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Horsham, PA Bankruptcy Attorney

Money problems are extremely common, and most people have probably gone through tough times. Unfortunately for some, tough times can be too much to overcome, and they might have to file for bankruptcy. While bankruptcy sounds scary, it is only meant to help you. Bankruptcy can help people struggling financially escape their debts and get a new start.

Individuals filing for bankruptcy often file under Chapters 7 or 13. One helps you by liquidating assets and using the profits to pay debts. The other puts you on a strict payment plan so you can make good on your debts over time. Still, other chapters serve different needs, and an attorney can help you choose the one that fits your needs the best. Many resist filing for bankruptcy out of embarrassment, but the truth is that many file because of circumstances beyond their control, like the sudden loss of work or medical bills from an unexpected illness. Your lawyer can help you regain control of your finances and life.

Get a private assessment of your case for no cost from our bankruptcy attorneys by calling Young, Marr, Mallis & Associates at (215) 701-6519.

Your Bankruptcy Options in Horsham, PA

Filing for bankruptcy is not a simple process. First, you should meet with our bankruptcy attorneys and go over the many different bankruptcy chapters that might be helpful. How you file for bankruptcy will depend on various details about you and your finances. For example, the way you file for bankruptcy might be a lot different if you have more or fewer assets. Additionally, businesses file for bankruptcy under different chapters from individuals. Generally, Chapters 7 and 13 are popular for individual filers, but other chapters exist and might be worth discussing.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is often referred to as liquidation bankruptcy because it involves liquidating your properties and assets to pay your debts. The court typically appoints a bankruptcy trustee to evaluate the petitioner’s assets and begin the liquidation process. People often see their homes, vehicles, and other properties sold off, which can be painful but also necessary to regain financial control. Talk to your lawyer if there are assets you want to keep. We can take advantage of federal or state exemptions to try to protect some of your property. Chapter 7 is often a great option for people who have fewer assets to lose or do not mind parting with their property.

Chapter 13 Bankruptcy

Chapter 13 typically does not involve liquidating assets but instead focuses on restructuring and reorganizing debts and finances so that you can make timely payments. According to § 1322(a), people who file for Chapter 13 bankruptcy must work with their lawyers and the court to come up with a payment plan. The plan should be aggressive enough to help you keep up with payments while remaining feasible. Generally, petitioners must stick with their payment plans for about 3 to 5 years, and falling off the plan might come with unpleasant consequences. Chapter 12 might be a good option for those with greater assets and properties who do not want to lose them to bankruptcy.

Other Bankruptcy Chapters

If the above options do not fit your needs, discuss other bankruptcy options with our team. Other chapters exist and are designed to suit different petitioners with different needs. If you are unsure what your needs are in the bankruptcy process, your lawyer can advise you on what to do so you can make an informed decision about how to proceed.

When Bankruptcy Might Help You with Financial Troubles in Horsham, PA

People often feel a sense of shame or embarrassment when they start the bankruptcy process. Many perceive bankruptcy as a sort of badge of dishonor because it is widely (and mistakenly) believed that only people who make poor financial decisions file for bankruptcy. This is just plain false. People often file for bankruptcy due to reasons they cannot control.

A very common reason for bankruptcy petitions is medical debt. People who suddenly become injured or ill often deal with high medical bills related to treatment. Medical bills are notoriously expensive, and many people cannot afford to pay them. For many, they are only one bad accident away from financial ruin. If you are in such a situation, filing for bankruptcy can help you eliminate your medical debt.

Many other people file for bankruptcy because they lost their jobs. The workforce today can be unpredictable. One day, you are at work like normal, and the next, you are suddenly laid off with no new job prospects lined up. Many people live paycheck to paycheck, and any extended period of unemployment might be more than they can afford.

Still, some people have to file for bankruptcy because they have overextended their finances. It is extremely common for people to rack up huge credit card bills because they have costly spending habits. While this can be embarrassing, just remember that better spending habits and financial literacy can be learned, and you can avoid making future mistakes when it comes to money management. In the meantime, bankruptcy can help you with your debts.

Drawbacks to Bankruptcy and How to Deal with Them in Horsham, PA

Bankruptcy is a big help to many despite the misconceptions surrounding it. However, you should be aware of some of the drawbacks of bankruptcy so that you can make an informed decision about whether to file. Your lawyer can explain the ups and downs of bankruptcy.

First, your credit rating will probably dip significantly after you file for bankruptcy. A lower credit score might make it very hard to secure loans for future expenses. For example, you might be unable to get a loan for a car, home, or business. In this way, your future opportunities might be limited, at least for a few years.

You also might have to deal with losing assets and property. If you have to liquidate property to pay debts, you might lose your home, car, accounts, and other valuable assets. This experience can be very difficult for people who have worked long and hard to build up these assets, but it might be necessary for you to move forward.