Media, PA Bankruptcy Lawyer

Bankruptcy can be a helpful tool in rebuilding your financial health. If you are dealing with tremendous debt and need to reorganize your finances, Chapter 7 or 13 bankruptcy might help you.

When debtors file for bankruptcy, certain unsecured debts might be immediately discharged, meaning debtors are relieved from the responsibility of repaying them. If debtors file for Chapter 7 in Media, they can protect specific assets from liquidation using federal or state liquidation exemptions. The timeline of bankruptcy varies for filers. Chapter 7 typically takes a few months, and Chapter 13 typically takes a few years. While declaring bankruptcy can have a negative connotation in some people’s minds, it is often a positive thing that allows debtors to address their debt and move forward with a clean slate.

Call our Media, PA bankruptcy lawyers at (215) 701-6519 to set up a confidential and free case review with Young, Marr, Mallis & Associates today.

Debts Dischargeable in Bankruptcy in Media, PA

Some debts are immediately discharged when debtors enter into bankruptcy in Media. These primarily include unsecured debts, like credit card debts.

Entering into bankruptcy allows debtors to erase certain debts and focus on paying back more overwhelming ones. If a creditor argues against the discharge of unsecured debts, our bankruptcy lawyers can argue for debt discharge so that you no longer have to repay eligible debts. For example, credit card bills, medical bills, and unsecured personal loans are typically dischargeable in bankruptcy. In some cases, student loans may be dischargeable as well. Chapter 13 bankruptcy allows for additional debts to be discharged, such as debts relating to damage to another person’s property and debts from divorce or separation property settlements.

When a debt is discharged, a debtor is relieved of any prior responsibility to repay those debts. This means that some debt, in part, can be erased when debtors file for Chapter 13 or Chapter 7 in Media. This immediate relief allows debtors to focus on secured debts, like mortgage and car payments, that might be easier to address after a discharge.

Secured debts are typically non-dischargeable during bankruptcy in Media. These include debts for child support, alimony, taxes, and fines, among others. This means they cannot be erased and must be repaid during bankruptcy in Media.

Liquidation Exemptions for Media, PA Bankruptcy Filers

Entering into Chapter 7 in Media means that certain debts will be repaid by liquidating a debtor’s assets. Fortunately, there are liquidation exemptions filers can use to ensure that certain property is not lost during Chapter 7 bankruptcy.

Pennsylvania has few liquidation exemptions for Chapter 7 bankruptcy that can help debtors. The most notable exemption available in Pennsylvania is the wildcard exemption, which filers can use to put towards $300 worth of property. This can help debtors with small outsanding car or mortgage payments.

Because Pennsylvania offers few bankruptcy liquidation exemptions for Chapter 7, it allows debtors to use federal exemptions instead. While no state-specific homestead exemption is available to debtors in Media, filers can use the federal exemption to safeguard their primary residence from liquidation or foreclosure. The same can be said for debtors with other property at risk of liquidation, like cars or valuable household goods.

You cannot use both state and federal bankruptcy liquidation exemptions in Media. You must choose which set of exemptions you wish to use when you initially enter into bankruptcy. Pennsylvania provides no bankruptcy liquidation exemptions for filers of Chapter 13, as Chapter 13 does not entail the liquidation of a debtor’s assets.

Timeline of Bankruptcy in Media, PA

The timeline you follow might differ based on the type of bankruptcy you enter into in Media. Generally, all bankruptcy proceedings start with an initial filing and an automatic stay.

After you have filed for bankruptcy with the court in Media, you will likely be granted an automatic stay. This prevents creditors from contacting you about outstanding debts and pauses your responsibility to repay them. Then, eligible unsecured debts will be discharged.

Court proceedings typically follow a bankruptcy filing, though they may differ for filers of Chapter 13 and Chapter 7. When you enter into Chapter 7 in Media, you can identify which exemptions apply to your situation and use them accordingly to protect some assets. Then, your unprotected assets will be liquidated to satisfy your debts to lenders. All in all, Chapter 7 bankruptcy takes on average several months to complete in Media.

For filers of Chapter 13, initial filings will be followed by repayment plan configuration. Our lawyers will meet with creditors, often during mediated sessions, to determine a repayment schedule that satisfies all parties. Chapter 13 bankruptcy consolidates debts and puts them all under the same low-interest rate, allowing debtors to pay back creditors according to one set schedule, typically over a period of several years in Media. After you have successfully completed bankruptcy, you will no longer be in debt.

Benefits of Entering into Bankruptcy in Media, PA

Declaring bankruptcy poses many benefits to debtors in Media, the primary one being the ability to address your debt and move forward with your life.

Being in debt can considerably impact a person’s overall happiness and financial security. When debtors declare bankruptcy, they can wholly address all outstanding debts to creditors through liquidation or a repayment plan.

A major benefit of declaring bankruptcy in Media is having eligible debts discharged. Another one is the automatic stay that will go into effect as soon as you file, giving you time to assess your situation and make a plan moving forward. While entering bankruptcy might initially negatively affect your credit, it can also be positively impact your credit in the long run, as addressing your debt gives you an opportunity to rebuild your credit in the future.

Learn More About How Declaring Bankruptcy in Media, PA Can Help You

To schedule a confidential and free case review with our bankruptcy lawyers, call Young, Marr, Mallis & Associates today at (215) 701-6519.