York County, PA Bankruptcy Lawyer

Financial disaster has many causes. While every situation is unique, a lost job, medical expenses, or an accident are common reasons why hard-working people get into financial trouble. Most people work hard and try to do what is right, but sometimes life makes that impossible. In situations like these, bankruptcy can be a powerful and effective way to reduce or eliminate debt.

With our help, consumers may file either Chapter 7 or Chapter 13 bankruptcy to address financial hardship. Chapter 7 is primarily for debtors with limited income and dischargeable debts. In contrast, Chapter 13 is geared toward debtors with higher incomes and who want to maintain ownership of their car, home, and other assets. We can advise you on what chapter of bankruptcy is appropriate and work with you through every stage of your bankruptcy case. Bankruptcy can provide real financial relief and a pathway to financial health for many people. However, bankruptcy and its details should be carefully considered before taking any action.

Discuss your case for free with Young, Marr, Mallis & Associates by calling our bankruptcy lawyers at (215) 701-6519.

What Are the Benefits of Hiring a Bankruptcy Lawyer in York, PA?

While there are many benefits to hiring a bankruptcy lawyer, instant relief from debt-collection calls and loan-modification negotiations with creditors are two of the most immediate perks debtors experience. While these reasons should not be the primary ones for your choice to declare bankruptcy, they do often reduce the anxiety felt by many people.

Relief from Debt Collection Calls

Representation by an experienced bankruptcy attorney can provide relief from most collection calls. The automatic stay prohibits new debt collection efforts against you. Further, creditors are prohibited from calling you after they learn that you have an attorney. Instead, the creditor must call your attorney to communicate about the case.

Negotiation with Creditors

Our experienced bankruptcy lawyers may be able to convince your creditors to reduce your payments, reduce the amount owed, or offer another loan modification. However, loan modifications should be approached with caution, and we can ensure the terms are favorable to you before you accept them.

How Does Chapter 7 Bankruptcy Work in York, PA?

Our bankruptcy lawyers can analyze your financial situation, advise you if you qualify for Chapter 7, and explain why a Chapter 7 case may be the best path forward for you.

An approved Chapter 7 bankruptcy plan permits a trustee to sell a person’s non-exempt property. The proceeds from the sale are then used to pay back your creditors. After a Chapter 7 discharge is granted, nearly all of your debts are wiped away. Chapter 7 bankruptcy is an extremely powerful tool to eliminate debt. Eligibility for Chapter 7 bankruptcy is means-based, so you may not qualify if your income is too high.

While Chapter 7 bankruptcy is typically better-suited for people with less property, in some circumstances it can also be beneficial to homeowners. Unfortunately, Pennsylvania’s state exemptions do not have a homestead exemption. However, Pennsylvania law permits you to select the federal exemptions that provide an exemption of $31,575 of equity in a primary residence for an individual. These exemptions can be doubled to exempt up to $63,150 of home equity for married couples.

How Does Chapter 13 Bankruptcy Work?

If keeping your property is of paramount importance, or your income is too high to qualify for a Chapter 7 bankruptcy filing, Chapter 13 may be the right solution for your financial situation.

Chapter 13 bankruptcy involves repayment plans, not asset liquidation. Repayment plans are typically 3- to 5-year plans where debtors make single monthly payments toward consolidated non-dischargeable debts.

That payment is then divided among creditors at a court-approved percentage. At the end of the plan, the individual has either paid off all of their debt or the court will discharge the remaining dischargeable debt. Many people can keep the majority of their property while stabilizing and rehabilitating their finances by selecting Chapter 13 bankruptcy instead of Chapter 7.

Top Questions Debtors Have About How Bankruptcy Works in York, PA

Bankruptcy can be an intimidating, confusing concept for many, and answering common questions debtors have can assuage some concerns about filing for bankruptcy, which could make the difference in regaining your financial footing.

How Does Bankruptcy Affect Your Credit Score?

Bankruptcy can have a profound effect on your credit score, so you should prepare for it before you file. The higher your credit score was before filing, the more substantial the drop will be after filing.

How Long Does Bankruptcy Stay on Your Credit Report?

Chapter 7 bankruptcies remain on credit reports for 10 years, while Chapter 13 bankruptcies only remain on credit reports for 13 years. Even if a bankruptcy case is removed from your credit report, you could continue to feel the effects of bankruptcy if you do not intentionally rebuild your credit and implement money management skills.

Will You Lose All of Your Assets During Chapter 7 Bankruptcy?

You will not automatically lose all of your assets during Chapter 7 bankruptcy if you protect them with liquidation exemptions. Pennsylvania’s state liquidation exemptions do not protect as many assets as federal exemptions, making them more popular among many Pennsylvania debtors. While there is no Pennsylvania-specific vehicle exemption for bankruptcy, there is a federal vehicle exemption that debtors can claim, along with other federal liquidation exemptions.

Does Bankruptcy Erase All of Your Debt?

Bankruptcy does not necessarily erase all of your debt, as not all debts are dischargeable. Dischargeable debts are those you may not have to repay during a bankruptcy case, such as medical debt or credit card bills. Non-dischargeable debts must be repaid during bankruptcy, such as child support, alimony, and taxes.

In Chapter 7 bankruptcy cases, debt discharges are given within 3 to 4 months of the case filing. In Chapter 13 bankruptcy cases, debtors receive discharges after completing repayment plans for non-dischargeable debts, which may take 3 to 5 years.

Who is Eligible to File Chapter 13 Bankruptcy?

Eligibility to file Chapter 13 bankruptcy is based on debtors’ income and expenses at the time of filing. If you have enough income to fulfill the requirements of your Chapter 13 repayment plan without falling behind on other living expenses, you qualify to file Chapter 13. Debtors without reliable incomes or too many living expenses will not be able to file Chapter 13 bankruptcy, and instead must pursue a Chapter 7 case.

Does the Automatic Stay Last Throughout Bankruptcy?

Generally speaking, the automatic stay lasts throughout your entire bankruptcy case. There are exceptions to this rule, such as when debtors file for bankruptcy multiple times within a short period. If a case is dismissed before all debts are resolved, the automatic stay will go away, and creditors may resume debt collection.

Can You File Bankruptcy Multiple Times in York, PA?

You can file for bankruptcy multiple times over the course of your life, but you may have to wait a specific amount of time in between filings. After a Chapter 7 case, you must wait 8 years from the initial filing date to file another Chapter 7 bankruptcy petition. After a Chapter 13 case, you only need to wait 2 years from the initial filing date to file another Chapter 13 petition.

Our York, PA Bankruptcy Lawyers Can Help You Today

Call Young, Marr, Mallis & Associates at (215) 701-6519 for a free case review from our bankruptcy lawyers.