Address: York, PA 17403 USA
Phone: 717-349-1871
Website: https://www.bankruptcy-york.com/
Reaching the stars for our York bankruptcy clients
But while you are dealing with frustration and stress, you should evaluate your situation and find help as soon as you can. Regardless of the intensity of the situation, you should take action and file for bankruptcy before things get out of hand.
If you are ready to find a way, First Capital Bankruptcy Solutions in Pennsylvania can help you connect to the right bankruptcy lawyer who can handle your case professionally. We make sure that we review your case thoroughly and connect you with professionals who are always ready to deal with your problems.
The good thing is that the consultants in our legal center are just a phone call away. Our team ensures that they schedule your appointment with the best York bankruptcy lawyers, without any hassle-free procedures. Besides, we help create a connection between you and your bankruptcy lawyers in York Pennsylvania and take updates throughout the legal process.
If you really want to take a fresh start, contacting a consultant at First Capital Bankruptcy Solutions will be the best decision that you will make today.
What is bankruptcy?
Defined as a common legal proceeding, bankruptcy involves a business or a person who has failed to pay their debt. This process begins when a debtor files a petition, which results in the evaluation of their asset. In some cases, the assets may also be used to pay off some amount of debt.
This legal process gives businesses and individuals a chance to restart. It allows them to forgive debt that they are unable to pay and simultaneously, give creditors an opportunity to obtain some payment based on any assets, ready for liquidation.
Interestingly, a bankruptcy case benefits the economy. For instance, it gives debtors a chance to start again and feel relieved from their debt obligations. On the other hand, creditors get a certain portion of debt payment that helps them grow, and continue with their dealings.
In the United States, almost all bankruptcy cases are dealt with in federal York bankruptcy courts. A professional bankruptcy judge takes all the decisions, such as the eligibility of the debtors to file a case and whether a debtor should be discharged from their debts or not.
Different bankruptcy filings
The nature of a bankruptcy filing falls under one of the many chapters of a Bankruptcy Code. These chapters are Chapter 7, Chapter 11 and Chapter 13. Each chapter of the code deals with a certain bankruptcy plan, and so also affects the total cost and complexity of a case. Below we have discussed all these chapters in detail:
Chapter 7 bankruptcy
Individuals and a few businesses too, often file for Chapter 7 bankruptcy. This legal proceeding usually suits those that have no or very few assets. This category of bankruptcy allows debtors to dispose of all their unsecured assets, such as medical bills and credit card balances. Some nonexempt assets, for instance, second homes, family heirlooms and stocks must also be liquidated to pay off any unsecured debt. Simply put, if you plan to file Chapter 7 Bankruptcy, you will have to sell all your assets to pay any debts. However, if you don’t have assets and only own things such as clothing, tools or vehicles, you might get an exemption from paying any unsecured debt.
Chapter 13 bankruptcy
Also known as the “wage earner’s plan”, Chapter 13 Bankruptcy is for people and businesses who have made a lot of money to be eligible for a Chapter 7 Bankruptcy. If you are an individual or runs a business with consistent income, then Chapter 13 Bankruptcy can allow you to create repayment plans that are workable. These plans are installment-based and extend for a period of three to five years. If you are successful in paying off your creditors, the courts give you the liberty to keep all your nonexempt assets and property with you.
Chapter 11 bankruptcy
This bankruptcy is often filed by businesses, and gives them a chance to reorganize themselves and start earning profits. When a business files a Chapter 11 Bankruptcy, it gets an opportunity to curate profitability plans, find different chances to increase their revenue and reduce costs, where required. After filing this particular bankruptcy, the preferred stockholders might continue receiving payments, but the common stockholders do not get anything. So for instance, if you own a cleaning service business, after filing the Chapter 11 Bankruptcy, you can increase the rates of your services and earn more profits gradually. This bankruptcy category allows an entity to continue its business activity but at the same time, demands them to curate a debt repayment plan based on the court’s requirements. Also, in some rare cases, an individual rather than a company, may also be allowed to file a Chapter 11 Bankruptcy case.
Benefits of filing for bankruptcy in York
Regardless of which bankruptcy you file for, there are some common benefits that you as a debtor might reap.
Chapter 7 Bankruptcy gives you a much-needed fresh start. It gives you relief from a certain amount of debts, which encourages you to start a new journey. Alternatively, if you want to continue with your existing business, as it gives you a consistent income, Chapter 13 Bankruptcy allows you to create a workable plan for your repayments.
Bankruptcy helps cancel all the liabilities that are at least three year old.your existing business, as it gives you a consistent income, Chapter 13 Bankruptcy allows you to create a workable plan for your repayments.
This proceeding is a much more convenient way to escape from lawsuits, defaults and any missed repayments.
Even bankruptcy can’t save from any debt related to student loans, but it does prevent lenders from any aggressive or uncalled collection action.
Bankruptcy puts an end to things such as, repossessions, threats from creditors and even lawsuits.
Bankruptcy allows many exemptions, so it does help you to keep some things when paying off a debt.
Other less common bankruptcy types
While the above three proceedings are quite common, there are a few more bankruptcy types that are rare but available for different debtors.
Chapter 7 bankruptcy
This type is usually available for municipalities that are financially distressed. For instance, towns, cities and even some school districts can file Chapter 9 Bankruptcy. Under this proceeding, municipalities are not asked to liquidate their assets. However, they are obliged to curate a repayment plan to pay off all the debt over some years.
Chapter 12 bankruptcy
This bankruptcy works as a relief for fisheries and family farms. It allows them to keep their assets but orders them to design a plan to pay off their debts.
Chapter 15 bankruptcy
This bankruptcy deals with mostly cross-border cases and is often filed in the home country of the debtor.
Why do you need a bankruptcy lawyer in York, Pennsylvania?
Now you may wonder, “Why do I need a bankruptcy lawyer York Pennsylvania to file for bankruptcy? Can’t I deal with this case myself?”
Well, the answer is, no. If your case is simple and straightforward, you might choose to deal with this hassle yourself. However, if it involves valuable assets, a lawyer is the best individual to get you out of this trap.
While hiring bankruptcy lawyers in York, Pennsylvania, may seem quite costly and daunting, it is the best way to deal with this legal proceeding.
Here are some ways in which York bankruptcy attorney can help you.
Bankruptcy planning
Bankruptcy lawyers in York, Pennsylvania can easily recognize all the hiccups that may arise during the planning stage. For instance, sometimes bankruptcy is not the final solution, and so a lawyer can help you guide on other alternatives that might work for you. This suggestion may save you lots of time and money.
Additionally, York bankruptcy attorneys help you choose the type of bankruptcy in York Pennsylvania that may work for you. Since each type serves a different purpose, a lawyer is educated enough to guide you in the right direction.
What’s more, bankruptcy planning may sound daunting if you are doing it for the first time. In that case, an attorney with years of experience can guide you on every stage and then help you curate a successful plan within a short time.
Bankruptcy preparation
A bankruptcy lawyer in York Pennsylvania will conduct the means test for you. This is a formula-based test that helps measure your expenses and income to determine your qualification for Chapter 7 or Chapter 13 Bankruptcy.
In addition, a lawyer is qualified enough to give a realistic value to your assets and allow you to disclose them honestly.
Besides, since every state comes with its own exemption system, your hired attorney will be the best person to understand the rules and apply them in your favor.
Unfortunately, there are a few debts in bankruptcy that hardly get discharged.
On the other hand, you will have to meet certain conditions to discharge some debts. In that case, you might not be aware enough to know what goes and what not, so an attorney’s presence may help guide you throughout the process.
During bankruptcy
After you have filed for bankruptcy, you will be asked to do paperwork and complete your schedules. You will have to disclose all your financial data, including debts, assets, or any current financial transactions.
In that case, you may require bankruptcy attorney York Pennsylvania that can value the assets, evaluate your income, and can also measure the necessary and reasonable expenses.
Moreover, bankruptcy lawyers in York are necessary individuals who can prepare your mind for the challenges that you might face throughout a bankruptcy case. He can guide you on the steps you can take to qualify for certain eliminations and may also warn you about the actions of your creditors.
Before you file for bankruptcy, you may be asked to sign some paperwork, confirming certain information. In that case, bankruptcy lawyers York ensure that the testimony you have signed is complete and correct.
Another benefit of hiring bankruptcy lawyers York Pennsylvania is that they are the best person to handle creditors. In some cases, creditors do not stop collection even after a case has been filed. This leads to the violation of automatic stay.
In such situations, a lawyer may demand compliance. Moreover, in worse cases, he may also request the York bankruptcy court to contempt the creditor.
A bankruptcy attorney in York, Pennsylvania may also help you with some negotiations. For instance, if you have filed for Chapter 7 Bankruptcy, your bankruptcy York Pennsylvania lawyer may seek a smart reaffirmation agreement with your creditor and help you keep your car or house.
Additionally, during a Chapter 13 Bankruptcy case, the best York Pennsylvania bankruptcy attorneys may negotiate with creditors regarding payments terms, collateral value and reduced interest rates for an affordable repayment plan.
In a nutshell, bankruptcy lawyers ensure that your case proceeds smoothly, and that no one takes advantage of your situation. Pretty rare, but an attorney may also help you resolve any post-bankruptcy violations.
In addition to that, many York bankruptcy attorneys also guide you in rebuilding your credit reputation. With the help of their handy tips, you may get new offers after your bankruptcy York Pennsylvania case is entirely closed.
A lawyer is a helping hand that you require in your weakest point. But how can you find an attorney that lives up to his promises and doesn’t leave you in the middle of this crisis? Moreover, what attributes should a bankruptcy attorney have to help you choose the best qualified attorney for your bankruptcy case?
Business Hours:M-Sat 8am-8pm
