York County, PA Bankruptcy Lawyer
The reasons for a financial disaster are many. 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 provide a powerful and effective method of reducing or eliminating debt. For 20 years the attorneys at Young, Marr & Associates have helped people who have fallen on hard times. We can advise you on whether bankruptcy is appropriate. If so, we work with you through every stage of bankruptcy.
The Benefits of Hiring a Bankruptcy Lawyer
Representation by an experienced bankruptcy attorney can provide relief from most collection calls. The automatic stay prohibits new debt collection efforts from beginning against you. Further, creditors become prohibited form calling you after they learn that you are represented by an attorney. Instead, the creditor must call your attorney. What this means is that an experienced attorney may be able to convince your creditors to reduce your payments, reduce the amount owed, or to another loan modification. However, loan modifications should be approached with caution. 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.
What is Chapter 7 Bankruptcy?
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. However, you must be able to qualify for Chapter 7 since Chapter 7 is means tested. An experienced bankruptcy attorney can analyze your financial situation and advise you if you would qualify.
While Chapter 7 bankruptcy is typically better-suited for people with less property, in some circumstances it can be beneficial to homeowners as well. Unfortunately, Pennsylvania’s state exemptions do not have a homestead exemption. Pennsylvania law permits you to select the federal exemptions however that provide an exemption of $22,975 in equity for an individual. These exemptions can be doubled to $44950 for married people.
What is Chapter 13 Bankruptcy?
When keeping your property is of paramount importance or if you cannot pass the Chapter 7 means test, Chapter 13 can provide a better option. Chapter 13 plans are typically a 3 to 5 year plan where the individual makes a single monthly payment. That payment is then divided amongst creditors at a court-approved percentage. At the end of the plan, the individual has either paid off all of his or her debt or the court will discharge the remaining dischargeable debt. Many people are able to keep the majority of their property while stabilizing and rehabilitating their finances by selecting this bankruptcy option.
Our York County, PA Bankruptcy Lawyers Can Help You Today
Bankruptcy can provide real financial relief and a pathway to financial health for many people. However, a bankruptcy and its details should be carefully considered prior to taking any action. An experienced Young, Marr & Associates bankruptcy attorney can advise you on a recommended course of action. To discuss your financial options in an initial consultation call our offices or contact us online.