Telford Bankruptcy Lawyer

You have likely heard of bankruptcy, but you might not know much about it unless you have filed before. People often avoid bankruptcy because they believe it is a sort of punishment for making financial mistakes, but this is not true. Bankruptcy is a legal solution to your financial struggles, and our lawyers can help you get started.

People file for bankruptcy for all kinds of reasons. Some file because of large expenses they cannot keep up with, like mortgages. Others file because, over time, their debts have grown larger than their income can keep up with. Still, others simply find it extremely difficult to find work. Individuals often file for Chapter 7 or 13 bankruptcy, although other chapters exist and might be helpful in other situations. To begin, our legal team can help you file a petition in federal bankruptcy court. The judge may impose an automatic stay to prevent creditors from taking legal action against you while your bankruptcy case is pending.

For a free, private case evaluation to begin, call our bankruptcy lawyers at Young, Marr, Mallis & Associates at (215) 701-6519.

Reasons Why People File for Bankruptcy in Telford

People file for bankruptcy for all sorts of reasons. Many assume that bankruptcy is only for people who are financially careless or make enormous mistakes with money, but this could not be further from the truth. Our bankruptcy lawyers often help people file for bankruptcy because of reasons out of their control, and bankruptcy can help them solve certain financial problems.

Unpaid Mortgages

A big reason many people file for bankruptcy is because they have lost control of very large debts, such as mortgages. You might be stretched financially thin because the home you bought is too expensive. You might have overestimated how far your income would go, and now you are so far behind that you are afraid of losing the house. This is not an uncommon problem, and bankruptcy might help you.

Depending on how you file for bankruptcy, you might be able to liquidate certain properties or assets to repay your outstanding debts. If you can make good on delinquent mortgage payments, foreclosure might be unnecessary. Alternatively, you might instead use the bankruptcy process to set up a payment plan to help you repay various debts, as described in more detail below.

High Debts Compared to Income

Maybe your problem is not with one large debt but numerous smaller debts. You might have to pay monthly bills for credit cards, medical bills, utilities, mortgages, car payments, student loans, and more. As the debts pile up higher and higher, you might find yourself unable to keep up. This is common, as debt is one of those things that sneaks up on you.

Your lawyer can help you take stock of your debts and assets and determine whether bankruptcy can help you. Some of these debts might be discharged through bankruptcy, meaning you would no longer be liable for payment. The more debts you have discharged, the better you might be able to regain control over your finances.

Unemployment

In today’s economy, finding work can be incredibly difficult. If you are unlucky enough to be laid off from your job, your next job might not exactly be just around the corner. It is not unusual for people to spend months looking for a job. As you continue job-searching, your savings may start to dwindle, and keeping up with debts may become impossible. Although it is tough to accept, bankruptcy might be your way out. This might be especially important for those not laid off from work but unable to work due to an illness or injury.

Deciding Which Bankruptcy Chapter is Right For You in Telford

You might have more options for bankruptcy than you think. Numerous federal bankruptcy chapters are designed to help people facing different financial problems. While some chapters are intended to help individuals, others are meant specifically for married couples, and others still are intended for businesses. Your lawyer can advise you on which chapters are likely to help you.

Chapter 7

Chapter 7 is a popular choice among individuals filing for bankruptcy. This chapter is often referred to as liquidation bankruptcy because it focuses on selling off your assets and properties to repay outstanding debts. According to 11 U.S.C. § 726(a), we must report all your assets, properties, accounts, and holdings to the court when we file the petition, and everything may be subject to liquidation by a bankruptcy trustee appointed by the court. Once the liquidation process is complete, the court may discharge certain other debts. When debts are discharged, you are no longer legally bound to pay them, and creditors cannot come after you for payment.

Chapter 13

Another popular choice among individuals filing for bankruptcy is Chapter 13. According to § 1322(a), the goal of this chapter is not to liquidate assets but to devise a payment plan to help petitioners get back on their feet. Unlike Chapter 7, which typically takes only a few months, Chapter 13 bankruptcy may last several years. You may be required to abide by the terms of your payment plan for all that time. When the plan is complete, the court may discharge other debts that are still outstanding. In the end, the payment plan should help you pay down debts, improve credit, and get better control over your finances.

How to File for Bankruptcy in Telford

Your bankruptcy case begins with a petition. Your petition is the formal legal paperwork we need to submit to the federal bankruptcy court to start the bankruptcy process. This is far more than a document with your name and information. We must explain your current financial situation, which bankruptcy chapter you are filing under, how you are eligible to file, and why the court should grant your petition.

When the court accepts your petition, the judge will impose an automatic stay, according to 11 U.S.C. § 362(a). The automatic stay stops creditors and lenders from initiating legal action against you for unpaid debts. If any legal action is pending against you when we file the case, those proceedings must halt until your bankruptcy case is complete. By that time, your debts might be paid off or discharged.

Speak to Our Telford Bankruptcy Attorneys About Your Situation Today

For a free, private case evaluation to begin, call our bankruptcy lawyers at Young, Marr, Mallis & Associates at (215) 701-6519.