Drexel Hill, PA Bankruptcy Lawyer
When people in Drexel Hill are unable to get a handle on their debts, they can use bankruptcy to tackle their financial situation and greatly improve it.
The chapter of bankruptcy you are eligible to file in Drexel Hill will largely depend on your income. Filing for bankruptcy is done by petitioning the court and providing information about a person’s financial situation, including outstanding debts. While debtors are often concerned about losing their belongings in bankruptcy, assets can be protected using liquidation exemptions. Some debts may be dischargeable in bankruptcy, making repayment easier for debts. While your credit might be affected by bankruptcy for a bit, you can exit bankruptcy debt-free within a matter of months or years, depending on the bankruptcy chapter you file in Drexel Hill.
To schedule a free and confidential discussion of your case with our Drexel Hill, PA bankruptcy lawyers, call Young, Marr, Mallis & Associates at (215) 701-6519 today.
Common Questions Debtors Have About Bankruptcy in Drexel Hill, PA
The idea of bankruptcy can be a stressful prospect for debtors in Drexel Hill, largely because of the negative connotations surrounding the process. In order for debtors to feel comfortable proceeding with bankruptcy, it is important that their most pressing questions be answered. Common questions revolve around how to file for bankruptcy, the likelihood of losing assets, the length of bankruptcy, and eligibility for debt discharge, among others.
How Do I Qualify for Bankruptcy?
Anyone who has debt that they cannot handle on their own can choose to petition for bankruptcy in Drexel Hill. Debtors cannot pick the type of bankruptcy they file in most cases, as a debtor’s income determines that. Typically, debtors with many expenses and lower incomes are limited to Chapter 7. Debtors with higher incomes can often file Chapter 13. Chapter 7 requires liquidation of assets, while Chapter 13 requires the repayment of debts over the course of several years.
How Do I File for Bankruptcy?
The bankruptcy process largely happens in court. Debtors in Drexel Hill can file a bankruptcy petition, which will include information about their debts and creditors. This is when you will identify the bankruptcy chapter you are filing as well as additional details about your finances. The judge assigned to your case might require that you and creditors enter into mediation to discuss certain aspects of repayment and possibly negotiate a deal. When you file, an automatic stay will go into effect, preventing creditors from reaching out to you about your debts outside of a court setting.
Can I Lose My Personal Belongings?
Perhaps the top concern of most debtors in Drexel Hill when considering bankruptcy is whether or not they will lose their belongings. This largely depends on the chapter of bankruptcy you file and the liquidation exemptions you choose. Only those who file Chapter 7 have to be concerned about asset liquidation. If retaining certain property, like your home or car, is important to you, our bankruptcy lawyers can cite the proper federal liquidation exemptions in your initial bankruptcy petition. Federal exemptions are typically more expansive than state exemptions, and Pennsylvania allows debtors to choose from either set. If you file Chapter 13, none of your assets will be liquidated to repay debts in Drexel Hill.
Do I Have to Repay All My Debts?
Bankruptcy makes the process of repaying debts easier, as it facilitates repayments and provides a reprieve on debt collection. Still, debtors might be unsure how they will be able to repay debts during bankruptcy and stay afloat financially. Fortunately, certain debts are dischargeable in bankruptcy. This means they are effectively erased, and debtors no longer need to repay them. For example, credit card debt is dischargeable because it is unsecured, something that many debtors would be glad to hear. In Chapter 7, eligible debts are discharged immediately, while in Chapter 13, they are discharged once a repayment plan has been completed.
How Long Will My Bankruptcy Last?
The length of the bankruptcy process will depend on your specific case. If you are eligible for Chapter 7, bankruptcy will be completed within four to six months after you identify assets for liquidation. This is the fastest form of bankruptcy available to debtors in Drexel Hill. Chapter 13 takes longer, primarily because it does not require repayment through liquidation. Chapter 13 can take between three and five years, depending on the size of your debt as well as the requirements of your repayment plan.
Will Bankruptcy Affect My Credit?
Entering into bankruptcy is a big financial decision that can impact a debtor’s credit. A Chapter 13 bankruptcy can stay on a debtor’s credit report for about seven years, while Chapter 7 can stay on a credit report for up to ten years. While that might be jarring initially, it is important to understand that the longer you remain in debt and fail to pay creditors, the worse your credit will become. When you choose bankruptcy, you can work towards improving your credit over time, which might have been impossible if you declined to file and could not repay lenders, causing you to get into even greater debt.
Can I File for Bankruptcy Multiple Times?
There is no limit to the number of times a debtor can file for bankruptcy, although there are required waiting periods between bankruptcy filings in Drexel Hill. Furthermore, if you filed for bankruptcy in the recent past and do so again, you might not get to benefit from an automatic stay or debt discharge. In general, it is best to address all debt in your initial bankruptcy proceedings so that you are financially secure enough to avoid another bankruptcy in the near future.
Learn if Bankruptcy is Right for You
Call (215) 701-6519 to have the bankruptcy lawyers at Young, Marr, Mallis & Associates at evaluate your case today.