Philadelphia-based bankruptcy law firm specializing in Chapter 7 and Chapter 13 filings, foreclosure prevention, and debt relief for individuals and small business owners.
Data compiled from public sources · Rating from CreditDoc methodology
Cibik Law, P.C. is a long-established bankruptcy law practice located in Center City Philadelphia with over 40 years of operational history. The firm is led by Attorney Michael A. Cibik, Esq., who holds American Board of Certification (ABC) in bankruptcy law—a credential indicating he has met rigorous professional standards in the field. The practice has filed well in excess of 18,000 personal bankruptcy cases throughout its history, serving clients across the Greater Philadelphia area and surrounding communities.
The firm offers a comprehensive range of bankruptcy and debt relief services tailored to individuals and small business owners. These include Chapter 7 bankruptcy filings, Chapter 13 bankruptcy reorganization, mortgage foreclosure prevention, debt settlement and relief consultation, and medical debt relief services. The firm explicitly states it does not represent banks, finance companies, or insurance companies—only individual consumers and small business owners. All consultations are offered free of charge with no pressure to retain services.
Cibik Law distinguishes itself through its stated commitment to compassionate client care and accessibility. The firm emphasizes creating a judgment-free environment for clients facing financial distress, walks clients through all available options, and provides post-bankruptcy financial guidance. The lead attorney's ABC certification is presented as a differentiator that helps clients identify counsel meeting objective professional standards. The firm's four-decade presence in Philadelphia is positioned as evidence of expertise in state and local bankruptcy laws.
The practice appears legitimate and appropriately focused on its core competency. However, consumers should note that this is a legal services provider requiring direct attorney engagement—it is not a low-cost debt management option. The firm's significant case volume (18,000+ filings) suggests operational capacity, but individual case outcomes depend on personal financial circumstances and are not guaranteed by past performance. Bankruptcy filing typically involves court fees and attorney fees beyond consultation.
Consumers considering bankruptcy should also explore alternatives. Debt relief programs may negotiate settlements for less than owed, while debt consolidation loans can simplify payments. Credit counseling agencies offer free financial assessments. After bankruptcy, rebuilding credit through secured credit cards and credit builder loans provides a structured path back. Credit repair services can help ensure accurate reporting. After discharge, qualifying for an installment loan can begin rebuilding payment history on your credit report.
Yes. Cibik Law, P.C. is a registered company, headquartered in Philadelphia, PA.
Cibik Law, P.C. plans start at Free per month with no setup fee. No money-back guarantee is offered.
Results vary by individual situation. Contact the provider to discuss expected timelines for your specific needs.
CreditDoc Diagnosis
Cibik Law is best for Philadelphia-area individuals and small business owners who have decided bankruptcy may be necessary and need experienced legal representation to navigate Chapter 7 or Chapter 13 filing. The primary caveat is that this is a paid legal service requiring attorney fees in addition to court costs—it is not appropriate for consumers seeking low-cost debt management, debt settlement negotiation without bankruptcy, or those who have not yet determined whether bankruptcy is the right solution for their situation. Prospective clients should contact the firm for a free consultation to understand fees and confirm their financial situation warrants bankruptcy filing before committing.
Columbus-based bankruptcy and estate planning law firm offering Chapter 7 and Chapter 13 bankruptcy representation, plus wills, trusts, and powers of attorney since 1978.
Best for: Columbus-area residents facing wage garnishment, vehicle repossession, or foreclosure who need immediate legal intervention, Individuals with significant tax debt to the IRS seeking bankruptcy relief combined with tax resolution strategy
Atlanta-based bankruptcy law firm specializing in Chapter 7 and Chapter 13 filings, debt relief, and estate planning with 40+ years of experience.
Best for: Georgia residents facing Chapter 7 or Chapter 13 bankruptcy filing, Seniors and military veterans seeking cost-effective bankruptcy representation
Jacksonville-based bankruptcy law firm offering Chapter 7 and Chapter 13 filing services, foreclosure defense, and real estate law with nearly a decade of attorney experience.
Best for: Florida residents in the Jacksonville area facing Chapter 7 or Chapter 13 bankruptcy filing needs, Homeowners in foreclosure proceedings requiring legal defense and representation
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Read guide →New to credit and lending? Here are the key terms used on this page, explained in plain language with real-number examples.
When you fail to repay a loan according to the agreed terms — usually after 90-180 days of missed payments. It's the point where the lender gives up on collecting normally.
Default triggers severe consequences: credit score drops 100+ points, the debt may be sent to collections, you could be sued, and your wages or assets could be seized.
Example
You miss 4 consecutive car payments. The lender declares your loan in default, repossesses your car, sells it at auction for $8,000, and you still owe the remaining $5,000 (called a deficiency balance).
A federal agency created in 2010 to protect consumers from unfair financial practices. They write rules, supervise financial companies, and handle consumer complaints.
The CFPB is your most powerful ally against predatory lenders. Filing a complaint with them gets a response from the company within 15 days — companies take CFPB complaints seriously.
Example
A debt collector calls your workplace after you told them to stop. You file a CFPB complaint online. Within 15 days, the collection agency responds and agrees to stop. The CFPB tracks complaint patterns across all companies.
A federal law that limits what debt collectors can do. They can't call before 8am or after 9pm, can't harass you, can't lie, and must stop contacting you if you request in writing.
Knowing your FDCPA rights stops abusive collection tactics. If a collector violates the law, you can sue for up to $1,000 per violation plus attorney fees.
Example
A collector calls your workplace 3 times after you told them not to. That's 3 FDCPA violations. You hire a consumer attorney (free — they get paid by the collector). The collector settles for $3,000.
A court order that requires your employer to withhold part of your paycheck and send it directly to a creditor. Usually happens after a creditor sues you and wins a judgment.
Federal law limits garnishment to 25% of disposable income. Some states have lower limits. Student loans and taxes can be garnished without a court order.
Example
You owe $8,000 on a defaulted credit card. The bank sues, gets a judgment, and garnishes your wages. On a $3,000/month net paycheck, they take $750/month until the debt is paid.
A time limit (typically 3-6 years, varies by state) after which a creditor can no longer sue you to collect a debt. The debt still exists, but they lose the legal power to force payment.
Knowing your state's statute of limitations prevents you from being tricked into paying debts that are legally uncollectable. Beware: making a payment can restart the clock.
Example
You have a $3,000 credit card debt from 2019. Your state has a 4-year statute of limitations. In 2024, a collector calls demanding payment. The statute has expired — they cannot sue you.
A type of bankruptcy where you keep your assets but follow a court-approved 3-5 year repayment plan to pay back some or all of your debts. Stays on credit for 7 years.
Chapter 13 is better than Chapter 7 if you have a home or assets you want to keep. It can stop foreclosure and let you catch up on mortgage payments over 3-5 years.
Example
You're 3 months behind on your mortgage and have $30,000 in credit card debt. Chapter 13 stops foreclosure and puts you on a 5-year plan: you pay $600/month to catch up on the mortgage and pay 40% of the credit card debt.
A type of bankruptcy that wipes out most unsecured debts (credit cards, medical bills) by liquidating non-exempt assets. It stays on your credit for 10 years.
Chapter 7 gives you a fresh start but at a steep cost: 10 years on your credit, difficulty getting loans, and you may lose assets. Income must be below your state's median to qualify.
Example
You have $45,000 in credit card debt and earn $35,000/year. Chapter 7 erases the debt. You keep exempt property (basic car, household items). Your score drops to ~500 but you're debt-free.
When a creditor declares your debt a loss after 180 days of nonpayment and removes it from their books. But you still owe the money — they just stop expecting to collect it themselves.
A charge-off is one of the most damaging entries on your credit report and stays for 7 years. The debt is usually sold to a collection agency who will pursue you for it.
Example
You stop paying your $4,000 credit card. After 180 days, the bank charges it off and sells the debt to a collector for $800. The collector now contacts you demanding the full $4,000 (they profit from what they collect above $800).
When an unpaid debt is transferred or sold to a third-party collection agency that specializes in recovering the money. Collection accounts appear on your credit report for 7 years.
Even a $50 collection account can drop your score 50-100 points. Some newer FICO models (FICO 9) ignore paid collections, but many lenders still use older models.
Example
An old $200 gym bill goes to collections. It appears on all 3 credit reports and drops your 720 score to 640. Paying it helps with newer scoring models but under FICO 8 (still widely used), a paid collection still hurts.
Combining multiple debts into one single loan with one monthly payment, ideally at a lower interest rate. It simplifies repayment and can reduce total interest.
Consolidation works best when you get a lower rate than your existing debts. But it doesn't reduce what you owe — and extending the term can mean paying more total interest.
Example
You have: $5,000 at 22% (credit card), $3,000 at 18% (store card), $2,000 at 25% (payday loan). A $10,000 consolidation loan at 11% saves you ~$2,100 in interest over 3 years.
Negotiating with creditors to accept less than the full amount you owe — typically 40-60 cents on the dollar. Usually done after you've already fallen behind on payments.
Settlement can save thousands, but it severely damages your credit (settled accounts show for 7 years) and the IRS may tax the forgiven amount as income.
Example
You owe $15,000 on a credit card and negotiate a settlement of $7,500 (50%). You save $7,500 but: your credit drops 100+ points, the account shows 'settled' for 7 years, and you may owe taxes on the $7,500 forgiven.
The percentage of your monthly gross income that goes toward paying debts. Lenders use it to judge whether you can afford another loan payment.
Most lenders want DTI below 36% for personal loans and below 43% for mortgages. Above that, you're considered overextended and likely to be denied.
Example
You earn $5,000/month gross. Your debts: $1,200 mortgage + $300 car + $200 student loans = $1,700/month. DTI = 34%. A new $400/month loan would push you to 42% — risky for lenders.
A court ruling that says you legally owe a specific amount to a creditor. It gives the creditor power to garnish wages, freeze bank accounts, or place liens on your property.
Judgments are enforceable for 10-20 years (varies by state) and can be renewed. They give creditors far more collection power than a simple unpaid debt.
Example
A credit card company sues you for $8,000 and wins a judgment. They can now garnish 25% of your paycheck ($750/month on a $3,000 net salary) and freeze your bank account.
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