Home » Bankruptcy Law » Pennsylvania Bankruptcy Lawyers » Haverford, PA Bankruptcy Lawyer

Haverford, PA Bankruptcy Lawyer

People often resist filing for bankruptcy. They might feel embarrassed or ashamed or believe bankruptcy is a punishment for poor financial management. The truth is that bankruptcy is not a punishment but a solution to serious debt problems.

You might want to talk to an attorney about filing for bankruptcy if you have very high debts and your income is not enough to keep up. Perhaps you are only making minimum payments. Meanwhile, interest continues to accrue, leaving you in deeper and deeper debt. If you decide to file for bankruptcy, you have multiple options. Chapter 7 bankruptcy is a common option and involves liquidating assets to pay debts. Chapter 13 is another common choice that allows people to reorganize their debts into a feasible payment plan. Still, there are numerous other bankruptcy chapters worth exploring. Which one is right for you depends on your unique circumstances and financial situation.

Speak to our bankruptcy lawyers at Young, Marr, Mallis & Associates by calling (215) 701-6519 and ask for a free evaluation of your situation.

When Bankruptcy Might Be a Good Option in Haverford, PA

People do not often talk openly about the bankruptcy process. As a result, many people do not know when they should begin to think about bankruptcy as a possible solution to their financial troubles. If you are in debt and have trouble making payments, talk to a lawyer about the possibility of bankruptcy.

One factor you should consider when thinking about bankruptcy is your debts. Bankruptcy is not intended to help those with minor debts. For example, a few thousand dollars in credit card debt likely would not qualify you for bankruptcy, even if you are having a hard time paying it. Larger debts, such as mortgages, car payments, and significant medical debt, are more likely to qualify you for bankruptcy.

Next, our bankruptcy attorneys can review your income. Bankruptcy might be a good choice if your income is not enough to keep up with your debts. Even people earning substantial incomes might overextend their finances and find themselves unable to keep up with minimum payments. Even high-income earners file for bankruptcy sometimes.

We should also discuss whether you have defaulted on one or more loans or lines of credit. Being behind on payments is one thing, but defaulting on a loan, line of credit, or mortgage is serious. Call our team immediately if you have defaulted or believe you might be in default soon.

How to File for Bankruptcy in Haverford, PA

Bankruptcy is a more complex process than some people realize. Talk to your lawyer about your bankruptcy options, as you might have more than a few. Different bankruptcy chapters are suited for different kinds of people and situations. Finding the one that suits your case best is important.

Chapter 7 Bankruptcy

One of the most commonly selected bankruptcy chapters is Chapter 7. This is often referred to as liquidation bankruptcy. A bankruptcy trustee appointed to your case can liquidate your property and assets to pay your debts. Which assets are seized and sold depends on what assets you have and whether they are exempt. If there is any property you wish to hang on to, talk to your lawyer about whether it is exempt from the bankruptcy process.

Chapter 7 bankruptcy is a bit quicker compared to Chapter 13, as described below. It usually only takes a few months to complete, although it can be a tough few months. Once it is over, you can focus on rebuilding your credit and finances and starting over fresh.

Chapter 13 Bankruptcy

Another very common bankruptcy choice is Chapter 13. While Chapter 7 focuses on liquidating assets and property, Chapter 13 is more about reorganizing debts and restructuring your financial situation. Since property is not seized and liquidated under Chapter 13, it is a popular option among those who want to keep their homes, vehicles, and other important assets.

Under Chapter 13, you and your lawyer would come up with an aggressive yet feasible payment plan to get your debts under control. The court must approve the plan, and creditors are allowed to object. Once your plan is approved, you must stay on top of it for several years at least. When the payment plan is completed, the court may discharge some remaining debts.

Other Bankruptcy Chapters

While Chapters 7 and 13 are some of the more commonly chosen bankruptcy options, they are not the only ones. There are many other chapters and options worth exploring, depending on your needs. For example, other chapters are designed specifically for businesses filing for bankruptcy. If that is the case, talk to our team about what options work best for you.

Determining Which Bankruptcy Option is Best for Your Situation in Haverford, PA

With so many bankruptcy options, it can be hard to determine which one suits your needs and financial situation the best. Talk to a lawyer to figure out which option is the right one.

What do your finances look like? If you are a high-income earner, Chapter 13 might be a good fit for you. With a more significant income, you might be better able to keep up with a rigorous payment plan so you can avoid losing your home and other property.

Do you have any assets? If you do not have significant assets or do not mind parting with assets, Chapter 7 might be a good fit for you. Whatever assets you have may be liquidated, and any remaining debts might be discharged.

How quickly do you want to complete the bankruptcy process? Some people just want to get it over with so they can move on. Others want to take their time to hopefully minimize their losses. Your lawyer can help you select a bankruptcy option that suits your desired schedule or time frame.