Chesterbrook, PA Bankruptcy Lawyer
Staying afloat financially has always been a complex balancing act, but it has become increasingly difficult in today’s economy. If you find yourself in deep debt with too many late or missed payments, you might want to think about filing for bankruptcy.
You should contemplate the possibility of filing for bankruptcy when your debts are high, your income cannot keep up with the rising debt, and you are missing many payments. Many people file for bankruptcy when they are at risk of losing valuable assets because of their debt. While there are numerous bankruptcy chapters to choose from, most individuals file under Chapters 7 or 13. The best bankruptcy option for your situation depends on what you want from your case. Chapter 7 bankruptcy can help you discharge debts more quickly, but Chapter 13 might allow you to hold on to assets like your home and vehicle.
Call (215) 701-6519 to schedule a free case evaluation with our bankruptcy lawyers at Young, Marr, Mallis & Associates.
When You Should File for Bankruptcy in Chesterbrook, PA
Various circumstances might call for bankruptcy. For many, bankruptcy becomes a more viable option when debts are very high, and there is insufficient income to keep up. However, minor debt is usually not enough to justify filing for bankruptcy. People who file for bankruptcy are often in so much debt that they might never fully pay everything off.
Bankruptcy is often discussed when people start missing payments on significant purchases. Perhaps the most significant asset people do not want to miss payments for is a home. Missing too many mortgage payments might lead your creditor to foreclose on your home and seize the property, leaving you with nothing.
If you have missed a few mortgage payments and do not anticipate being able to afford your next one, our bankruptcy lawyers can evaluate your situation and determine if filing for bankruptcy will help you.
There is not really a deadline for when you must file for bankruptcy. However, you should speak to an attorney and file your case before your house is foreclosed on or before assets are seized or repossessed. If you wait too long, your belongings and home could be seized and sold off before we can do anything to help you.
How to File for Bankruptcy in Chesterbrook, PA
There are multiple ways in which a person may file for bankruptcy. Bankruptcy chapters under the federal code apply to different parties and circumstances, and determining which one is right for you is an important step. For the most part, individuals filing for bankruptcy file under Chapter 7 or 13. If you have a business or organization filing for bankruptcy, you should talk to a lawyer about what chapter is best for you.
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy – a.k.a. liquidation bankruptcy – may be helpful for people looking to get rid of property or assets they owe money on. Under Chapter 7, assets and property, including your home, may be liquidated, and the money you make from selling off these assets is then used to pay for outstanding debts. Some remaining debts might be discharged, and you would no longer be responsible for paying them.
This bankruptcy option tends to work better for people who have few significant assets or do not mind parting with their assets. In many cases, once assets are liquidated, the bankruptcy process only takes a few short months to complete.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy does not necessarily involve liquidating assets but instead focuses on reorganizing your financial situation. You and your attorney must develop an effective payment plan or schedule that will help you catch up on late payments within a certain period of time. This period often lasts several years, and this process takes longer than filing under Chapter 7.
If the court and your creditors approve the payment plan, you must remain on it until it is completed. Again, how long this takes might vary from case to case, but you should expect to be on a strict payment plan for several years.
Ideally, if you faithfully adhere to the payment plan, you should catch up on missed mortgage payments while keeping up with current payments. In the end, you should be caught up, or close to it, and should hopefully avoid financial disaster.
Which Bankruptcy Option is Best For My Situation in Chesterbrook, PA
To determine which bankruptcy option works best for you, you should meet with a qualified attorney and discuss your financial situation. While Chapters 7 and 13 are common filings for individuals, business owners or organizations might file under a different chapter. You should also discuss what you ultimately want out of your case. For example, do you want to retain certain properties and assets, or are you willing to part with assets to pay down debts?
If you do not have significant assets (e.g., homes, vehicles, real estate), you might find Chapter 7 bankruptcy a better option for your case. This chapter helps you quickly liquidate assets to pay back debts while discharging other debts. If you do not have many assets to begin with, you do not have much risk of losing anything important. Alternatively, if you do not mind giving up certain assets or properties, you might be able to get out from under your debt very quickly.
For those with numerous assets, or even just one asset they do not want to lose (e.g., a home), Chapter 13 bankruptcy is likely the way to go. Filing under this Chapter often takes much longer, but you might be able to hang on to your home and other assets. Not only that, but if we can get other unsecured debts discharged, you should have an easier time keeping up with payments on important things like mortgages and car payments.
Call Our Chesterbrook, PA Bankruptcy Lawyers for Advice
Call our offices at (215) 701-6519 to schedule a free case review with our bankruptcy attorneys at Young, Marr, Mallis & Associates.