Trevose, PA Bankruptcy Lawyer

It is hard to be prepared when circumstances are such that filing for bankruptcy might be the best option to get out of financial trouble. Filing for bankruptcy is a perfectly valid way to recover financial security that you should never feel embarrassed about.

When filing for bankruptcy, our attorneys can help you choose the type best protects your interests. Depending on the property you stand to lose, Chapter 7 or Chapter 13 each offer solutions to fit your circumstances. If your bankruptcy claim is approved, you will be protected in several ways that our team can help explain.

If you are considering filing for bankruptcy, our Trevose bankruptcy lawyers can help you determine what options are available to put your finances back in order. Contact Young, Marr, Mallis & Deane at (215) 701-6519 for a free review of your case.

Filing for Bankruptcy in Trevose, PA

Many people have difficulty deciding whether filing for bankruptcy is the right choice for their financial future. If you are feeling crushed by your debts and as you have nowhere to turn, filing for bankruptcy could provide the relief you need to help put your affairs in order. What you might not know is that you will have a few options when filing for bankruptcy in Trevose.

Chapter 7 and Chapter 13 are available for those who qualify, but you can only apply for one. Depending on the facts of your case, one option might serve your needs better than the other. Our Trevose bankruptcy attorneys can help you determine which option will best secure you and your family’s financial future.

Chapter 7 Bankruptcy

The most common type of bankruptcy that people file is Chapter 7 bankruptcy. However, filing for Chapter 7 bankruptcy will greatly impact the property you own. Chapter 7 bankruptcy is also called “liquidation” because your assets are repossessed and sold off, “liquidated,” to help pay down your debts. The upside is that your most serious debts will usually be dealt with quickly, giving you space to breathe and relieving you from constant assaults by creditors.

You must pass a “means test” in order to qualify for Chapter 7 bankruptcy. This is a test the court employs, which assesses your median income and compares it to the state median income in Pennsylvania. If the state median income is higher than yours, your Chapter 7 bankruptcy claim will likely be approved. If your median income is higher, the court will evaluate your disposable income at the end of each month to determine if you qualify for Chapter 7 bankruptcy.

You should be aware, though, that some of your most cherished property will likely be repossessed to satisfy your debts. This can include homes, cars, and other lucrative assets that can quickly pay down your debts. Further, an approved Chapter 7 bankruptcy will remain on your credit report for ten years.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a much more preferable option to Chapter 7 bankruptcy if you want to keep your property. Like Chapter 7, your Chapter 13 bankruptcy claim will need to be approved by the court. Instead of a means test, however, you must instead create a detailed repayment plan that the court will then approve or deny.

Your repayment plan will need to show how you will pay your debts and the schedule by which you will make payments. You will want to think through your situation thoroughly and in the long term, as most repayment plans last anywhere from three to five years. The court will evaluate your financial circumstances to determine if you can support yourself while making your scheduled payments. If the court has reason to believe you will not be able to honor the plan, they will deny your filing.

Once your Chapter 13 bankruptcy request is approved, an automatic stay will be instituted immediately. This often provides incredible relief for those possibly facing litigation over their debts. However, an approved Chapter 13 bankruptcy filing remains on an individual’s credit report for seven years, which is still three years less than a Chapter 7 bankruptcy. Our bankruptcy lawyers can help you determine if Chapter 13 fits your circumstances and develop a repayment plan that returns you to financial security.

Ways that Our Trevose, PA Bankruptcy Lawyers Can Assist Your Claim

Filing for bankruptcy can be one of the most intimidating choices a person faces in their life. Fortunately, our team can help you manage the stresses of filing for bankruptcy and how your finances will be impacted.

Filing Your Bankruptcy Claim

As discussed previously, there are two bankruptcy options that our attorneys can help you choose from, Chapter 7 and Chapter 13 bankruptcy. Each has its own pros and cons that have serious consequences. Our firm can assess your case to determine the option that is right for you.

Discharging Debts

We can also explain what debts you can discharge and importantly, which you cannot. Generally, unsecured debts, like medical expenses, credit card debt, and certain private loans, can be discharged in your case. Secured debts, such as child support, alimony, and typically student loans, cannot be discharged through bankruptcy.

Automatic Stays

Depending on the type of bankruptcy you filed, an automatic stay will go into effect. Automatic reliefs prevent creditors from calling, emailing, or initiating any new collection attempts against you. This can give you the space you need at a time most critical. If there are lawsuits filed against you for your debts, they will need to be withdrawn, and your frozen bank accounts will again be made available.

Exemptions to Protect Your Property

Lastly, we can help you explore what exemptions might apply to your case. Exemptions protect certain types of property from being repossessed and sold off. While both Pennsylvania and the federal government offer sets of exemptions, you can only choose one to apply to your case. Our bankruptcy attorneys can evaluate your financial circumstances to determine which exemptions can protect your property.

Our Trevose, PA Bankruptcy Lawyers Can Help

If you feel overwhelmed by your financial situation and are considering filing for bankruptcy, our Trevose bankruptcy lawyers can help you regain financial stability. For a free case evaluation, call Young, Marr, Mallis & Deane today at (215) 701-6519.