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Sharon Hill, PA Bankruptcy Lawyer

Entering bankruptcy can make some debtors feel as though they have failed when it comes to managing their finances. In reality, bankruptcy exists to provide relief and support to those facing serious financial issues in Sharon Hill.

There are many reasons why debtors in Sharon Hill might turn to bankruptcy when in financial distress. Having considerable dischargeable debt, facing mortgage foreclosure, and recent job loss are some of the top instigators of bankruptcy. When you file your bankruptcy petition, expect negotiations with creditors and lenders. Depending on the outcome of those negotiations, you might be able to reduce the amount you owe so that you can settle your outstanding debts in a timely fashion. If you are unsure whether or not your situation calls for bankruptcy, discuss your financial condition with our lawyers.

When you call Young, Marr, Mallis & Associates at (215) 701-6519, you can schedule a free review of your case with our Sharon Hill, PA bankruptcy lawyers.

Reasons to Declare Bankruptcy in Sharon Hill, PA

Although bankruptcy can seem like a last resort for many, it is a viable way to tackle your debt and move on with your life. There are a few main reasons why people might enter into bankruptcy in Sharon Hill. For example, if you have a lot of dischargeable debts, are facing mortgage foreclosure, or recently lost your job, declaring bankruptcy might be the best path forward for you.

You Have Dischargeable Debt

Dischargeable debts can be wiped away when a debtor enters bankruptcy. These debts, such as medical and credit card debts, are nonpriority and unsecured. So, if you have considerable credit card debt, which is very common, especially among young people, that can be erased during bankruptcy. Depending on the chapter of bankruptcy you file, your dischargeable debts will either be eliminated at the beginning of the process or after you complete a repayment plan. In rare cases, student loan debt can be dischargeable. Our bankruptcy lawyers can assess your case to determine if you can show undue hardship. If you can, your student loan debt might be erased in bankruptcy. Certain debts, such as child support and alimony, are not dischargeable in bankruptcy.

You Are Facing Mortgage Foreclosure

Missing mortgage payments can lead to foreclosure in Sharon Hill. When this happens, the bank can take your home, leaving you and your family without a place to live. All mortgage foreclosure proceedings happen through the courts in Pennsylvania. Our lawyers may be able to help you prevent mortgage foreclosure by negotiating with your lender and altering your current mortgage agreement. However, if you cannot cure your mortgage, foreclosure might take place. Bankruptcy halts all foreclosure proceedings, giving debtors time to rearrange their finances and repay their lenders. Even if a sheriff’s sale is impending, you can petition for bankruptcy to stop mortgage foreclosure in Sharon Hill.

You Lost Your Job

Losing your job can leave you in a vulnerable financial position. You might be unable to pay your bills, including your mortgage and credit card bills. If you cannot find a new job with a similar salary, you might find it difficult to sustain your previous quality of life. Bankruptcy can provide relief in such instances. Automatic stays go into effect when debtors enter bankruptcy, pausing all debt collection for the time being. If you have lost your job, you will likely qualify for Chapter 7 bankruptcy in Sharon Hill. This kind of bankruptcy requires asset liquidation. Using federal liquidation exemptions, our attorneys can help you protect certain assets, like your home and vehicle. Because dischargeable debts are erased at the beginning of Chapter 7 bankruptcies, you will be able to focus on repaying priority or secured debts. Bankruptcy might also be prudent in other instances of financial distress, such as following a divorce or separation.

What Happens When You File a Bankruptcy Petition in Sharon Hill, PA?

When you file a bankruptcy petition in Sharon Hill, it will be important to prepare yourself for the process to follow. Regardless of the bankruptcy chapter you file, the court will likely require negotiations with lenders and creditors. Then, repayment of debts will take place, and you will be able to exit bankruptcy debt-free.

Negotiations with Creditors

After you submit your bankruptcy petition and identify the bankruptcy chapter you are filing, the judge overseeing your case will likely require mediation. This will entail negotiations with creditors to lower your debt or the interest rate assigned to your debt. If you are struggling most with your mortgage payments, we can speak with your lender to rearrange your plan to satisfy all parties. Chapter 13 bankruptcies typically entail more lengthy negotiations as they require repayment of debts over a period of several years.

Repayment of Debts

In Chapter 7, dischargeable debts are erased immediately. If the entirety of your debt is dischargeable, you can eliminate it and exit bankruptcy. If you have additional non-dischargeable debts, you will repay them through asset liquidation. Our lawyers will identify the liquidation exemptions that you plan to use in your bankruptcy petition.

If you file Chapter 13 because your income is too high for Chapter 7, you will settle your debts via a repayment plan. Repayment plans are completed over a period of three to five years, depending on a debtor’s financial ability and the size of their debt. All debts are consolidated under the same interest rate, making repayment easier for debtors in Sharon Hill. After you have completed the repayment plan in full, dischargeable debts will be erased.

Once your debts are repaid, bankruptcy will remain on your credit report for several years. While this might be concerning to debtors, it is often preferable over living with insurmountable debt that continues to accrue over time, further hurting your credit score.