A Philadelphia Attorney Answers Your Bankruptcy Questions
For over thirty years, Alfred M. Abel has served the Philadelphia area as a bankruptcy attorney for both personal and business bankruptcy filings. Alfred Abel Law Offices is here to help you understand issues surrounding bankruptcy, and ensure the best possible outcome for your bankruptcy case.
Below, we answer some of the most common bankruptcy questions we hear.
Personal Bankruptcy Answers
- What is involved in personal bankruptcy?
The process begins with a consultation with a bankruptcy lawyer, who will explain your options. The case will be filed in court and a trustee is appointed to review your case. A means test will be applied to evaluate whether you can repay your debts and if so, at what rate. After the completion of a successful case, the court will order the discharge of some of your unpaid debts. Not all debts can be discharged. A Philadelphia bankruptcy attorney will work with you to ensure that you get the best possible outcome for your case.
- What types of bankruptcy can I file for?
Typically, individuals can either file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 is sometimes called a “liquidation” bankruptcy – if you have assets in excess of what you are allowed to protect, they may be sold to pay off your debts, and the rest is discharged, meaning those creditors can’t sue you in court to get paid. Chapter 13 is considered a “consumer reorganization,” allowing you to keep your assets, catch up on mortgage, car or other defaulted payments, and pay off your debts over time.
Business Bankruptcy Answers
- Does filing business bankruptcy affect my personal finances?
In most cases, no. Since your business is a legally distinct entity from yourself, a business bankruptcy will normally be kept separate from your personal affairs. Some exceptions do apply.
- What are the differences between Chapter 7, 11, and 13?
Chapter 7 will involve the dissolution of your company, using its assets to pay off a percentage of your debts and discharging the rest. Chapters 11 and 13 both allow your business to continue operation while you are paying off the debts, but chapter 13 is only for individuals in business, not for corporations, limited liability companies or other business entities. Chapter 11 allows more flexibility than chapter 13, but is more expensive, and is designed for bigger businesses or for individuals with substantial assets. Chapter 13 is generally seen as preferable for smaller, owner operated businesses.
Get Help from Alfred Abel Law Offices
In the event you believe you are facing bankruptcy, you will want qualified and experienced representation to help you complete the often-confusing process. Having a skilled and knowledgeable attorney on your side is a great advantage. Contact Alfred Abel Law Offices for more information and bankruptcy answers.