Morrisville, PA Bankruptcy Lawyer
Filing for bankruptcy is one of the most difficult choices you and your family might face. However, bankruptcy is available in Morrisville to individuals who need help getting their finances back on track.
There is no need to be embarrassed when you recognize that you need help overcoming your financial difficulties. Fortunately, our team can help you determine which bankruptcy option will work best for your situation. In many cases, the type of bankruptcy you file for depends on your assets and what you are trying to keep. Once approved, however, you should be free from your creditors’ attempts to collect their debts while addressing your case.
Our bankruptcy attorneys at Young, Marr, Mallis & Deane are here to provide you with a free review of your case by calling us today at (215) 701-6519.
Filing for Bankruptcy in Morrisville, PA
For those in financial distress in Morrisville, bankruptcy is a means of debt relief. If you are considering filing for bankruptcy, you might be wondering what to expect from the process. Individuals seeking relief have a few options, including Chapter 7 bankruptcy or “liquidation” and Chapter 13 bankruptcy, also known as “debt reorganization.” In order to file for bankruptcy, though, you must meet certain requirements unique to your specific situation.
Filing for Chapter 7 Bankruptcy
The term “liquidation” is used to describe Chapter 7 bankruptcy in Morrisville since some of the individual’s assets are typically sold off to repay their debts. Some pieces of property will inevitably have to be sold. Still, federal or state exemptions are present that can offer protection to specific assets you may not want to relinquish, like protections for your home or vehicles.
Unsecured debts, such as medical bills and credit card payments, can usually be discharged by filing for Chapter 7 bankruptcy. However, debts considered secured, such as child support and alimony payments, usually cannot be discharged through this process. Fortunately, our bankruptcy lawyers can review your case to help you determine which debts you can be relieved of. Though student loans have generally been considered non-dischargeable debt, there have been instances where individuals have been able to discharge their student loan obligations through Chapter 7 bankruptcy.
After filing for bankruptcy, you will be required to disclose crucial details regarding your assets, debts, income, and other essential information. The court will then evaluate your eligibility for Chapter 7 relief by performing a “means test” to ensure your monthly income is below the state average. If you meet the requirements, a trustee will be appointed to manage the liquidation of your assets, which will be utilized to repay the debts listed in your petition. Once all the sales are concluded, you will be granted a complete discharge from your qualifying debts.
Most Chapter 7 bankruptcy petitions are typically resolved within a few months, but they can take longer, depending on the circumstances. If you are filing for personal bankruptcy, you can file your Chapter 7 petition here in Morrisville. However, when filing for bankruptcy on your company’s behalf, initiating the claim in the state where your primary place of business is established is necessary.
Filing for Chapter 13 Bankruptcy
If your priority is to retain your assets, Chapter 13 bankruptcy is a more suitable alternative to Chapter 7. However, your Chapter 13 petition, similar to Chapter 7 bankruptcy, will require court approval. To get court approval, you will not need to pass a means test but instead must draft a comprehensive repayment plan for the court’s assessment.
When creating a Chapter 13 repayment plan for your debts, it is crucial to demonstrate how you will clear your dues and the timeline for making payments. It is best to carefully analyze your financial situation and honestly assess your ability to pay since most repayment plans range from three to five years. The court will examine your financial stability to ascertain if you can manage to sustain yourself and your family financially while making the necessary payments. If the court finds any reason to suspect your inability to abide by the plan, your filing will be denied.
If your petition for Chapter 13 bankruptcy is granted, an automatic stay will usually take effect, bringing immense relief to individuals facing potential legal action and harassment for their debts. Nonetheless, a Chapter 13 bankruptcy claim will linger on your credit report for seven years. This is still preferable to the timeframe of a Chapter 7 bankruptcy filing, which stays on a person’s credit report for ten years.
How Filing for Bankruptcy in Morrisville, PA Can Help You Regain Financial Control
Filing for bankruptcy in Morrisville can help you regain control of your financial future in numerous ways. Most importantly, you will be able to discharge certain debts to help get back on your feet, but other debts might remain. You should also get relief from an automatic stay of collection attempts. Of course, you might be worried that important assets will not be protected, but the federal and state government each offer a set of exemptions for you to choose from that could help.
Discharging Certain Debts
In a Morrisville bankruptcy claim, most unsecured debts can be discharged, including credit card debt, medical bills, personal loans, and utility bills. However, certain debts cannot be discharged, such as child support, alimony, certain tax debts, and debts incurred through fraud or malicious conduct. Additionally, secured debts, such as a mortgage or car loan, may not be fully discharged, but bankruptcy may provide some relief or restructuring options.
Student loan debt is generally not dischargeable in a Morrisville bankruptcy claim. However, there are exceptions to this rule, and some individuals might be able to discharge student loan debt in a Chapter 13 bankruptcy filing if they can show that paying the loans will cause undue hardship.
Application of Automatic Stays
Filing for bankruptcy offers significant relief to many petitioners by immediately implementing an automatic stay as soon as the court approves their bankruptcy claim. The automatic stay forbids lenders and creditors from pursuing payment through various methods. Automatic stays can prevent the repossession of property and request to sell it off. Automatic stays should also put a stop to the distressing calls and collection attempts that you have endured. Also, any pending legal proceedings against you should be halted, and no new ones can be filed if an automatic stay is in effect.
Exemptions to Protect Your Assets
Pennsylvania exemptions allow debtors to retain certain assets in a bankruptcy claim. These exemptions can include cars, homes, clothes, beds, and other household goods and furniture. However, exemptions typically only cover a certain dollar amount per asset. Debtors can also claim a wildcard exemption of $300 worth of personal property of their choice not included in the above-referenced categories. It is important to note that debtors can also choose federal exemptions instead of state ones, but they might not cover as much property as the state exemptions.
Our Morrisville, PA Bankruptcy Attorneys Can Help
For a free case consultation with our bankruptcy attorneys, contact Young, Marr, Mallis & Deane today at (215) 701-6519.