Philadelphia Chapter 13 Bankruptcy Attorney
If you have a regular source of income, you may qualify for Chapter 13, also known as wage earners bankruptcy. Chapter 13 is also a common option for businesses looking for a fresh financial start.
Chapter 13 offers much more flexibility than Chapter 7, mostly because debt is fully or partially repaid. Of course, Chapter 13 filings are also more complicated. The basic properties of Chapter 13 filings include the following:
- Interest and penalties can be frozen
- Priority taxes (those less than three years old) can be paid through Chapter 13 without interest
- Options are available to settle tax liability that are not available in Chapter 7
There are a number of important advantages for those who qualify for Chapter 13:
- When a debtor is behind on payments to creditors who hold security, such as house or car payments, the past due payments can be put in the plan. This is very important if you are behind several payments and are unable to catch them up.
- With secured debt, like cars, the debtor only has to pay the creditor what the collateral is worth, not what is owed. This often happens in situations where a person owes more on a vehicle than it is worth. In these circumstances, the amount of interest is also reduced, which results in a savings.
- During the life of the Chapter 13 plan, debtors can pay tax liability for taxes that have a lien filed. These taxes can be reduced to the value of the debtor's assets and the balance is dischargeable if they are over 3 years old, even though a lien has been filed.
Clearly there are many benefits to filing chapter 13, but filing is more complicated than filing for Chapter 7. The Philadelphia Chapter 13 bankruptcy lawyers at Cibik & Cataldo, Attorneys at Law, can help determine if you qualify and use their financial expertise to walk you through the entire process.
The Chapter 13 process
To file a Chapter 13, you must have a regular source of income. In Chapter 13, a plan is filed with the bankruptcy court that provides for a certain amount of money to be paid into the plan and distributed to some or all creditors. The process requires that you submit detailed accountings of your current assets and debts, and you work with a court-appointed trustee and each creditor to work out a repayment plan, generally covering a period up to five years.
This is a very complicated process. Your best bet for a successful outcome is to retain a Chapter 13 bankruptcy lawyer. In Philadelphia, 25 years of bankruptcy law experience makes Cibik & Cataldo, Attorneys at Law, a good choice to achieve your restructuring goals.
Chapter 13 for businesses
Most of the same rules apply for businesses as for individuals. Taxes are often a considerable challenge to business owners who do not pay employment taxes. The trust fund portion of employment taxes is not dischargeable in bankruptcy. They may, however, be paid through the Chapter 13 plan. Often filing Chapter 13 enables a business to survive and successfully reorganize its debts and tax liabilities.
The key to developing the most beneficial reorganization plan is to retain the right Chapter 13 bankruptcy lawyers. In Philadelphia, Cibik & Cataldo, Attorneys at Law, have more than 25 years of bankruptcy law experience to help your business on the road toward a bright future.
Chapter 13 for sole proprietorship businesses
When a business has financial difficulties, there may be a shortage of cash flow to make current payments. Often businesses can survive if they are given a reasonable chance to reorganize. Chapter 13 bankruptcy is for sole proprietor businesses that are unable to pay their debts but could become profitable if given the opportunity to delay payments on debts and to reduce the amount of the debt. When equipment or vehicles are repossessed and the business needs those items to continue to operate, Chapter 13 allows some breathing room and gives the business an opportunity to propose a plan to reorganize.
When you retain Cibik & Cataldo, Attorneys at Law, you can be assured you have engaged an experienced Philadelphia bankruptcy lawyer. Pennsylvania laws are different than those in other states, and our attorneys have the local knowledge to ensure you have chosen the best options within the state.
Free initial consultation
If you are considering Chapter 13 bankruptcy as an option for your debt problems, make sure you choose Chapter 13 bankruptcy lawyers who understand the local laws and take the time to look at your individual personal or business situation to find the best solution for you. Contact the experienced attorneys at Cibik & Cataldo, P.C. We will help find the best fresh start you need and support you through every step of the process.
