What Are the Benefits of declaring Bankruptcy?

Harrisburg Bankruptcy Attorney

What are the advantages from declaring bankruptcy?

There are a variety of reasons you may declare bankruptcy. One of them is to protect your Social Security benefits. The other is to gain an opportunity to start over. In general, many times people declare bankruptcy due to the fact that they're not able to keep up with their finances.

Chapter 7

Chapter 7 bankruptcy can help you to make a fresh financial start. It allows you to discharge your debts and not affect the assets of others. The process can be difficult and may be longer when student loans are involved or you have to sell your home.

A credit counseling appointment must be scheduled at least six months prior to filing. A court trustee will help you to liquidate your assets and will answer any questions you might have from creditors.

Additionally to that, the Bankruptcy Code includes a means test. The test evaluates your earnings and expenses. If your earnings are higher than the median of your state, the test assumes you're utilizing it.

Chapter 13

Chapter 13 bankruptcy can be the perfect way to reduce your debts. It also makes the payment of past due bills more affordable.

You must create a repayment plan prior to when you apply for bankruptcy. This plan specifies the amount you'll have to pay back to your creditors over three or five years. It is important to ensure that you earn enough to cover your expenses.

If you are considering filing for bankruptcy, you should look into a credit counseling agency that is not for profit that can provide you with free advice. They can also help you put together a payment plan.

In Chapter 13, the debtor can keep some assets. Not all assets are protected.

Automatic stay

The automatic stay, sometimes called the statute of limitations, is a legal process created to shield debtors from certain creditors. It means that creditors cannot file a lawsuit or take possession of a debtor's property when the bankruptcy case is open.

This can be a useful option for debtors who are harassed, but the benefits can be limited. The length of an automatic stay is contingent on the number of filings made in one year.

A few exceptions might apply. For instance, a judge may grant relief to an

A stay of automatic is granted for a time of a few weeks in the event that the property that is subject to restructuring does not require.

In the same way, creditors can ask for relief from the stay for a variety of reasons. These include re-enforcing a lien, collecting payments from a debtor, or preserving the value of an asset.


Liquidation refers to a procedure in where assets are sold in order to pay off creditors. The character of the business determine whether the debtor decides to liquidate assets or allow another person to do it on behalf. A court appointed trustee is appointed to manage the assets of the company and then distribute the proceeds to creditors.

Insolvency laws are designed to ensure that creditors receive fair treatment. Through the provision of adequate notice to all parties, this will be achieved. There are two major groups of creditors: secured and secured. Outright liquidation generally favors secured creditors more than unsecured creditors. However, non-secured creditors can also benefit.

There are many insolvency laws that are in force around the world. They differ in important ways.

Protection of Social Security Income from creditors

A person who is receiving Social Security benefits may file for bankruptcy to shield their earnings from creditors. There are some exceptions to the rule.

A creditor can garnish your Social Security payments if they get a judgment against a person. It is important to understand the debts that can be taken from your funds. It could be past due child support, alimony that is delinquent, and unpaid federal taxes.

The Social Security Administration can withhold benefits if you are subject to a court judgment for unpaid child support or Alimony. The Department of Treasury may also suspend Social Security payments for past-due federal taxes.

The transfer of benefits from one account to another is an exception to this rule. If you directly deposit funds into a benefit bank account, banks must protect the funds. But, if the cash is transferred to a creditor's account, it will take more effort to get it back.

Think about hiring a Harrisburg bankruptcy attorney Before you start the bankruptcy process. This will help ensure that you have the right legal counsel or information to go about your case or the goal you're trying to accomplish.


Citations and other links

How bankruptcy can help people pay off their dues

There are a variety of reasons why you could file for bankruptcy. It is essential to be aware of the options available to you to make the best decision for your needs. Here are some important tips to be aware of.

Chapter 7

Chapter 7 bankruptcy is an important option for those facing significant debt. This helps people make a financial turnaround and allows them to get a new beginning. If you're considering declaring bankruptcy, you should contact an attorney to get help.

Before you file for bankruptcy, you'll have undergo a credit counseling session prior to filing with a nonprofit credit counseling service. This will help you decide if filing for bankruptcy is your most suitable option.

In addition, you'll have to meet certain asset and income requirements. In certain states, you can use the state exemption system to keep your property from being sold to pay your creditors.

The process of filing bankruptcy generally lasts between four and six months. However, it can be longer if you need additional documents submitted to the bankruptcy trustee.

Chapter 13

If you're looking for ways to get out of debt, think about filing for bankruptcy. Chapter 13 is a plan that has been approved by the court which allows you to pay off your debt over three or five years. The advantages include a halt to foreclosure proceedings, an opportunity to make up due payments and also a method to shield your property from being snatched away by lien stripping.

You must submit a specific repayment plan to the court, which is then reviewed by a trustee. You will be given numerous opportunities to make modifications to your plan.

To reduce your monthly payments it is possible to extend the payment period for secured debts, such as mortgages. Alternatively, you can lower the principal balance on a secured loan.

If you have been discharged from the course of a Chapter 13 case, there are some rules. But, it's better to speak with an attorney.

Unsecured debt

There are two options to consider when you're in debt to pay it off, or apply for bankruptcy. Filing for bankruptcy will help you eliminate debt that is not secured and stop you from accruing more. There is no need to engage an attorney to file bankruptcy. To begin, you can use Upsolve an online, free tool.

Credit cards are the most well-known type of unsecure debt. They can be a great option to pay off debt once it's due, however they're more risky than secured loans.

The interest rates for loan that are not secured are usually more expensive than secured loans. Rates are determined by the credit score of the person who is borrowing. But, the borrower is able to improve their credit score by regular debt payments.

Certain debts that are not secured like medical bills, can't be eliminated through bankruptcy. You may be able make an arrangement to reduce your debt, or even a settlement. A professional in debt settlement can help you speak on behalf of your creditors.

Exempt property and discharged bankruptcy

If you declare bankruptcy, you are entitled to the right to exclude certain assets. This will allow you to pay your debts. Exemptions vary from state to state. An attorney is recommended for those who aren't sure about your rights.

A court-appointed trustee will collect non-exempt property and sell it. The proceeds are used to pay off creditors.

In addition to settling creditors, the bankruptcy trustee will also supervise the repayment plan. The plan allows you to keep the majority of your property. You can lose any other property if the court orders you to.

Chapter 7 bankruptcy is the most popular because it allows individuals to pay off the majority of debts. You are able to keep certain exempted property, but creditors can take it.

Effects on credit

Bankruptcy can have a huge negative impact on your credit score but it's not a quick fix. It could take a few years for your credit to be restored to a normal level.

Two things could affect your credit score when you declare bankruptcy. One is that you'll likely see an increase in your credit score during the first year. To ensure the accuracy of your credit report, it is recommended to review your credit reports.

It is also possible to take steps to boost your credit score. This can be accomplished by making significant lifestyle changes and creating an entirely new budget. If you take the proper steps, you should be able to see an improvement in your credit score.

It is also possible to try secured credit cards. They are like a regular credit card, but require an additional security deposit. Some of these cards are available without any upfront charges.

These are only suggestions based on educated guesses. For accurate information, you can get advice from experts in the field. In Harrisburg, PA a bankruptcy attorney can counsel you on the legalities of bankruptcy. Making sure you understand everything before you sign your name on that dotted line.


Can You Remain in Your Home If You File for Bankruptcy?

Can you keep your property even if you declare bankruptcy?

Secured debts may stay during bankruptcy

You may be wondering whether you can keep your house, car loan, or another secured debt when bankruptcy is filed. While the majority of the time, yes however, there are a few exceptions to this rule. It is essential to talk with an attorney regarding your specific situation and the implications of filing.

The first thing to understand about secured loans is that it is collateral that acts as a lien on the debt. If you do not make payments, the creditor is able to take possession of the collateral. But, they are unable to pursue you for bankruptcy. As long as you are making payments, you can keep your property, but you will not be able to use it to repay your secured loan. If you wish to retain your property, you will have to reaffirm the debt in Chapter 13.

Reaffirm your debts under bankruptcy if you're behind on mortgage or car payments. This will enable you to solve your financial issues and make progress with your payments. However, it will also allow the creditor to seize your property, which will result in you losing the value of your property.

Secured creditors are created by a security agreement like the deed of trust or mortgage, or judgment lien. If you do not make your payments they are able to take possession of the property and demand fees and interest. Once the debt is repossessed, you must reaffirm your loan or the debt won't be discharged.

You can save hundreds of dollars by keeping your collateral. You should keep the insurance that you paid to secure your purchase and continue to make your payments. Negotiate the terms of a new contract, or transfer your collateral. Negotiations are feasible and could lead to your creditor cutting or lengthening the time it takes to pay it, or offering additional terms.

Another method to stay out of foreclosure is to dispose of your property. Some states allow creditors to acquire the equity that you own in your home, in the event that you're behind in your mortgage. If you're in an emergency situation and require cash, selling your property will help pay back your loan.

Reaffirming the debt in Chapter 7 bankruptcy is another alternative. Although most debts can be discharged under bankruptcy, the liens attached to secured debts aren't. These liens will still be on your credit report, and they can affect your credit score. Therefore, you must check your credit report after filing for bankruptcy.

There are certain debts that are able to be paid off but remain on your credit record. There is an additional statute of limitation which requires a certain amount of time to remove the debt from your credit history. Many times, people believe they understand the regulations and rules, only to they discover that what they thought to be true was nothing but. Rules change, and often are not explained very well. The best thing to do is to research prior to filing for bankruptcy. It is not something that anyone would like to declare bankruptcy, however, if you're in that circumstance, you must know all you need to know prior to deciding.

The bankruptcy process can be complicated. One important piece of information to keep in mind is that an automatic stay is legal precaution to stop the creditor from taking any other actions against you. The debtor is entitled to stop any collection activity and if you don't the creditor may have the right to petition for a stay to be lifted by the court. Look at websites such as https://www.ljacobsonlaw.com/pa/harrisburg-bankruptcy-attorney/ for more information on bankruptcy and seek professional advice to answer your questions.

There's a lot bankruptcy fraud that is circulating. Some people are tricked to believe they're being assisted by a bankruptcy attorney, however, they are in deeper financial trouble than they realized. Before signing any legal documents, make sure you've review the small print.


What You Need to Be aware of about bankruptcy

What You Need to Be aware of about bankruptcy

Bankruptcy is a legal process used when a person or an organization is unable to pay its obligations. It's usually enforced by a court order. It is a way to offer relief for those who are in a position to not pay the debt. When filing for bankruptcy, there are several aspects to be aware of.

Discharge does not eliminate debt

A discharge is an order from a court stating that the debtor has been released from all personal liability for a specific debt. In order to be qualified for a discharge, there are certain criteria. It is crucial to remember that not all debts can be resolved through bankruptcy.

Alimony, student loans, as well as child support are a few examples of non-dischargeable debts. These debts have to be paid to the creditor.

A bankruptcy is a legal procedure which allows debtors to organize and eliminate their debts . The court could also order additional repayments and could prolong the bankruptcy duration.

While bankruptcy can help to eliminate a number of debts, it is also possible to eliminate a number of exceptions to the law. Some debts are not instantly erased, for instance, the debts for fraud and student loans, as well as government-funded debts, and spousal support.

The bankruptcy exemption excludes property

Debtors are permitted to exempt certain assets from Chapter 7 bankruptcy. They can include anything from furniture to clothing or even a computer. The exemptions are determined by the worth of the item minus any liens or mortgages. It is important to keep in mind that this policy can differ according to the state. For example, in Colorado, a debtor can exempt farm equipment for up to $25,000 if it helps the owner's income.

A bankruptcy trustee could also sell non-exempt properties to pay creditors. This is usually done at a discounted price. The trustee pays the extra amount to the owner if the value of the asset is lower than the exemption value. The amount paid is usually equal to the value estimated for the asset, minus the charges of selling the asset.

After bankruptcy liquidation of property which isn't exempt

Chapter 7 bankruptcy often includes the liquidation of property that is not exempt. The bankruptcy trustee is responsible to collect and liquidate the debtor's assets. The trustee distributes the proceeds of the sale of assets that are not exempt to creditors once the debtor has been discharged.

A trustee's decision to liquidate or not liquidate a specific asset is contingent upon a number of factors. The cost of liquidation, as well as the possibility that enough funds will be available must be taken into consideration by the trustee. The trustee must also consider whether the asset is practical to dispose of. The asset's worth should be weighed.

Follow the decision of the trustee.

For example, if you own a luxury vehicle that is worth more than the total value of other belongings, you might not be able to sell it. It could be difficult to locate someone willing to purchase your car.

Opposition to the discharge of bankruptcy

Your creditor might oppose the bankruptcy filings. This is known as an adversary proceeding. The objector must prove that there is a reason for an objection.

An objection may be filed in the event of a materially incorrect statement or the misappropriation money in a fiduciary position. A creditor can be able to file an objection for failure to comply with the court's order. For instance, if you didn't provide your tax documents as required by the Bankruptcy Registrar, then your LIT could be able to block your discharge.

Debtors can respond to objections by asking the court to reopen the case. Sometimes, the Bankruptcy Registrar will decide that there is no need for further action. But other times the trustee may require further payments.

An objection to discharge could also arise when the debtor has fraudulently transferred title to property. Another common reason is a failure to account for assets lost during the bankruptcy.

The formal proceedings may last for years.

The long-term execution plan is one of the most challenging aspects of filing for bankruptcy. Although creditors can argue, it's not unusual for them to do so. However, patience and perseverance are key. With the assistance of a credit counselor or debt coach, you can begin the journey to an uninvolved future. No matter what the cause, a fresh start is the best option. The trick is avoiding the pitfalls and identifying the stumbling blocks. There's a no-cost help line and online resources that will steer you towards the right direction. So, if you're in the market for a credit counselor ensure you've done your research and avoid going to the dark side.Seek professional guidance from experts when you require. In Harrisburg, PA a bankruptcy attorney can answer your questions and assist you with the legal procedure.


What exactly is Bankruptcy?

What exactly is Bankruptcy?

In general, when a person is unable to pay back their debts, they seek relief from their debts via bankruptcy. Bankruptcy is a legal proceeding that is typically imposed through the court's order.

Chapter 7

Chapter 7 is a different chapter to chapter 13. It permits people, companies and non-profit organizations to discharge most of their debts provided they satisfy the bankruptcy means test. If you'd like to determine whether your debt can be discharged, you should consult a bankruptcy attorney.

The test for bankruptcy is a way to determine your earnings and expenses as well as determine your capacity to pay your debts. It is possible to file a repayment plan with your creditors in some circumstances. The repayment plan could involve paying down your obligations in monthly installments over three to five year.

Along with the payment of your debts, your trustee could also attempt to recover some of your assets. It is possible to keep some assets contingent on your circumstances. In some states, you might have the option of using the federal exemption system to protect certain assets.

The Legal Services Corporation offers free legal aid to bankruptcy. There are bankruptcy counseling services also available. Credit counselors can help you determine whether you are eligible for bankruptcy, and can help you create the repayment plan. It is recommended to consult a professional. An Harrisburg bankruptcy attorney will assist you in the legalities involved in declaring bankruptcy.

The Bankruptcy Code requires that you submit a statement of financial responsibility to the bankruptcy court. The certificate must prove that you've completed a financial management. A profit and loss statement might be required. This will enable your lawyer to determine if you are allowed to retain your home.

Chapter 7 doesn't allow the payment of some debts. This includes the child support obligation, alimony and loans that are guaranteed by a government department.

Chapter 7 bankruptcy is a popular form of bankruptcy. But there are a few drawbacks. It could be a means to make a fresh start but it won't resolve all of your financial troubles. Chapter 7 cannot discharge some obligations like tax debts and student loans.

Chapter 13

Generally it is the case that a Chapter 13 bankruptcy requires the debtor to come up with an arrangement to pay the creditors over a three-to five-year period. The plan is approved by a bankruptcy judge and a judge may modify the plan in case it is needed. The repayment plan is typically determined by the amount of income the debtor earns per month.

If the debtor misses payments or payments, they could be denied Chapter 13 relief. They could be required to convert into Chapter 7 bankruptcy. If you are in the Chapter 13 case, the debtor can't apply for an individual or business loan. There is a possibility of having to pay back certain taxes.

The Trustee must receive an exact copy of the debtor's income report and proof of financial management. They must also submit copies of all late filed federal tax returns.

After the plan has been completed, the Trustee will send an update to creditors stating how much money the debtor has paid to them. The remaining balance to the plan will also be mentioned in the report. The Trustee may also be against late claims. The court will approve the plan, and the claims will be dismissed.

Within 30 days of filing bankruptcy, the first payment has to be made. The Trustee should also receive a copy of the invoice from the debtor's attorney. The debtor could be able to modify the terms of the agreement.

If a debtor fails to make a payment and the Trustee is not able to make a payment, they will send the debtor a notice. The notice acts as a legal "stop signal" for the debtor's creditors. It is against the law for debt collectors or creditors to try to collect the debt.

If a debtor is late on several payments could be ineligible for future payments. If a debtor is not able to make the payments and the creditor is unable to collect, they can ask the court to permit them to recover the amount owed. The court could also permit a creditor to repossess the vehicle.

An attorney should be contacted immediately in the event that a debtor fails to pay a payment. They might be able to alter the repayment plan to cover the late payments. It is also possible for a bankruptcy judge let them change their case into Chapter 7.

Chapter 13 bankruptcy is designed for individuals who are unable to pay their dues. It helps co-signers stay safe and stops foreclosures and repossessions. It can be used to aid debtors in getting back on track and avoid future problems.

Reasons why consumers file bankruptcy

The Reasons Consumers File Bankruptcy

A variety of factors can be responsible for people having to file for bankruptcy. These include poor personal finance decisions, medical debts, and mortgages on homes. A lot of consumers also file multiple times and put an immense amount of stress to their financial situation.

Millions of Americans are struggling with medical debt. Unexpected medical bills can quickly escalate into a financial disaster. People who are in poor health are more likely to accumulate medical bills.

The United States spends a lot of dollars on health medical care. The United States spends more per capita in health care than any other. Yet, tens of millions of people are uninsured or underinsured, leaving them at risk of paying huge medical bills.

Many Americans are living paycheck to paycheck. In fact, a recent study found that nearly five out of five households would pay for medical expenses. However, fortunately, Congress has passed legislation to help pay for the upfront cost of healthcare.

The Affordable Care Act capped out-of-pocket spending. While this has helped reduce the amount of medical debt that certain Americans have, others find it still difficult to afford their healthcare.

Furthermore, the number medical debt collectors has grown. They may sue you, take legal actions against you, or even put an obligation on your real estate.

Often, medical debt collectors add additional fees on interest-free debt. It is also possible to see unpaid medical bills added to your credit score. Unpaid medical bills could stay on your credit file for a period of seven years.

The best approach to handle medical debt is to stay clear of it. If you find yourself in a situation wherein you are unable to pay your bills, you may have to file for bankruptcy.

Medical debt is among the most common reasons people need to file bankruptcy. According to the Consumer Bankruptcy Project, about half of bankruptcy debtors cite medical expenses as a contributing factor to the bankruptcy.

A mortgage for a home is a major financial commitment. It doesn't matter if you're purchasing a house for yourself or with a partner you'll need to be aware of all the costs. It's not a good idea to end up with a loan you can't afford.

Before you apply for a mortgage the first thing you need to ask is which type of mortgage is best for you. Thankfully, there are several choices available. There are many options available to you.

You can choose a conventional loan with an adjustable or fixed interest rate or an VA loan, or an FHA loan. You can also choose one with a long or short-term.

Gathering all relevant information is the best way to choose which kind of mortgage you should get. This includes information on the conditions and terms for the loan. It also helps to get a local bankruptcy lawyer on hand to make sure you understand all options. In Harrisburg, PA a bankruptcy lawyer can speak with you to discuss your questions.

You must also determine whether you qualify to receive loans. If you're a service member or a veteran, you could be eligible for the VA loan. A USDA loan is available to rural residents. Be sure to find the most suitable mortgage.

The process of getting a mortgage after bankruptcy can be a challenge however, it's not difficult. It is important to put in the effort and find a lender who is willing to accommodate your needs. However, first, you'll need to have good credit. That means you'll need to obtain an approval prior to applying. The best way to achieve this is to find the most competitive rate.

The use of bankruptcy to stop garnishing wages may be a viable option to pay off the burden of. In reality, you could even get back the wages you were able to garnish within 90 days after filing.

Different types of debt have different laws on wage garnishment. For example, alimony and child support may be garnished more frequently than taxes. The amount of the wages garnished can't exceed 25 percent of an individual's disposable income.

You are able to garnish whatever you wish, depending on the state. Certain states are exempt from medical or government aid. There are also limits on the amount of personal property that can be garnished.

A majority of states allow individuals to ask for an order from a judge to stop garnishment of wages. In order to request an exemption, you must to show proof that you have exempt income. You can, for example you can claim your Social Security benefits to be exempt.

There are many alternatives to stop garnishing your wages. One way is to use an expert in credit counseling to negotiate the terms of your payment with your creditors. A credit counseling company might charge a fee for its services. However, it may also be able to cut down the amount you need to pay.


Harrisburg, PA Bankruptcy Attorney

Bankruptcy and Collections Do you have to pay back debt after bankruptcy?

Bankruptcy and Collections - Do You Have to Pay Back Debt After Bankruptcy?

Whether you are in bankruptcy or not but there are some things that you should know regarding debt collection. This includes how to find a debt collector and how to have your debts wiped out.

Discharged debts

Your situation will determine if your debts are eliminated in bankruptcy. The debts you owe must be able to be paid. To repay your creditors, you might have to sell your house or car. Your debts and assets will be reviewed by a bankruptcy trustee who will determine if your debts can or cannot be discharged.

There are a variety of reasons why a court will refuse to let a debt be discharged. One reason why a court won't release a debt is due to the fact that the debtor could have assets hidden from the public eye. The creditor may be able to prove that the debtor is carrying hidden assets.

The bankruptcy court could not discharge the debt as the debtor had not disclosed all of their assets. However, the court embraced the position of the debtor, declaring that there were not enough funds to pay for the dues.

The Town went after Debtor through a District Court Action and a Compulsory Counterclaim. They also attempted to foreclose municipal liens. The Town also attempted to collect discharged debts through SS 524.

Collection efforts

You could receive calls from creditors during bankruptcy procedures. This must be stopped by law. State and federal laws protect you. If you're being targeted, you may be able to make a argument to file an action against your creditors.

The Fair Debt Collection Practices Act (FDCPA) sets out the legal obligations that debt collectors have to follow in order to comply with the law. A judge can also impose sanctions on debt collectors who break the law. If a collector is found not complying with the law may face sanctions or even have to pay attorney costs.

Fair Credit Reporting Act (FCRA) assures creditors that accurate information is reported. This is important, as incorrect accounts could damage your credit. To ensure accurate information regarding your debt, always verify your credit report.

You also are protected from collection attempts by the automatic stay. This is a court order that will stop creditors from pursuing your debt.

Discrimination by governmental units and private


If you're an employer in the private or public sector, the law prohibits you from taking any action based on a bankruptcy filing. Besides, you can't disqualify bankruptcy filers from loans offered by the government. It is still possible to consider them when evaluating a candidate's creditworthiness.

It is important to learn about the law and its dangers to avoid discrimination. Additionally, you might consider hiring an attorney to assist you with your situation. An Harrisburg bankruptcy lawyer will assist you in understanding your rights. This is especially important for businesses that operate in more than one jurisdiction. The third circuit was kind enough to take on a timely and relevant issue for private sector companies.

Specifically, specifically, Third Circuit found the Bankruptcy Act's most well-known acronym to be a non-starter. This means that bankruptcy can't be deducted from taxes. It isn't possible to exclude bankruptcy filers from government loan programs. You can't stop bankruptcy filings from receiving government benefits. The good news is that even if you can't file for bankruptcy, you can't sue a private or governmental employer over discrimination.

Identifying the identity of a debt collector

It can be difficult to spot the debt collectors in bankruptcy. Scammers typically pretend to be debt collectors for creditors and are looking to make a quick payment. To get you to pay the amount owed, they could employ various methods.

You might require legal assistance when you are in a similar situation. If a lender violates the law, he/she she can be accused of causing damages. It is also possible to revisit your bankruptcy case and request an adversary proceeding. This is an adversary legal proceeding that may require the hiring of an attorney.

If you are unsure whether your debt is cleared, consult your bankruptcy attorney. This will help you make the right decision for your future. You might be able to negotiate a less expensive settlement with the debt collector.

A bankruptcy discharge order prevents creditors from pursuing the dischargeable debt. The court will also issue injunctions to stop creditors from contacting or trying to collect debt discharged. This will stop wage garnishments and car repossessions, as well as foreclosure.