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

Macungie, PA Bankruptcy Lawyer

Big life changes might bring financial struggles you did not anticipate. In these situations, filing for bankruptcy can give debtors the opportunity to regain control over their financial security.

Bankruptcy can help debtors erase dischargeable debt, such as medical and credit card debt. It can also give debtors a way to repay non-dischargeable debts without risking property repossession, wage garnishment, mortgage foreclosure, or other debt-collection tactics. We may negotiate with lenders before filing the bankruptcy petition, though they might be more inclined to negotiate after we file your petition. When dealing with harassment from creditors, debtors can get relief from an automatic stay, which should take effect when they file petitions with the court. If your income is too low and your expenses are too great for Chapter 13, our lawyers may help you proceed with a Chapter 7 bankruptcy filing, making sure to use exemptions as necessary to protect specific assets from liquidation.

Call Young, Marr, Mallis & Associates for a free case review from our bankruptcy lawyers at (215) 701-6519.

Deciding Whether to File for Bankruptcy in Macungie, PA

Choosing whether or not to file for bankruptcy is a massive decision that could affect your future financial stability. We can help you make this decision by reviewing your dischargeable and non-dischargeable debts and gauging creditors’ willingness to negotiate. Those dealing with harassment from creditors can file bankruptcy to get relief from the automatic stay, which typically goes into effect after debtors submit bankruptcy petitions to the court. Debtors can benefit similarly from bankruptcy when facing potential wage garnishment or mortgage foreclosure.

You Have Dischargeable Debt

Those dealing with considerable dischargeable debt, like credit card or medical debt, should know they can be erased during bankruptcy. Dischargeable debts for Chapters 7 and 13 vary slightly, and our bankruptcy lawyers can identify which debts of yours are erasable.

When debts are discharged during bankruptcy, debtors have no obligation to repay them. Because of this feature of bankruptcy, there are limits on how many times debtors may file back-to-back, so to speak. According to 11 U.S.C. § 727(a)(8), debtors must wait eight years after receiving a bankruptcy discharge to file another Chapter 7 case, as Chapter 7 is the most popular bankruptcy type for debt discharges. This is so debtors do not accrue tons of dischargeable debts just to file for bankruptcy and get them erased.

You Have Secured Non-Dischargeable Debts

Having non-dischargeable debts is also a reason to file for bankruptcy. Though these debts cannot be totally erased, bankruptcy can give debtors a way to repay debtors without dealing with constant pressure from creditors or lenders. Debts that are not dischargeable include outstanding mortgage payments and other secured loans, like car loans. Missing your monthly mortgage payments could put you at risk of foreclosure in Macungie. Bankruptcy stops ongoing mortgage foreclosure processes, including sheriff’s sales, giving debtors the relief they need to organize their finances. When planning to address secured, high-priority, and non-dischargeable debts, our lawyers will arrange them in order of importance. If you file Chapter 13, we can use this information to inform the repayment plan we write and submit to the court for approval. This repayment plan will be your guide to addressing debt, complete with payment dates and amounts based on your income and expenses.

Creditors Refuse to Negotiate

Before deciding on bankruptcy as the path forward, our lawyers may gauge creditors’ willingness to negotiate the amount you owe or the current payment terms. Lenders and creditors often want to avoid bankruptcy proceedings, as they might have less control over when they get repaid, among other matters. When speaking with creditors before bankruptcy, our lawyers may negotiate lesser interest rates, lower monthly payments for longer repayment periods, or other terms to help all parties resolve the matter without going through bankruptcy proceedings in court. However, if creditors refuse to negotiate or discuss alternative arrangements, pursuing bankruptcy will force them to the table, so to speak, and we can negotiate with them in that setting.

Creditors Are Harassing You

Debtors are no strangers to harassing calls or communications from creditors. Knowing you are behind on payments is one thing; being repeatedly reminded or pressured to repay is another thing altogether. When dealing with harassment from creditors, debtors can file bankruptcy petitions and get relief from the court in the form of an automatic stay. This is a court order instructing creditors not to contact a debtor for repayment or take actions to repossess their property outside of the bankruptcy case. If creditors continue contacting you, inform our lawyers, and we will inform the court.

Creditors Threaten to Garnish Your Wages

Wage garnishment is only permitted in certain situations, such as when debtors owe child or spousal support, student loans, certain taxes, and unpaid rent on residential leases. Typically, lenders or creditors need the court’s approval to garnish wages or bank accounts, and the amounts they can garnish depend on the debts owed.

Wage garnishment can make it harder for debtors to repay other debts, as it means that less money is coming in. The automatic stay that comes with bankruptcy also stops any wage garnishment efforts by creditors, even if they are in progress. Suppose creditors threaten to get a court order for wage garnishment. In that case, we can respond by preparing your bankruptcy petition and submitting it so that the automatic stay takes effect before wage garnishment does, giving you your full income to work with when determining how to repay creditors.

Your Income is Low

When debtors’ incomes are low for households of their size, and they do not have considerable assets or property, repayment can be much harder. Bankruptcy can offer the most relief to creditors in these situations, as they will likely file Chapter 7 bankruptcy, which involves liquidation and a debt discharge. We can determine if your income qualifies you for Chapter 7 by putting you through the means test. When progressing with liquidation bankruptcy, our lawyers can identify asset exemptions you can use to protect certain property, like your home or car.