Five Important Questions You Should Ask About Filing for Bankruptcy

If you are dealing with growing financial debt, then it is natural to wonder about the potential of filing bankruptcy to help fix your financial situation. A successful bankruptcy can help alleviate your financial woes, but it should not be your first option. You should hold off filing for bankruptcy until you address the following five important questions, preferably while consulting with an experienced bankruptcy attorney. Our team of bankruptcy attorneys are located in multiple offices across both Pennsylvania and New Jersey, and are available to you to help you answer the following questions before deciding to declare bankruptcy:

1. Do I Lose All My Assets If I Declare Bankruptcy?

In the major two types of personal bankruptcy filings, Chapter 7 and Chapter 13, certain types of property are exempt from being seized or sold in completing the bankruptcy. In trying to determine whether a Chapter 7 or Chapter 13 filing is more appropriate for you, your personal situation and level of income should be considered. Once you determine what type of bankruptcy is more appropriate, then you will be able to determine which assets you can keep. Depending on the type of bankruptcy you file, you may be able to keep your home, vehicle, and other assets. Make sure that you speak with an experienced bankruptcy Bucks County bankruptcy attorney to determine if a Chapter 7 or a Chapter 13 bankruptcy filing is appropriate for you and your financial situation.

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2. Will a Bankruptcy Relieve Me of Medical Bills?

The constantly rising cost of medical bills unfortunately continues to be a major reason people file for bankruptcy. Even when people have health insurance, they can be hit with medical debt that is simply impossible to overcome. A Chapter 7 bankruptcy can help you reduce or even eliminate your medical debt, while under Chapter 13, your debt can be structured into payments that you can make over time. The need to overcome medical debt from an emergency visit to the hospital or a long-term illness drives many people towards filing for bankruptcy as a bankruptcy filing can be the ticket to lower or completely eliminate medical debt.

3. Do I Still Have Time to File for Bankruptcy?

Filing for bankruptcy should never be your first option to try to resolve your debt. It is important to be aware of the status of your debts in order to be able to file for bankruptcy before it is too late. Even if you have been served a notice of foreclosure, repossession, or even a lawsuit, you still have time to file for an emergency bankruptcy which can pause these actions against you. Speak to an experienced bankruptcy attorney immediately if you are facing these issues to see what your best next step should be.

4. Will I Be Required to Complete Credit Counseling?

If you file for bankruptcy of any kind in either the state of Pennsylvania and New Jersey, you will be required to finish a credit counseling course and submit proof with a state-approved agency. Each person seeking to file for bankruptcy will have to file a certificate with the court proving that credit counseling what completed. The credit counseling that is required takes approximately 1.5 hours to complete, and the counseling is meant to help you understand how you got into your financial situation so you can avoid having to declare bankruptcy again.

5. What are the Next Steps After Bankruptcy?

Most people are curious about how difficult it is to get a mortgage in the future or be able to refinance their current mortgage after they declare bankruptcy. Your bankruptcy will be reported on your credit report for up to ten years. The effect on your credit rating will depend on what type of bankruptcy you file and what happened to your debts after filing for bankruptcy. Most people are able to get a new mortgage or refinance an existing one-two years after they file for bankruptcy. To find out what your specific financial outlook would be after filing for bankruptcy, make sure to speak to an experienced bankruptcy attorney today.

Call Our Bankruptcy Lawyers Today for A Free Consultation

If you are currently facing financial hardship and are wondering if filing bankruptcy might be for you, then it is important to seek the advice of an experienced Philadelphia bankruptcy attorney to help assess your situation. At Young, Marr & Associates Law Firm, we bring over 30 years of experience in helping people determine what their best approach is based on their specific financial situation. We are proud to offer a FREE consultation to help anyone struggling with excessive debt to determine if bankruptcy is the right solution. For help with your case, contact us today online here or call us at (215) 701-6519 in PA or (609) 755-3115 in NJ to schedule your free consultation.

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