Huntingdon Valley Bankruptcy Lawyers

Most people dread the idea of filing for bankruptcy. While bankruptcy can be a challenging process, and it often comes up in cases where people are in dire financial straits, it should not be viewed as a punishment or penalty. Instead, bankruptcy is better viewed as a solution to your financial problems. Our legal team can help you determine the best way to file for bankruptcy so you can get your life back.

Some people file for bankruptcy because they were laid off and cannot find work. Others find themselves in sudden debt due to medical conditions. Filing for bankruptcy is like filing a lawsuit. We must submit your petition to a bankruptcy court, and the judge will review your case. Many people file for Chapter 7 or Chapter 13 bankruptcy. Each offers different pros and cons, and your lawyer can help you decide which works best for you. One major pro is the automatic stay imposed when the court accepts your case. Under the automatic stay, creditors cannot file legal action against you or contact you regarding unpaid debts.

Ask our bankruptcy attorneys for a free case review by calling Young, Marr, Mallis & Associates at (215) 701-6519.

Why Many People in Huntingdon Valley File for Bankruptcy

Bankruptcy is something most people try to avoid, so it can be hard to accept when bankruptcy becomes a necessary means to solve your debt problems. While many people view bankruptcy as a sort of legal penalty for financial mistakes, this could not be further from the truth. Bankruptcy is a solution that can help you.

Many people file for bankruptcy because they are out of work. Perhaps the business you worked for went under or downsized, and you were unfortunately laid off. Finding new work nowadays can be extremely challenging, and it is not unusual for people to go months or more between jobs. If your savings are exhausted and there is still no job on the horizon, you might want to consider bankruptcy.

Others might need to file for bankruptcy because of enormous medical debt. Injuries and illnesses can happen very suddenly, and many people are not ready for the staggering medical costs that come with treatment. This can feel overwhelming and unfair. People do not plan to get sick or hurt, and suddenly, they find themselves unable to afford their bills. Bankruptcy can help you eliminate medical debt so you can get your life back.

Another possibility is that you made some investments or business dealings that did not pan out as you had hoped. Doing business is risky, and risks do not always pay off. If you cannot absorb the losses, talk to a lawyer about filing for bankruptcy.

How to File for Bankruptcy in Huntingdon Valley

Filing for bankruptcy begins with a petition drafted by you and your attorney. How our bankruptcy lawyers draft your petition depends on which bankruptcy chapter you have selected for your case. For example, Chapter 7, as described below, focuses on liquidating assets, while Chapter 13 is about reorganizing debts into an aggressive payment plan. We need to show the court that your financial situation meets the criteria needed to be eligible for bankruptcy and that it may help your case. If bankruptcy is not helpful or necessary, the court may quickly reject your petition.

Additionally, we must make sure the correct court gets your petition. Not all courts are the same, and bankruptcy courts are separate from most state courts. Bankruptcy is a federal matter, and we must file your petition with the federal bankruptcy court. We can find the appropriate court with jurisdiction over your case and file your petition.

Preparing and filing your bankruptcy case may be challenging. Many who file for bankruptcy have complex finances that are difficult to articulate on paper. An experienced bankruptcy attorney can help you file your petition quickly and efficiently.

Chapter 7 Bankruptcy

Many individuals who file for bankruptcy choose to file under Chapter 7. This bankruptcy chapter, under 11 U.S.C. § 726(a), is often called liquidation bankruptcy because it involves liquidating various assets, accounts, or properties and using the proceeds to pay debts. In many cases, the bankruptcy court appoints a trustee to the case, and the trustee is in charge of reviewing the petitioner’s assets and the liquidation process.

If you have any assets or properties you do not want to be liquidated, we can talk to the bankruptcy trustee, but there is no guarantee that your assets will be saved. If necessary, all your property may be liquidated. It is important to consider your assets carefully and whether you are okay with losing them. Chapter 7 is often a great choice for people with little to no valuable assets or properties. If you rent your home and do not own any real property, you likely do not have much to lose. Also, Chapter 7 bankruptcy is often completed in just a few short months.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is another popular choice among petitioners, especially those who want to avoid liquidating their property. Under § 1322(a), petitioners filing for Chapter 13 bankruptcy do not have to liquidate anything. Instead, they and their attorneys must devise an aggressive payment plan to tackle their unpaid debts. Unlike Chapter 7, Chapter 13 lasts for several years. You might be on your payment plan for about 3 to 5 years before your case is complete.

This option can be great if you do not want to lose your valuable properties and assets. However, remaining on the payment plan for so many years can be challenging. If you ever fail to abide by the terms of the plan, the bankruptcy court might impose penalties.

Advantages of Bankruptcy

One of the biggest advantages of bankruptcy is the automatic stay under 11 U.S.C. § 362(a). This court order stops creditors and lenders from filing legal action against bankruptcy petitioners over unpaid debts. If any legal action is pending when the automatic stay is imposed, it must halt immediately. This includes mortgage foreclosures that might cost you your home.

Another advantage is that many of your debts may be discharged through the bankruptcy process. When debts are discharged, the petitioner is no longer liable for payment, effectively erasing the debt. However, not all debts may be eligible for discharge. While credit card debt and medical bills are often discharged, debts like student loans, certain tax debts, and support obligations like child support or alimony cannot be discharged.

Contact Our Huntingdon Valley Bankruptcy Lawyers

Ask our bankruptcy attorneys for a free case review by calling Young, Marr, Mallis & Associates at (215) 701-6519.