Home » Bankruptcy Law » Pennsylvania Bankruptcy Lawyers » Chambersburg, PA Bankruptcy Attorney

Chambersburg, PA Bankruptcy Attorney

Most of us are likely carrying some debt, but it can easily get out of control. Often, people are overwhelmed by their debts due to circumstances beyond their control. Maybe you were injured and now have huge medical bills. Maybe you were laid off and no longer have an income. Filing for bankruptcy might be the debt solution you are looking for.

While filing for bankruptcy is often perceived as a legal penalty or punishment, it is intended to be a solution to debt troubles. While there are some disadvantages, bankruptcy can help you wipe out some of your debts and give you a fresh start, at least in a financial sense. How you file for bankruptcy depends on your needs and assets. Under Chapter 7, your assets may be liquidated to pay your debts. Under Chapter 13, you can devise an aggressive payment plan. Still, other chapters might suit your needs better. Talk to our legal team about your financial situation to determine if filing for bankruptcy is a good choice.

Call Young, Marr, Mallis & Associates at (215) 701-6519 and ask our York County, PA bankruptcy lawyers for a confidential review of your case at no cost to you.

How Filing for Bankruptcy in Chambersburg, PA Can Help You with Your Debt Problems

Bankruptcy is one of those things people would prefer not to talk about. While bankruptcy has a reputation for being intimidating and humiliating, it is actually intended to be a legal solution to financial problems. If you are in serious debt and cannot see a way out, speak to our legal team about how bankruptcy might help you.

Bankruptcy comes with several advantages and a few disadvantages. Whether or not bankruptcy works for you depends on whether the good outweighs the bad. One major upside is the automatic stay imposed by the court under 11 U.S.C. § 362(a). The automatic stay is a court order that prevents creditors from initiating legal action against you related to unpaid debts. This also means creditors cannot contact and harass you about making payments.

Downsides to bankruptcy may include a significant hit to your credit score. Your credit score may be used to determine whether future creditors and lenders will work with you. While your score may recover in time, it might be a while. You might have to put certain financial plans on hold until your finances and credit bounce back.

How to File for Bankruptcy in Chambersburg, PA

Bankruptcy is not a legal penalty applied to people who have made bad financial decisions. Bankruptcy is a judicial process that begins in federal bankruptcy court. It is like a lawsuit in many ways, and our bankruptcy lawyers must file a bankruptcy petition to get your case started. Different bankruptcy chapters are designed to suit the needs of different petitioners, and our team can advise you which chapter may work best for your case.

Chapter 7

According to 11 U.S.C. § 726(a), Chapter 7 bankruptcy involves liquidating assets, accounts, and properties. Once liquidated, the proceeds from the sale of these assets may be used by the court to pay your debts. For some, this is a fast and simple solution. Chapter 7 bankruptcy tends to be completed in only a few short months. It is a difficult process for others, as they do not want to lose their hard-earned asset and properties.

If you have significant assets, talk to our team about whether Chapter 7 is a good fit for you. It might be possible that we only need to liquidate some of your assets to pay your debts. In other cases, bankruptcy petitioners lose everything, but they get a fresh financial start at the end of the process. On top of that, the court may discharge certain remaining debts, meaning you would no longer be liable for paying them, and creditors cannot come after you for payment.

Chapter 13

If you would rather not risk losing your valuable assets to liquidation, you might want to explore Chapter 13 bankruptcy. According to § 1322(a), petitioners filing for Chapter 13 bankruptcy must develop a payment plan with the help of their lawyer to help them catch up with their debts. The plan should be pretty aggressive yet feasible and realistic relative to your income. Most people who file under Chapter 13 remain on strict payment plans for about 3 to 5 years. While this is a lengthy process, you do not have to liquidate your property or assets if you complete the payment plan.

Other Chapters

Chapters 7 and 13 are some of the most popular bankruptcy chapters for individual petitioners, but other options are available. If neither of these chapters suits your needs, speak to our team about other chapters. Some chapters are designed for businesses rather than people. If you are filing for bankruptcy for your business, you might need an entirely different chapter.

How Do I Know if Bankruptcy Can Help Me in Chambersburg, PA?

It is normal for people to resist the idea of bankruptcy. However, you should give serious consideration to your current financial situation and whether bankruptcy will help you despite its potential drawbacks.

First, think about how much debt you have. Different bankruptcy chapters may have different debt thresholds you have to meet before you are even eligible to file. If your debts are too large for you to afford currently but not large enough to qualify for bankruptcy, your attorney can discuss other options with you.

You should also think about your income. Maybe your debts are fairly manageable, but you are out of work and cannot afford them. A better solution might be finding a new source of income rather than filing for bankruptcy. Maybe you might have a steady income but your debts are so high you cannot possibly afford them.