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Limerick, PA Bankruptcy Attorney

Bankruptcy can put an end to the financial struggles you are dealing with by addressing your debts and creditors head-on.

Consumers can typically file for Chapter 7 or 13 bankruptcy, depending on their incomes, types of debt, assets, and expenses. Chapter 7 best suits debtors who need a fast debt discharge, while Chapter 13 gives debtors several years to pay off creditors after consolidating debts under the same low interest rate. Regarding your debt, our lawyers must clarify how much you owe each creditor and give the court a list of creditors and their contact information. While we organize this information, you can take a mandatory credit counseling course, a prerequisite to filing for bankruptcy in Pennsylvania. Based on the chapter you file, our lawyers can anticipate how long your case might take to complete. At the longest, bankruptcy might take up to five years, and at the shortest, just a few months.

Call Young, Marr, Mallis & Associates at (215) 701-6519 for a confidential and free case assessment from our bankruptcy attorneys.

Steps Involved in Preparing Bankruptcy Petitions in Limerick, PA

First, we must determine which bankruptcy chapter, Chapter 7 or 13, will best allow you to address your debt. This will dictate whether we cite liquidation exemptions or write a repayment plan and how the rest of your case unfolds. Also, before filing, we must prepare a full list of creditors and debts and organize pertinent information related to your income, expenses, and assets.

Identify the Right Bankruptcy Chapter

To prepare your bankruptcy petition, we must identify which chapter best suits your situation. If most of your debts are dischargeable and your income permits, you can file Chapter 7. This bankruptcy chapter erases dischargeable debts within as little as four to six months. If your income, expenses, and debts make Chapter 7 the best option, our attorneys can also identify liquidation exemptions. We can cite exemptions in the bankruptcy petition to safeguard important assets like your home or car.

If your income is high enough to pass the means test, we can proceed with a Chapter 13 case. In Chapter 13 bankruptcy cases, filers must submit repayment plans to settle their debts within three to five years. Our bankruptcy attorneys can write these plans considering your income, expenses, and dependents so that you can repay creditors without facing further financial distress. In addition to not requiring asset liquidation, Chapter 13 consolidates debts under the same interest rate, making it easier for debtors to make payments without falling further behind.

List Your Debts and Creditors

Bankruptcy filers must also present a creditor matrix containing all creditors’ information. This matrix must be accurate, as it sets the foundation for your bankruptcy case and the parties involved. In addition to listing creditors, debtors must also provide a full list of the amounts they owe each creditor, and our lawyers can do this when preparing your petition, categorizing debts according to whether they are high priority or dischargeable.

Organize Relevant Financial Information

Bankruptcy cases involve a debtor’s full financial profile, so when preparing your petition, our attorneys will organize income statements verifying your wages, proof of monthly household expenses, the number of dependents who rely on you, and the overall income of your household. Debtors filing Chapter 7 must identify assets for liquidation and cite exemptions where possible, and our attorneys can assist with this before filing your petition with the court. This documentation can support our proposed repayment plans in Chapter 13 cases.

Careful preparation and organization are crucial during bankruptcy cases, as there may be many filings and court dates to keep track of. We can help debtors follow all necessary steps during their cases so they do not make any crucial mistakes that could affect their debt repayment.

Take a Mandatory Credit Counseling Course

Debtors in Pennsylvania must take credit counseling courses within 180 days before filing for bankruptcy. When you complete this course, you get a certificate, which our lawyers can file alongside your bankruptcy petition. Credit counseling is not only a prerequisite of bankruptcy, but it also provides debtors with useful money management tools they can put into practice to rebuild their credit after exiting bankruptcy.

Estimating the Length of Your Limerick, PA Bankruptcy Case

How long your case takes depends on several factors, like the chapter you file, your aggregate debt, and the number of creditors you have. Generally, the longest period a debtor can be under bankruptcy is five years.

This pertains to Chapter 13 cases, which take, on average, three to five years to finish. Chapter 13 cases take longer because they facilitate repayment without liquidating debtors’ assets, which is the alternative in Chapter 7. Instead of taking several years to finish, Chapter 7 cases typically end within four to six months of filing petitions.

If much of your debt is dischargeable, it will be erased after addressing non-dischargeable debts, meaning your case could end relatively quickly after filing. Furthermore, creditors might be open to negotiating alternative payment agreements or lower interest rates before bankruptcy, as avoiding this legal process often benefits creditors, who might want to avoid wasting time and resources on a bankruptcy case.

Another concern debtors often have is how long bankruptcy might remain on their credit reports. In general, Chapter 7 cases stay on credit reports for ten years from the filing date, whereas Chapter 13 cases remain on reports for about seven years. During this time, however, you can make real advancements toward improving your credit as you satisfy the requirements of your bankruptcy case. Furthermore, after you leave bankruptcy, you will be debt-free, giving you an opportunity to maintain your financial health in the future.