Whitehall Bankruptcy Lawyer

Filing for bankruptcy is never an easy decision, but it might be the solution you need for your financial issues. There is more than one way to file, and a lawyer is needed to help you decide which chapter works best for you. Our legal team can help you assess your finances and get your bankruptcy case started.

The bankruptcy code contains several chapters designed to help people facing different financial struggles. Many people file under Chapter 7 or 13, as they are largely intended for individuals. Filing your case requires we submit a petition to a federal bankruptcy court. The automatic stay imposed by the court can help us deal with creditors and bill collectors while your petition is pending. If you are unsure about filing for bankruptcy, consider your circumstances. Many file because of medical debts, unemployment, or significant financial mistakes.

Contact our Allentown, PA bankruptcy attorneys for a free, private evaluation of your case by calling Young, Marr, Mallis & Associates at (215) 701-6519.

Your Bankruptcy Options in Whitehall

There is more than one way to file a bankruptcy petition. Numerous federal chapters exist to help people with bankruptcy, and each chapter might suit different needs and circumstances. Generally, individuals prefer to file under Chapter 7 or 13, but our bankruptcy attorneys can advise you on other chapters that might better fit your specific situation.

Chapter 13 Bankruptcy

According to 11 U.S.C. § § 1322(a), Chapter 13 bankruptcy involves petitioners developing a rigorous yet feasible payment plan with the help of their attorney. Pending approval by the court and creditors, the payment plan should help you make payments on various debts over time. Many petitioners are on a Chapter 13 payment plan for 3 to 5 years, depending on the circumstances.

Typically, if your petition and payment plan are given the green light, you do not have to worry about losing properties or assets like your home and vehicle, at least not right now. If you complete the payment plan successfully, the court may discharge certain remaining debts, leaving you more able to pay the important bills, like your mortgage and car payments.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a bit faster but often comes at a greater cost to petitioners. According to § 726(a), when a person files for Chapter 7 bankruptcy, their assets, accounts, and properties may be liquidated by a bankruptcy trustee appointed by the court. The trustee may seize assets – which we must report to the court when we file the petition – and sell them to pay back as much of your debt as possible.

Once the liquidation process is complete, the court may discharge other remaining debts. While you might lose much of your valuable assets, there is a chance that you can emerge from the situation debt-free or at least with debts that are far more manageable.

Alternative Bankruptcy Chapters

While Chapters 7 and 13 are among the most popular choices for individuals, they are not the only options. For example, Chapter 11 bankruptcy is designed for businesses. If your business is declaring bankruptcy, this might be the chapter for you. Still, other chapters are designed to help people in other situations. Talk to your attorney about your situation so that you choose the best chapter to help you.

What to Expect After Filing for Bankruptcy in Whitehall

After you file for bankruptcy, the court may impose an automatic stay under 11 U.S.C. § 362(a). The automatic stay is a court order that stops creditors, lenders, or others you owe debts to from taking legal action against you. This means creditors cannot sue you for unpaid debts or even contact you about making payments. This can be a lifesaver for those threatened with legal action by angry creditors.

Also, when we file your petition, we must report all your accounts, assets, and finances. If anything is left out, the court will not be pleased. The court needs to know your financial situation to ensure you are eligible for bankruptcy. You might also have to pass something called a “means test.” If the court believes you have the means to pay your debts, you might not be approved for bankruptcy.

We should also be prepared to deal with creditors. When a person files for bankruptcy, creditors sometimes try to call or even use intimidation tactics to get the person to pay. They know that the debts might be discharged soon, and they are making last-ditch efforts to get whatever money they can. Tell your lawyer if any creditors contact you, as they are not supposed to do so while the automatic stay is in place.

Reasons You Might Want to Consider Filing for Bankruptcy

One fairly common reason behind many bankruptcy cases is sudden injuries or illness. A bad car accident or sudden change in your health might leave you unable to work for a while. Some people are already financially precarious when this happens, while others might have some savings to fall back on. In either case, a long-term illness or injury might take a serious financial toll. Not only are you racking up big hospital bills, but you might not have an income, and paying all your bills might be impossible. Bankruptcy might help you get medical debt discharged.

Another possibility is that you were laid off from work and are having difficulty finding a new job. Unemployment is not unusual in today’s economic climate, and people often struggle to find new work. The longer you are without a job, the more your bills pile up. If you are still unable to find work despite your best efforts,

Although it might be hard to admit, some people file for bankruptcy because of financial mistakes. You might have bitten off more than you can chew. This is a fairly common problem, and you should not feel ashamed. Maybe you purchased a home that is just a bit too expensive to afford each month. Maybe you bought a new car, assuming a higher-paying job is around the corner, only to find it was not. Mistakes happen. We all make them. Bankruptcy might help you solve financial mistakes to get your life back.

Call Our Whitehall Bankruptcy Lawyers to Get Your Case Started

Contact our bankruptcy attorneys for a free, private evaluation of your case by calling Young, Marr, Mallis & Associates at (215) 701-6519.