Lancaster, PA Bankruptcy Lawyer
For many people in Lancaster, every month is a financial struggle. When you fight to pay one bill, another payment is due elsewhere. The reasons these difficulties exist are numerous. People who suffered an unforeseen medical condition, a job loss, reduced hours at work, or any other event that takes an economic toll, can quickly find themselves receiving shut-off notices and threats of foreclosure in the mail. Bankruptcy is an option for people overwhelmed by debt.
Bankruptcy is often thought of as a taboo word. However, many people are unaware of the many benefits of filing for bankruptcy. At Young, Marr, Mallis & Associates, our staff and attorneys are sympathetic to the fears and understand your concerns. Before giving in to hopelessness, speaking with a knowledgeable lawyer who has your best interests in mind could be a much-needed life-preserver.
Filing for bankruptcy is not always the answer but, in many cases, it is the best option. If you feel crushed by a mountain of debt or are threatened with pending lawsuits, do not delay in calling our experienced Lancaster, PA bankruptcy lawyers. Contact our law offices at (215) 701-6519 to speak confidential and free with one of our attorneys.
Chapter 7 Bankruptcy in Lancaster, Pennsylvania
The most common type, or chapter, is Chapter 7 bankruptcy. Often called a straight or liquidation bankruptcy, Chapter 7 is designed for filers with limited income and assets. The primary benefit of Chapter 7 is that an individual or couple could quickly eliminate a substantial portion of their unsecured debt, including credit cards, medical bills, personal loans, utility bills, repossession deficiencies, certain judgments, and other types of financial obligations.
A debtor must meet specific qualifications to file Chapter 7. Our Lancaster, PA bankruptcy attorneys will look at your monthly household income along with your personal and real property. While people worry about losing their property in bankruptcy, Pennsylvania allows filers to choose between federal and state exemptions to protect their assets when they file for bankruptcy. In most cases, a debtor will be able to keep their property, including their car, home, furniture, and other assets. Before you file Chapter 7, it is critical to speak with an experienced bankruptcy attorney to ensure you qualify and that you will not lose your property.
Many debts are dischargeable in Chapter 7. Unfortunately, there are some debts, such as criminal fines, child support, alimony, most student loans, some taxes, and other specific debts that are not discharged when you file. In some rare cases, student loans are dischargeable. If you are struggling with student loan payments, contact Young, Marr, Mallis & Associates to determine if your loan is eligible for discharge.
Chapter 13 Bankruptcy in Lancaster, Pennsylvania
Chapter 13 bankruptcy another common kind of bankruptcy in Lancaster, PA. Unlike Chapter 7, individuals and couples will reorganize their debts in Chapter 13. For example, a filer could pay their mortgage company money they are behind through a bankruptcy plan. This payment will allow the homeowner to keep their home if they meet the requirements of the Bankruptcy Code. Chapter 13 bankruptcies are also helpful if you are behind on your real estate taxes, a vehicle repossession, or if your income is too high to qualify for Chapter 7.
The key component in a Chapter 13 bankruptcy is the bankruptcy plan. Our Lancaster bankruptcy attorneys typically propose a bankruptcy plan to address your specific debts while complying with various rules and regulations. A court-appointed trustee will review your plan to ensure it adheres to the Bankruptcy Code. The original plan is likely to be amended as your creditors file claims indicating what you own them. Our office will thoroughly examine each claim to determine if they are valid or if an objection should be filed.
Chapter 13 is much more complex than Chapter 7, but it offers additional benefits. Depending on the facts of your case, you could lower your monthly car payment or strip a second mortgage from your home. When speaking with one of our Lancaster Chapter 13 lawyers, be sure to disclose all your debt, assets, and income. If the information provided is not complete, you will not be able to take full advantage of your bankruptcy and be subject to significant fines and penalties.
The Automatic Stay and Lancaster Bankruptcies
When you file for bankruptcy in Lancaster, an immediate legal barrier, or automatic stay, is created between you and your creditors. This legal barrier prohibits your creditors from taking any actions against you, including repossessing your car, foreclosing on your home, or pursuing a collection lawsuit against you in civil court. If your utility services were terminated because you were behind in payments, they should be restored. In some situations, if you filed your case fast enough, a repossessed vehicle might have to be returned.
For many people, this barrier allows them the breathing room necessary to regain their financial footing. It also can ease the anxiety associated with debt by prohibiting phone calls and threatening collection letters. After you file for bankruptcy, you should keep track of your creditors’ activity. Violations of the automatic stay could result in court-ordered monetary sanctions. Be sure to tell our Lancaster bankruptcy attorneys if creditors are still harassing you after you file.
If You Are Overwhelmed With Debt, Call Our Lancaster, PA Bankruptcy Lawyers
Money problems are one of the leading causes of stress and anxiety. By taking the time to speak with our experienced Lancaster, PA bankruptcy lawyers, you could take the first step towards a financial fresh start. At Young, Marr, Mallis & Associates, our attorneys are committed to dispelling the many myths and misconceptions regarding bankruptcy. For a free and confidential appointment, call our law offices at (215) 701-6519.