If you are facing mounting debt coupled with either an injury or the loss of a job, you may consider declaring bankruptcy. However, this decision should not be made lightly. As a Delaware County Chapter 7 bankruptcy lawyer in Boothwyn, PA, attorney Michael Malarick is available to provide legal aid to assist you with the decision making process.
As a PA licensed Delaware County bankruptcy lawyer, Michael T. Malarick, Esquire, is available to handle your bankruptcy matter in and around the following areas: Boothwyn, Upper Chichester, Marcus Hook, Aston, Broomall, Collingdale, Folcroft, Havertown, Drexel Hill, Ridley Park, Upper Darby, Media, Philadelphia, and Yeadon.
If your credit card debts, medical bills, and secured personal loans together with day-to-day living expenses have become unmanageable, a Chapter 7 bankruptcy may be right for you. However, you may only file a bankruptcy once every seven years. As a Delaware County Chapter 7 bankruptcy lawyer, Michael Malarick can provide you with a quick roadmap for making this decision.
In order to file a Chapter 7 petition, you must pass the Means Test. There are two steps to take to pass the Means Test. First, if your income is below the median income for your household size, you pass the test. If your income is above the median income, then you may deduct certain expenses to reach a specified amount of income which may be used to repay unsecured debt and you can then file a Chapter 7 petition.
Delaware County Chapter 7 Bankruptcy Attorney – ADVANTAGES AND DISADVANTAGES OF CHAPTER 7
The advantages of a Chapter 7 bankruptcy petition are:
- Eliminate dischargeable debts;
- No limit to amount of debt discharged;
- Future income remains with the debtor;
- There is no repayment plan; and
- The petition is finished within 3 months.
The disadvantages of a Chapter 7 bankruptcy petition are:
- Not all debt is discharged (past due taxes, child support, and student loans may remain);
- A cosigner to a loan may remain fully liable for your loan;
- The bankruptcy trustee will sell your non-exempt property; and
- The bankruptcy will remain on your credit report for 10 years.
When evaluating the advantage and disadvantages of a Chapter 7 bankruptcy, you should keep in mind that the bankruptcy estate will include After Acquired Assets. These assets (inheritance, insurance proceeds and a property settlement from divorce) that were acquired within 180 days after your petition was filed, would become part of the bankruptcy estate available for the trustee to use to repay your debt.
Delaware County Chapter 7 Bankruptcy Attorney – CHAPTER 7 ALTERNATIVES
Some alternatives to a Chapter 7 bankruptcy petition are to determine whether you are judgment proof, to sell any valuable property you may have, to negotiate with your creditors, and to consider Chapter 13 bankruptcy.
ASSESS YOUR PROPERTY
Before filing a bankruptcy petition, you should gather all of your financial documents and itemize all of your property. When itemizing your property, you must decide whether the property is exempt or non-exempt according to the Federal or State exemption rules. The Federal and PA bankruptcy exemptions are discussed on the following page, what property is exempt from bankruptcy. Contact Delaware County Chapter 7 bankruptcy lawyer, Michael T. Malarick for assistance with your petition.
Another decision to make when assessing your property is what to do about secured debt. Secured debt is debt secured by collateral—such as a car loan. Secured debt may either be reaffirmed, redeemed, or surrendered. A debtor could reaffirm a debt—or agree with a creditor that you still owe the debt even after the bankruptcy discharge.
The property of a secured debt may also be redeemed, that is, paying the creditor the replacement value of the property. Generally, property is redeemed when the equity in the property is protected by an exemption. If an agreement on the redemption price cannot be reached with the creditor, a valuation hearing by the bankruptcy court will decide the amount.
Finally, secured property may be surrendered or given back to the creditor. When the property is surrendered in bankruptcy and the debt is discharge, you are no longer liable for the secured debt and lien.
As an experienced Delaware County Chapter 13 bankruptcy lawyer, Michael T. Malarick is available to helo you decide if a Chapter 13 or Chapter 7 bankruptcy petition is right for you. For help with your Delaware County bankruptcy petition, contact our Delaware County Chapter 7 bankruptcy lawyer, Michael T. Malarick, located in Boothwyn, PA for a free initial consultation today.
Other Areas of Practice
- Car Accident Lawyer in Delaware County
- Workers Compensation Lawyer in Delaware County
- Divorce Attorney in Delaware County
- Chester County Car Accident Lawyer
- Upper Darby Car Accident Lawyer
- Expungement Attorney in Delaware County
- Aston car accident lawyer, injury and Divorce Attorney