Warminster, PA Bankruptcy Lawyer

It is probably safe to say that declaring bankruptcy is not necessarily anyone’s first choice. However, if you do end up incurring significant amounts of debt, you are likely to be pleased that bankruptcy is an available option. Simply put, the bankruptcy process is the most powerful legal means available to eliminate your debt.

If you are having financial difficulties due to an insurmountable debt burden, bankruptcy may offer a viable route to financial health. An experienced attorney, like those at Young, Marr & Associates, can answer your bankruptcy questions and guide you through each step of the process.

How Can Filing Bankruptcy Help?

A study by NerdWallet Health that has been cited by CNBC and many other national news organizations calculates that medical bills are the leading cause of bankruptcies in the United States. The study estimates that up approximately 2 million Americans are likely to file for bankruptcy due to medical bills or medical debts.

If any good news can be found in this national crisis, it is that medical debt can be handled by forms of bankruptcy. In fact, Chapter 7 bankruptcy is uniquely suited to eliminate unsecured debts like medical debts, credit card debts and any other debt that is not secured by physical collateral.

What Debts Can You Discharge with Bankrtuptcy?

While the main attraction of bankruptcy is that it can help you eliminate your debt, it also has a number of other benefits. One of the benefits that are often reported by clients of Young Marr is that they no longer have to handle or avoid, their creditors. This is accomplished through two means. First, being represented by an attorney in Pennsylvania means that your creditors must cease direct communication with you and discuss matters through your representation. Furthermore, when you file for bankruptcy, something called the automatic stay goes into effect immediately. The automatic stay prohibits your creditors from undertaking new debt collection attempts. The peace of mind that can come with stopping creditor calls can allow individuals to re-focus and direct their full energy toward a financial plan.

Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy is sometimes also referred to as a liquidation. Under the liquidation process, your non-exempt property is sold by the bankruptcy trustee. The proceeds from the sale of the non-exempt property is then distributed to your creditors. Unless your creditors’ object, which is rare for personal Chapter 7 filings, your remaining dischargeable debts will be discharged.

However, Chapter 7 bankruptcy does not mean that you will lose everything you own. The U.S. Bankruptcy Code defines certain types and values of the property that you are able to keep. This type of property is known as exempt property. An experienced bankruptcy attorney can more fully explain the extent of protections for your property under Chapter 7.

How Does Chapter 13 Differ?

Chapter 13 is often a more favorable bankruptcy choice for those with property that they would like to keep. Perhaps the most common examples of property that people do not want to lose in Chapter 7 bankruptcy are their home and their car. People agree to the more lengthy Chapter 13 plan where you must make ayments so that they can keep their property.

Chapter 13 repayment plans can last for 3 to 5 years. Through this plan, you make payments to the bankruptcy trustee who then sends your payments, as divided in your Chapter 13 plan, to your creditors. Provided that you make all payments, your remaining debts will be discharged.

Our Warminster, PA Bankruptcy Attorneys Can Help

If your debt situation has become unmanageable, contact an experienced bankruptcy attorney who handles both Chapter 7 and Chapter 13. A Young, Marr & Associates lawyer can provide trusted bankruptcy representation for you. To schedule your free consultation, call (609) 755-3115 in New Jersey or (215) 701-6519 in Pennsylvania or contact us online.

Have You:

Been paying credit card balances that seem to never go down?

Lost your job and are now having trouble keeping up?

Attempted to work out a payment arrangement to no avail?

Been notified of a mortgage foreclosure action?

Been denied for a mortgage or other line of credit?

If the answer to any of these questions is “yes” then bankruptcy may be an option that you should consider.

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