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Hazleton, PA Bankruptcy Attorney

Managing your finances can be hard in this economic climate. Even if you have a decent income, your everyday needs are becoming more and more expensive thanks to things like inflation. If you are having trouble staying afloat and your debts continue to grow, it might be time to speak to an attorney about filing for bankruptcy. While this sounds like a bad thing, bankruptcy is meant to be a solution to your problems.

Filing for bankruptcy requires a formal petition filed with a bankruptcy court. If your petition is granted, the court will work on your case according to whatever bankruptcy child you filed under, and soon, you may have a fresh financial start. People often file for bankruptcy because they have encountered unexpected expenses they cannot keep up with, or they have overextended their finances. Whatever your reason, bankruptcy is not intended as a punishment for financial mistakes. Speak to an attorney about your bankruptcy options, as there are numerous chapters to explore.

For a private case assessment to begin your petition, call our bankruptcy lawyers at Young, Marr, Mallis & Associates at (215) 701-6519.

How Petitioning for Bankruptcy in Hazleton, PA Can Help You

People often perceive bankruptcy as a legal penalty or punishment for making bad financial decisions. This could not be further from the truth. While bankruptcy has certain drawbacks, it is meant to be a solution to your financial problems, not a punishment. Whether or not bankruptcy is a good option for you depends on your specific situation.

If you file for bankruptcy with the help of our bankruptcy lawyers, we can work with the courts to hopefully have certain debts discharged. When a bankruptcy court discharges a debt, the bankruptcy petitioner is no longer liable for payment. For example, if the court discharges your credit card debt, you do not have to pay back your credit cards, and the credit card company cannot come after you for payment. This can be extremely helpful to petitioners trapped under debts they cannot afford to pay.

However, not all debts are eligible for discharge. Generally, debts related to alimony and child support, debts for certain kinds of taxes, and student loans from the government usually cannot be discharged. However, debts for things like credit cards, medical bills, utility bills, and even business debts may be discharged.

Depending on how you file for bankruptcy, it can be difficult to get through. As detailed below, many petitioners see their prized possessions and assets liquidated to pay their debts. However, when it is all over, you may have a fresh financial start. Also remember, recovery after bankruptcy is possible.

Why People Often File for Bankruptcy in Hazleton, PA

A big reason people are often hesitant to file for bankruptcy or even consider it as an option is shame. Again, people mistakenly believe bankruptcy is a punishment, and they worry about friends, family, or neighbors discovering their money troubles. In reality, many people file for bankruptcy because of issues beyond their control.

A common reason behind many bankruptcy petitions is the sudden loss of employment. Perhaps the company or business you worked for went under. Maybe they had to lay off some employees, and you were let go. Whatever the reason is, losing a job can be tough, and finding a new one is not always easy. Many people spend months or longer between jobs, and falling behind on bills or other debts can be easy.

Another possibility is that you suddenly incur very large debts and cannot afford to pay them. One of the most common examples is medical debt. Maybe you became very ill and needed costly treatment. Maybe you were in an accident and needed emergency surgery. Medical debts are known for being very substantial, and paying them can be difficult, especially if your injuries or medical condition make it hard to work.

For some, bankruptcy is necessary because they unfortunately mismanaged their finances. Do not feel ashamed about this as it is a very common problem, and financial mistakes can be extremely easy to make. Simply overspending or failing to save enough money might be contributing factors in your bankruptcy case. Fortunately, there is always time to learn money management skills.

Your Options for Bankruptcy in Hazleton, PA

There are multiple ways in which a person may file for bankruptcy, and each bankruptcy chapter is designed to fit different needs. As such, it is important to talk to a bankruptcy lawyer about your situation to determine which chapter works for you. Chapters 7 and 13 are among the more common choices for individual petitioners, although others exist.

Chapter 7 Bankruptcy

One popular option is to file for Chapter 7 bankruptcy. Under this chapter, the court may appoint a bankruptcy trustee to your case who will take stock of your property and assets before liquidating them. Proceeds from liquidating your property will then be used to pay as much of your debts as possible. According to 11 U.S.C. § 726(a), payment may be distributed according to which creditors have priority. Under § 727(a), the court may discharge some other debts that cannot be paid back. In many cases, Chapter 7 bankruptcy petitioners are completed within a few short months.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is also designed for individual petitioners but does not involve the liquidation of assets or property. Instead, according to § 1322(a), this chapter requires petitioners to devise an aggressive yet feasible payment plan to repay their debts over time. Manny Chapter 13 petitioners spend about 3 to 5 years on their payment plans before their cases are complete. This may be a larger time commitment, but it may help you avoid losing any property or assets you do not want to give up, like your home and vehicle.