Abington Bankruptcy Lawyer
When you find yourself in a difficult financial situation, you may start ignoring some bills to pay others, paying for food and necessities while disregarding a mortgage or car payment. Eventually, this practice will catch up with you and you will find your home in foreclosure or your car under repossession. Bankruptcy can help you escape this downward spiral and put you on the right track towards financial stability.
At Young Marr & Associates, we have helped thousands of individuals save their homes and get their financial lives back on track. For more than 20 years, our Abington bankruptcy lawyers have worked compassionately and respectfully with the residents of Abington, guiding them through their financial hardships. For a free legal consultation about filing for Chapter 13 or Chapter 7 bankruptcy in Abington, Pennsylvania, contact Young Marr & Associates at (215) 701-6519 to get started.
Filing Under Chapter 7 and Chapter 13 in Abington
There are different types of bankruptcies, called “chapters” after which chapter of the Bankruptcy Code they are found in. Most individuals will file either Chapter 7 or Chapter 13. Which one is most beneficial to you depends on your financial situation and the nature of your debts.
Chapter 7 is a shorter process, usually lasting five to six months, especially for debtors with lower incomes and fewer assets. Chapter 7 is known as liquidation bankruptcy, meaning a court-appointed trustee can sell off your personal and real property to pay creditors. However, in most cases you can protect most, if not all, of your property. Our experienced Abington bankruptcy attorneys will evaluate all of your assets before you file and help you decide if Chapter 7 is right for you.
Chapter 13 is a longer process that requires monthly payments to your creditors. As part of the initial filing, you will propose a bankruptcy plan. The plan will list your creditors, the total amount paid, and the monthly payment you will be paying through a court-appointed trustee.
No matter which type you file for, a legal protection called an “automatic stay” goes into effect when the bankruptcy begins. This legal wall protects you from all collection activities, stopping any legal proceedings against your assets.
Protecting Your Home During Bankruptcy in Abington, PA
There can be several reasons why you fell behind on your mortgage payments, including loss of income, medical issues, or divorce. Once you are delinquent on your mortgage, your lender may no longer accept partial payments and will initiate foreclosure proceedings. If you are facing foreclosure or if your house is scheduled to be auctioned at a sheriff sale, Chapter 13 can help you keep your home.
When you file Chapter 13, the automatic stay will stop a foreclosure action and halt a sheriff sale. You will then be able to pay the amount you were behind through the bankruptcy plan while your mortgage company starts accepting your regular monthly mortgage payment again.
Keeping Your Car During Bankruptcy in Abington
Your car is necessary for work, errands, and getting your children to and from school. Losing your car to repossession can significantly impact your ability to earn a living and provide for your family. Once your vehicle is repossessed, your lender will sell it and sue you for the balance remaining on your car loan. One option for having the repossessed car returned is filing for bankruptcy. Your automatic stay goes into effect with the commencement of your case, and this legal wall of protection stops your lender from moving further with the repossession. This means that if your lender has not sold the vehicle, it must be returned to you once you file your case, and your lender should provide instructions on where to pick up your car. Your Abington bankruptcy attorney will file a motion to turn over your vehicle if your lender fails to comply. Should you lender sell your vehicle in violation of the automatic stay, your bankruptcy attorney may file for monetary sanctions.
What happens next depends on what chapter of bankruptcy you filed under. If you filed Chapter 7, you have two options available: redeeming or reaffirming.
Redeeming your vehicle means paying the market value of the car in one lump sum. The benefit is that you may pay substantially less than you owe on the car loan. However, most people filing Chapter 7 do not have the financial resources to make a payment of that size.
Reaffirming the debt means that you and your lender agree to new loan terms, potentially providing you with more manageable payment terms. Because you can discharge your personal obligations in Chapter 7, your lender has some motivation to enter into a new agreement so they can still get something back. You will have to prove to the court that the car is necessary and that the new payment is reasonable before this can be approved.
If you filed Chapter 13, you would be able to pay back payments through the bankruptcy plan. In certain circumstances, you can modify the loan agreement, paying back the fair market value of the vehicle instead of the full balance of your loan. The experienced attorneys at Young Marr & Associates will guide you through the process, fighting to help you keep your vehicle under the best possible terms.
Call Our Abington, Pennsylvania Bankruptcy Lawyer for a Free Case Consultation
If you or a loved one is considering filing for bankruptcy in Abington, contact Young Marr & Associates at (215) 701-6519 to speak with an Abington bankruptcy lawyer. Your initial consultation is free of charge and completely confidential. For decades, we have provided compassionate, affordable bankruptcy representation to clients throughout the Abington area. Young Marr & Associates can help you regain your financial independence while assisting you in keeping your house and car.