Cheap Bankruptcy Attorney Near Me in Pennsylvania
When you are struggling to pay for weekly groceries, credit card bills, or your monthly mortgage payment, the last thing you are considering is the additional expense of a lawyer. However, in many instances, the cost of our experienced Philadelphia bankruptcy attorney is well spent. Bankruptcy can provide relief to individuals overwhelmed with financial stress by eliminating a vast majority of their debt while lowering their monthly bills.
If you have been struggling to make ends meet, bankruptcy may be a step in the right direction.
At Young, Marr, Mallis & Associates, we recognize the concerns you may have about retaining an attorney’s services. We are also well aware of how challenging and complicated the bankruptcy process can be – it is too costly not to have our experienced bankruptcy lawyer at your side. We have payment plans to fit any budget and situation, and your initial consultation is free. Call our affordable Philadelphia bankruptcy lawyer at (215) 701-6519 to schedule your confidential, free consultation.
How to Affordably File for Bankruptcy in Pennsylvania
When you file for bankruptcy, a legal injunction called an automatic stay goes into immediate effect. This legal wall prohibits any collection action against you. There are several significant benefits offered by an automatic stay that could ease your monthly expenses.
First of all, you will no longer be required to pay any monthly credit card bills. Any outstanding debt you owe to a credit card company will either be eliminated or addressed in your bankruptcy plan. Similarly, unsecured personal loans or payday loans should be ignored once you file for bankruptcy. If you had direct withdrawals from your bank account to pay these obligations, those deductions would cease. The automatic stay prohibits creditors from making harassing phone calls, sending bills, or pursuing legal actions to collect on your debt.
Utilities such as water and electricity are a necessity. Falling behind in payments could result in threats of shut-offs, termination of service, or increased monthly payments to pay the arrears. Once you file for bankruptcy, any outstanding utility bill you have will be eliminated or addressed in your bankruptcy plan. Going forward, you would only be required to pay for the services you use, hopefully providing some relief from attempting to pay extra trying to catch up.
While it is difficult to discharge student loans in bankruptcy, it can offer a reprieve for some time. As with other creditors, lenders are prohibited from collecting student loan debts. As long as you are in your bankruptcy proceeding, five to six months for Chapter 7 or three to five years for Chapter 13, you will not be required to pay your student loans. However, it is crucial to understand that interest will continue to accrue during this period. Even so, the break of a few months could provide you the time you require to get yourself into a better financial position. While the initial expense of filing for bankruptcy might intimidate you, there will be many economic benefits that follow.
The Benefits of Chapter 7 Bankruptcy in Pennsylvania
Known as “liquidation” or “no-asset” bankruptcy, Chapter 7 is generally for individuals with limited income and mostly unsecured debt. The immediate benefit of Chapter 7 is the elimination of the bulk of your debt without having to make any payments. In some cases, a court-appointed trustee will take possession of and sell a portion of a debtor’s property to pay their creditors. However, in most Chapter 7 cases filed in Bucks County and Philadelphia, debtors can keep all of their property through exemptions in the Bankruptcy Code.
Another potential benefit of Chapter 7 is allowing you to surrender a vehicle without penalty or deficiency claims. If you find yourself unable to pay the monthly payment on your car loan, you can surrender the car through bankruptcy. Filing for Chapter 7 allows you to turn the car over to your lender and incur no additional fees or penalties while discharging the remaining loan balance.
Chapter 7 can free you of a stranglehold of debt and monthly payments, allowing you the financial freedom to improve your situation. Our experienced Bucks County and Philadelphia bankruptcy attorneys will thoroughly explain the benefits Chapter 7 can offer you.
Financial Benefits of Filing for a Pennsylvania Chapter 13 Bankruptcy
If your income is too high to qualify for Chapter 7, filing for Chapter 13 could provide the economic relief you require. The heart of a Chapter 13 bankruptcy is the bankruptcy plan. Through your proposed plan, you will offer to pay a portion or all of your creditors. Our seasoned attorneys at Young, Marr, Mallis & Associates will draft a plan that addresses all of your debt while adhering to the provisions of the Bankruptcy Code. The factors that determine how much and who you are going to pay are complex. Nonetheless, there are several benefits to paying your debt through a Chapter 13 bankruptcy.
Bankruptcy is not a negotiation. What you are required to pay is based on very specific factors, including a calculation of your monthly income and expenses, the type of debt you are paying, and the amount of property you have that is non-exempt. While the calculation is complicated, your creditors must accept the payment as long as it adheres to the Bankruptcy Code. For example, you could have $85,000 in credit card debt, and the Chapter 13 calculation requires you to pay $250 a month for 60 months towards unsecured creditors, or a total of $15,000. Therefore, you would be discharging $70,000 of unsecured debt. A debt settlement company would be unable to get you that type of deal. Additionally, there would be no tax consequences associated with the discharged debt. If $70,000 were forgiven in a settlement agreement, you would owe income tax on that amount.
Contact Our Cheap Bankruptcy Attorneys in Pennsylvania for a Free Consultation
At Young, Marr, Mallis & Associates, we understand that filing for bankruptcy may seem expensive. However, in many instances, it is the most cost-effective way to eliminate or pay off your debt. The Bankruptcy Code provides several protections that free you from economic distress. We will work with you to provide professional and experienced representation at a reasonable price. Call our affordable Pennsylvania bankruptcy attorneys near you at (215) 701-6519 for a free consultation.