Willow Grove Bankruptcy Lawyer

Going through bankruptcy is often emotional and stressful for debtors, but our attorneys can help make this process easier by overseeing filers’ cases and helping them settle outstanding debts with creditors.

There are several major differences between bankruptcy chapters, such as how repayment works and how debtors qualify for specific chapters. Our attorneys can apply the means test to confirm if Chapter 7 or 13 better suits your situation by comparing your income to the state’s average for households of a similar size. Courts may dismiss bankruptcy petitions when filers do not complete the mandatory credit counseling course within the necessary timeframe before filing, delaying cases and complicating repayment. Our attorneys can ensure your petition is complete with the appropriate credit counseling course certificate and other necessary information so your case can proceed smoothly after we file the petition in Willow Grove.

Get a free and confidential case review from Young, Marr, Mallis & Associates by calling our Philadelphia bankruptcy lawyers at (215) 701-6519.

The Differences in Bankruptcy Chapters for Filers in Willow Grove

There are several key differences between the bankruptcy chapters you can file if you fall into debt in Upper Moreland Township. Our lawyers can explain the differences in repayment between chapters, qualifying for chapters, and the average length of Chapter 7 and 13 cases so you feel confident and well-informed when entering your case.

How Repayment Works

One of the biggest differences between these bankruptcy chapters is how debtors actually repay creditors. Debtors who file Chapter 7 agree to liquidate some of their assets to repay secured debts and then may receive a discharge of unsecured debts. Debtors filing Chapter 13 will agree to repayment plans consolidating debts under the same low interest rate. This prevents debt from growing too quickly during the repayment period, alleviating significant stress for debtors throughout Upper Moreland Township.

How Debtors Qualify

Whether you can file Chapter 13 or 7 bankruptcy depends on the results of your means test. This test compares your recent income to the state average for a household of your size. If your income is below the average, you would qualify for Chapter 7. If your income is above the state average, you have sufficient disposable income to qualify for Chapter 13. Since Chapter 13 does not involve asset liquidation, it is preferred by many filers. Even if your means test results indicate your income qualifies you for Chapter 7, our bankruptcy lawyers may be able to convince the court that you have enough income to pay your current expenses and complete the repayment plan. While asset liquidation might deter some from filing Chapter 7, our lawyers may use exemptions to safeguard the most valuable and important assets during your bankruptcy case, like your home and car.

How Long Cases Take

There is also a substantial difference between the average lengths of Chapter 7 and 13 bankruptcy cases. In general, Chapter 7 cases take between four and six months to complete. Because Chapter 7 is generally for those seeking debt discharges for unsecured debts, the process can be relatively fast after our lawyers identify the appropriate assets to liquidate for repayment of possible secured debts. Some Chapter 7 filers could get a debt discharge even sooner after filing if they have relatively little debt.

Chapter 13 cases, on the other hand, take several years. In fact, it could be three to five years before your case finally concludes. This is a positive thing for debtors, as, during this time, the automatic stay will remain in effect, allowing you to settle debts with the structure of the repayment plan and preventing creditors from harassing you. Chapter 13 also provides debt relief, allowing filers in Horsham to discharge possible credit card debt or other unsecured debt while paying off secured debt like missed mortgage payments.

Meeting Bankruptcy Prerequisites in Willow Grove

Before filing bankruptcy petitions in Willow Grove, debtors must organize their financial information and complete certain perquisites, such as completing credit counseling courses within a specific timeframe.

You must complete a credit counseling course within the 180 days immediately preceding your bankruptcy filing. Our lawyers can ensure that the course you take is from an approved provider, so the court recognizes the certificate you receive upon completion and admits your petition.

Credit counseling gives debtors advice and instruction about general money management. The course can give tips on rebuilding your credit score after your bankruptcy case and how to budget based on your income, dependents, and expenses so you do not fall back into debt after you repay creditors or get a debt discharge.

Our lawyers will include the credit counseling certificate along with the bankruptcy petition we submit to the court. If you do not complete the course, the judge for your case will likely dismiss the petition. You would then have to delay your case, take the mandatory course, and re-file the petition. During this time, an automatic stay would not yet take effect. This means any creditor collection efforts, like wage garnishment or asset repossession, could continue. Our lawyers can help avoid this by explaining all prerequisites to filing bankruptcy, like taking a credit counseling course and organizing all other information the court may need for your case, like a creditor matrix and recent income documentation.

In anticipation of a bankruptcy case, it is important to know what to expect from your specific chapter, particularly how you will repay creditors without further negatively affecting your financial health. Our attorneys can explain the ins and outs of bankruptcy, reorganize your debt, and help you bring a successful case that gives you the necessary foundation to regain financial security.

Call Our Willow Grove Attorneys for Help with Filing Bankruptcy

Discuss your case for free with Young, Marr, Mallis & Associates when you call our bankruptcy lawyers at (215) 701-6519.