Bankruptcy Attorneys Serving Abington PA

When you run into financial difficulties, life can become very stressful. Even if you are strict about budgeting your money, a sudden, unexpected illness or job loss can wreak havoc with your financial well-being. You may be facing collection calls and letters. A creditor may have obtained a judgement and is now threatening to garnish your wages or bank accounts. There is a way to stop those collection calls and garnishments, however. Bankruptcy can give you a fresh financial start and put you back on the path to financial freedom.

Chapter 7 Bankruptcy Attorneys Serving Abington, PA

Chapter 7 bankruptcy can eliminate all of your unsecured debt. Credit cards, personal loans and other debt that is not secured with property is unsecured debt. It is also known as straight or liquidation bankruptcy as some of your assets may need to be sold in order to repay creditors. However, the law allows you to keep certain property under what is known as exemptions. These may include your home, vehicle, household furnishings, Social Security payments and even tools you must use for work. If you are not behind in your mortgage or a second car payment, you may not have to claim them under Chapter 7. However, if you are behind or have significant equity in your home, the trustee may require you to surrender the property in order to pay your debts.

Chapter 13 Bankruptcy Attorneys Serving Abington, PA

Under Chapter 13 bankruptcy, you keep your property but pay back all or a portion of your debts over the next three to five years. Because you pay most of your debts, this type of bankruptcy is known as a reorganization bankruptcy. You will need to prove you have adequate income to make the Chapter 13 payments. There are also limits on how much secured and unsecured debt you may have. Some debts will be priority debts, such as child support, alimony and tax debt. Your repayment plan will include those payments as well as a portion of unsecured debt. You may be able to include any past due mortgage or vehicle debts in the repayment as long as you can pay the regular payment during the repayment process.

Loan Modification Attorneys Serving Abington, PA

If you have fallen behind on your mortgage, you may be eligible for a mortgage loan modification. A mortgage modification adjusts the terms of your mortgage in an effort to lower the payment to an affordable level. It may be a change in the number of years you must pay, such as changing a 30-year mortgage to a 40-year mortgage or it may be an interest rate reduction.

Real Estate Attorneys Serving Abington, PA

Before making any decisions regarding your home or your mortgage, it is important to discuss your situation with our real estate attorneys. They can advise you the best steps you should take and help you through the process of a mortgage modification or home sale should it be determined that is the best solution for your circumstances.

The best thing about filing for bankruptcy is something known as an automatic stay. Once the bankruptcy is filed, creditors may no longer contact you about past due bills and must speak to your attorney throughout the bankruptcy process. This includes garnishments, wage attachments and other forms of collection practices.

If you are facing financial difficulty and want a fresh financial start, contact the bankruptcy attorneys at GM Law today. You can arrange for an initial, no obligation consultation by calling 1-866-964-6529 or completing the easy form on our website today.