruptcy In Philadelphia, Pennsylvania

Philadelphia

Do you feel as though you are buried in bills? Have you had to use your credit cards just to cover day-to-day expenses? If so, you are in the same boat as many Americans these days. The tough economy, dismal job market and overall increase in the cost of living have led many people into a maze of debt that doesn't seem to have a way out.

Bankruptcy May Be The Solution You've Been Searching For

I am Philadelphia bankruptcy lawyer Joshua Z. Goldblum. For more than 25 years, I have helped Pennsylvania individuals and families throughout the Philadelphia area resolve financial worries through Chapter 7 and Chapter 13 bankruptcy. It is my goal to help each of my clients establish a fresh start that leads them down the path to a solid financial future.

In addition to the standard personal bankruptcy filings, I provide legal representation in a variety of bankruptcy issues, such as:

In addition, I assist clients with financial matters after the bankruptcy process, such as offering advisement on how to use credit wisely.

You don't have to face your financial crisis alone. I am here to help you understand your options and make decisions that uphold your best interests. Contact my Philadelphia office to learn how to get help with credit card debt and other financial obstacles.

Understanding Bankruptcy

Bankruptcy is a choice that may help if you are facing serious financial problems. You may be able to cancel your debts, stop collection calls and get a second chance at your future. Bankruptcy can help with some financial problems, but does not guarantee you will avoid financial problems in the future. If you choose bankruptcy, you should take advantage of the fresh start it offers and then make careful decisions about future borrowing and credit, so you won't ever need to file bankruptcy again!

Bankruptcy can seem like a complex process. Many people have misguided beliefs about what it can and cannot do for them. Understanding common bankruptcy myths — such as the myth that you will never restore your credit — can help you separate the fact from the fiction.

Chapter 7 Vs. Chapter 13 Bankruptcy

You made the decision to file bankruptcy, but now which chapter should you file under? In a Chapter 7 bankruptcy, some of your possessions may be liquidated 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 repayment plan over the course of three to five years. After the repayment period is complete, the remaining dischargeable debt will be eliminated.

How Long Will Bankruptcy Stay On My Credit Report?

The results of your bankruptcy case will be part of your credit record for 10 years. The 10 years are counted from the date you filed your bankruptcy.

This does not mean you can't get a house, a car, a loan or a credit card for 10 years. After you receive a bankruptcy discharge, any business that wants to do business with you can do so. The more relevant question may be — how much interest and fees will you have to pay? And, can you afford your monthly payments, so you don't begin a new cycle of painful financial problems?

Debts discharged in your bankruptcy should be listed on your credit report as having a zero balance, meaning you do not own anything on the debt. Debts incorrectly reported as having a balance owed will negatively affect your credit score and make it more difficult to get credit. You should check your credit report after your bankruptcy discharge and file a dispute with the credit reporting agency if this information is not correct.

Which Debts Will I Still Owe After Bankruptcy?

When your bankruptcy is completed, many of your debts are ''discharged." This means they are canceled, and you are no longer legally obligated to pay them. However, certain types of debts are NOT discharged in bankruptcy. The following debts are among the debts that generally may not be canceled by bankruptcy:

  • Alimony, maintenance, or support for a spouse or children.
  • Student loans. Very few student loans are canceled by bankruptcy. You can ask the court to discharge the loans if you can prove that paying them is an undue hardship.
  • Money borrowed by fraud or false pretenses. A creditor may try to prove, in court, that you lied or defrauded them so that your debt cannot be discharged. A few creditors accuse debtors of fraud even when they have done nothing wrong. Their goal is to scare honest families so they agree to reaffirm the debt. You should never agree to reaffirm a debt if you have done nothing wrong. If the company files a fraud case and you win, the court may order the company to pay your attorney's fees.
  • Most taxes. The vast majority of tax debts cannot be discharged. However, this can be a complicated issue. If you have tax debts, you will need to discuss them with your bankruptcy lawyer.
  • Most criminal fines, penalties and restitution orders. This exception includes even minor fines, including traffic tickets.
  • Drunk driving injury claims.

Additionally, creditors may still take back collateral on a secured debt if you do not pay it. Although bankruptcy cancels your legal obligation to pay back secured debt, such as a car loan or mortgage, the bank or lender can still request that you "pay" by giving back the property. For example, your lender may repossess your car or foreclose on your house. Understanding the treatment of secured debts in bankruptcy can be confusing, so it is important you seek the counsel of an experienced bankruptcy lawyer. Contact an experienced Philadelphia bankruptcy attorney.

Contact me, Josh Goldblum, to schedule a free initial consultation to learn more about your bankruptcy options. Call to make an appointment at 215-322-2745.

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