Hellertown, PA Bankruptcy Lawyer

Though bankruptcy can be intimidating, our lawyers can explain what the process entails so that you feel confident tackling your debt in Hellertown.

We can start by fully reviewing your finances, including your income, assets, expenses, and debts. We will create a list of your creditors for the petition so we know exactly what you owe. How you repay creditors will depend on the bankruptcy chapter filed. Chapter 7 repays creditors through asset liquidation, while Chapter 13 does so through repayment plans. In addition to protecting your interests during mediation and throughout your case, our lawyers will determine if you have any unsecured debts that are eligible for a discharge after repaying mandatory secured debts.

Call (215) 701-6519 and schedule a free case assessment from the Allentown, PA bankruptcy lawyers of Young, Marr, Mallis & Associates.

Preparing Debtors for Bankruptcy Claims in Hellertown, PA

To prepare your bankruptcy petition and case for court, our lawyers will start by reviewing your financial health. We must identify all creditors to whom you owe any amounts and assets that could be at risk of liquidation, depending on the chapter filed. We can help you navigate possible mediation and all other aspects of your bankruptcy case so that you achieve your desired result of being debt-free.

Reviewing Your Finances, Debts, and Assets

In order to prepare your case, we must have a solid understanding of your financial health, including the full scope of your debt. Depending on your income, the court could liquidate some of your assets to repay creditors named in your case. Debtors whose assets are subject to liquidation may be able to protect some with liquation exemptions, provided they claim the appropriate exemptions when filing petitions. Most debtors are primarily concerned with protecting their homes, particularly if they have experienced mortgage default and were facing foreclosure prior to filing bankruptcy. Though Pennsylvania does not offer a homestead exemption for bankruptcy filers, it does allow them to use federal exemptions instead of state ones, and our lawyers can ensure we do so to safeguard specific assets or personal items, like family heirlooms or vehicles.

Debtors may hesitate to file for bankruptcy for many reasons, such as concern for how it would affect their financial health in the short term. Though bankruptcy cases cause credit scores to drop, this dip is only temporary. After the case ends, you can use the skills learned in the mandatory credit counseling course you took within the 180 days before filing to start rebuilding your credit without falling back into debt.

Picking the Appropriate Chapter

Based on the size of your debt, its classification, and your income, our lawyers will determine the bankruptcy chapter that best suits you. There are two main options for consumers in Hellertown, the most common being Chapter 7. This is the bankruptcy chapter that requires asset liquidation, so our lawyers will identify liquidation exemptions before filing the petition. Those whose incomes are high enough to pass the means test can qualify for Chapter 13 bankruptcy. Rather than liquidating debtors’ assets, it subjects them to a repayment plan. Our bankruptcy lawyers will write this plan, and the court will approve it. The length of repayment plans varies from case to case. Debtors with more secured debt might take closer the five years to finalize their cases, while debtors with less might take as little as three years to repay creditors in their Chapter 13 cases. Chapter 7 claims take the shortest time to complete, typically only a matter of months.

Filing the Petition and Your Automatic Stay

In Pennsylvania, judges oversee bankruptcy cases. Instead of creditors being able to steamroll debtors when seeking repayment, they must abide by the structure and processes of the court, and this typically benefits debtors. We can prepare your bankruptcy petition timely so that creditors do not start repossession, wage garnishment, or other debt collection efforts that can be distressing. Judges grant automatic stays as soon as bankruptcy petitions are filed in court. Once this happens, creditors must stop contacting you outside of the case. This means no more harassing phone calls, and any efforts to foreclose on your home, repossess your car, or garnish your wages must stop immediately. To make sure the court accepts your petition, our lawyers will include all mandatory information about your creditors and how much you owe them.

Mediation with Creditors

Mediation is typically encouraged during bankruptcy cases. Creditors who might have refused to negotiate before you filed might be forced to the table by the judge assigned to your case and encouraged to discuss a solution that benefits all parties. Creditors also often want to end bankruptcy cases quickly, as these cases can require significant time and resources on their part. During mediation, we may discuss ways to lower the total amount you owe in exchange for faster repayment or other terms that would effectively resolve the matter without lengthy and multiple court appearances. Creditors could contest certain aspects of repayment plans, which might require further negotiations.

Concluding Your Case

After repaying your secured debts, you may receive a debt discharge of unsecured debts. This refers to things like credit card and medical debt, which the judge might erase provided you qualify, as most filers do. If a specific debt is discharged, the creditor cannot seek repayment in any way, as you have been alleviated from that liability. Debtors must wait a certain amount of time between bankruptcy filings so that they do not accrue unsecured debts just to get them erased, which is important to keep in mind after your bankruptcy case concludes in Hellertown.

For Help with Your Bankruptcy Case in Hellertown, PA, Call Our Lawyers

Call (215) 701-6519 for a free and confidential case review from the bankruptcy lawyers of Young, Marr, Mallis & Associates.