What are the advantages of Declaring Bankruptcy?

Harrisburg Bankruptcy Lawyer

What are the advantages from declaring bankruptcy?

There are many reasons you might file for bankruptcy. One reason is to keep your Social Security benefits. Another is to give yourself an opportunity to start over. Many people file for bankruptcy because they can't maintain their financial obligations.

Chapter 7

Chapter 7 bankruptcy can help you to make a fresh financial start. You can discharge your debts with no impact on the assets of other people. However, the process could be quite difficult and can take longer if your owe money on student loans or if you need to sell a home.

A credit counseling appointment must be scheduled at minimum six months before filing. A court trustee will help you in liquidating your assets and address any questions you may have from creditors.

Additionally to that, the Bankruptcy Code includes a means test. This means the test is a screening mechanism that measures your income and expenses. The test presumes you are averse to the system when your earnings exceeds the median income for your state.

Chapter 13

Chapter 13 bankruptcy can be the perfect way to reduce your debts. This will make it simpler to pay bills that are due.

If you decide to file for bankruptcy, you must come up with a repayment plan which will be approved by the bankruptcy judge. The plan should outline how much you'll pay your creditors in the course of a three to five years. It is also important to ensure that you earn enough to cover the repayments.

Before filing for bankruptcy, you should look into a credit counseling agency that is not for profit which can offer free advice. They will also assist you to create a payment plan.

Chapter 13 allows debtors to retain certain assets. Certain assets may not be protected.

Automated Stay

The statutory stay, also known as the automatic stay is a legal procedure which protects debtors from certain creditors. The automatic stay means that creditors are not able to foreclose or file lawsuits against debtors if the bankruptcy case is still open.

It is an effective option for those who have a debtor who is harassed, but the benefits can be restricted. The length of an automatic stay is generally determined by the number of filings which were made within a given year.

Some exceptions may apply. There are some exceptions.

A stay of automatic can be granted for a duration of a few weeks as long as the property that is subject to restructuring does not require.

Likewise, a creditor can request relief from the stay for a variety of reasons. These can include re-enforcing or the collection of debtor's payments as well as preserving the value of the asset.

Harrisburg Bankruptcy Lawyer .


Liquidation refers to the sale of assets to enable creditors to receive their money. The nature of the business will determine whether the debtor chooses to liquidate their assets themselves or let a third party do it on behalf. In either scenario a trustee appointed by the court is in charge of the company's assets, and then distributes the proceeds to creditors.

The principal goal of insolvency law is to make sure that creditors get a fair shake. Through the provision of adequate notice to all parties, this will be accomplished. There are two primary kinds of creditors: secured and unsecure. Outright liquidation generally helps secured creditors more than unsecured creditors. Unsecured creditors, however, receive the same benefits.

There are many insolvency laws in effect all over the world. They differ in significant ways.

Social Security Income Protection from Creditors

Someone who receives Social Security benefits can file for bankruptcy and shield their earnings from creditors. There are some exceptions to the rule.

If a lender gets a judgment against you, they could be able to garnish your Social Security payments. It is essential to be aware of the debts that can be taken from your account. This can include past-due child support, delinquent alimony as well as unpaid federal tax obligations.

The Social Security Administration can withhold benefits if you have an order from a judge for unpaid child support or Alimony. In addition, the Department of Treasury can withhold Social Security payments if you have past-due federal tax bills.

Another exception to this rule is the transfer of benefits from one account to another. Banks must protect your money when you transfer them directly into a benefit account. However, if you transfer the money to a creditor's account and then you'll need to put in more efforts to retrieve it back.

You might want to consider employing an Harrisburg bankruptcy lawyer before beginning the bankruptcy procedure. This will ensure that you have the legal counsel and experience you need to handle your case.


Citations and other links

How Bankruptcy Helps People Pay For Debt

There are a variety of reasons why you may file bankruptcy. It is important that you understand your options and make a decision that is best for you. Here are some important tips to be aware of.

Chapter 7

If you have a lot of financial debts, Chapter 7 bankruptcy can be an option. It allows individuals to make a financial turnaround and allows them to get a new beginning. If you're considering filing for bankruptcy, contact an attorney for help.

It is necessary to attend a pre-bankruptcy credit counseling session at a non-profit credit counseling agency before you can file. This will tell you if bankruptcy is the most suitable option.

Additionally, you'll need to be able to meet certain income and asset requirements. In certain states, you may be able to use a state exemption system to protect your property from being sold in order to pay your creditors.

The filing process for bankruptcy generally is between four and six months. But, it could take longer if you have to submit additional documents to the bankruptcy trustee.

Chapter 13

If you're in search of a way to get out of debt, you should consider applying for bankruptcy. Chapter 13 is a court-approved plan which helps you repay your debts in three to five years intervals. It allows you to stop foreclosure and pay off past payments. Furthermore, you'll be able to ensure that your property is not taken away by the lien strippers.

You must submit a specific repayment plan to the court. The plan is scrutinized by an administrator. You will be given numerous opportunities to make modifications to your plan.

You can, for instance, extend the payment timeframe on secured debts, such as a mortgage on your home, to reduce your monthly payments. You can also reduce the principal balance on secured loans.

There are also certain rules to follow when you've received a previous discharged in an Chapter 13 case. It is recommended that you consult an attorney.

Unsecured debt

There are two options if you're in debt to pay it off, or apply for bankruptcy. The filing for bankruptcy can help you eliminate unsecured debt and stop you from accruing more. But you do not have to employ an attorney if you do not want to. You can utilize a free web tool such as Upsolve to start.

Unsecured loans such as credit cards are among the most sought-after type of unsecure debt. They can be a fantastic method of paying off debt once it's due, however they are more risky than secured loans.

Unsecured loans are more expensive in rates of interest over secured loans. Rates are dependent on the credit score of the person who is borrowing. The borrower is able to improve his credit rating by making timely payments to debt.

Certain unsecured debts, like medical bills, cannot be eliminated by filing bankruptcy. Instead, you might be capable of negotiating a reduction in balance or a settlement. A debt settlement specialist is able to contact your creditors on your behalf.

Property exempt from discharged bankruptcy and exempt from taxation

If you decide to file for bankruptcy, you are entitled to the right to exempt certain assets. This can help pay off debts. There are exemptions that vary from state to another. A lawyer is suggested if you are unsure of your rights.

A court-appointed trustee will gather non-exempt property and sell it. These proceeds will be used to pay the creditors.

In addition to paying the creditors The bankruptcy trustee will also supervise the repayment program. A majority of your possessions can be kept. But you may lose other property if you don't comply with the court's order.

Many people who file for bankruptcy are under Chapter 7 because it allows them to discharge the majority of their obligations. While you may keep some of your non-exempt property, the creditors can still get the property.

Credit effects

Although bankruptcy can affect the credit score of yours, it's not an easy fix. It could take a few years for your credit to be restored to a normal level.

Two things can affect your credit score should you file for bankruptcy. First, you will likely see a large decrease in your credit score in the first year. It's a good idea to review your credit report frequently to ensure that it is up to date.

You can also take steps to boost your credit score. You can do this by creating a budget and making big lifestyle changes. You should see a gradual improvement in your credit score when you adhere to these steps.

You can also try secured credit cards. They're like normal credit cards, but require a security deposit upfront. Some of these cards do not have upfront fees.

These are just tips in this article that are based on educated guesses. For accurate facts, consult with experts in the field. In Harrisburg, PA a bankruptcy attorney will be able to guide you on the legalities of bankruptcy. Be sure to understand the law before you sign your name on that signature line.


Are you able to keep your property if you file for bankruptcy?

Can you keep your property if you declare bankruptcy?

Secured debts may stay during bankruptcy

If you are a homeowner with a mortgage or car loan, or another type of secured debt, it is possible to wonder whether you could keep the property if you file for bankruptcy. However, the majority of times, the answer is yes but there are some exceptions. It is crucial to speak with an attorney about your particular situation and the implications of filing.

The first thing to understand regarding secured loans is that it is an asset that has secured by a lien. There is a possibility for a lender to repossess your collateral if you are unable to pay your debts, but they cannot pursue you if you are in a bankruptcy. You are able to keep your property as long as you make regular payments. But, your secured loan cannot be used to repay. In a Chapter 13 bankruptcy, you must reaffirm your debt if you wish to keep your home.

If you are behind in your car or mortgage payment, you'll have to declare the debt as a part of your bankruptcy. This will give you the opportunity to address your financial issues and be back on track with your payment plan. It will allow the creditor to gain access to your property and will result in you losing the property's value.

Secured creditors are created by a security agreement that includes the deed of trust or mortgage, or judgment lien. If you don't pay them they are able to acquire possession of the property and demand attorney's fees and interest. It is imperative to pay the debt again after it's repossessed.

Saving your collateral could save thousands of dollars. You should keep the insurance that you paid to protect your purchase, and keep making payments. You can either negotiate the terms of a new contract with your creditor or transfer your collateral to a different person. Negotiations may be productive, leading to the creditor being able to reduce your debt and extending your period of time to pay, or providing other conditions.

Selling your property is another way to avoid foreclosure. If you are behind on your mortgage payments, certain states permit creditors to seize the equity in your home. Selling your home could be an option to repay your debt in the event of an emergency situation or require the money.

Reaffirming debts in Chapter 7 bankruptcy is another option. A majority of debts are wiped out in a bankruptcy, but certain liens associated with some secured debts won't be. The liens remain on your credit report, and could influence your credit score. Following bankruptcy, it's essential to examine your credit reports.

There are certain debts that are able to be paid off however they remain on your credit record. There is also a statute of limitation that needs time to be removed from your credit report. Most people think they're well-versed in the rules and regulations, only to find that they were wrong. Rules change and are often not well explained. Do your research prior to declaring bankruptcy. Although no one wants to go through this, you should be prepared for the event that you have to.

It can be difficult to understand the bankruptcy process. The automatic stay, which is a legal safeguard to stop creditors from taking any further action against you, is an important idea to remember. The debtor can stop the collection process, but you can choose not to stop them. If the creditor is not satisfied, they might be able to petition the court for the lifting of the stay. 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 are a myriad of instances of fraud in bankruptcy. Some people are caught up in a scenario that they think is going to be helpful but only later discover they're in much more financial trouble than they thought. Before you sign any legal document, make sure you've review the small print.


Things to Learn About Bankruptcy

What You Need to Know About Bankruptcy

The bankruptcy process is that is used when a person an entity cannot pay its debts. It is generally imposed by a court order and is designed to offer relief to debtors, as they're no longer able to pay off the debt. There are a number of things to be aware of when filing for bankruptcy.

Discharge does not eliminate debt

A discharge is an order from a judge stating that the debtor has been relieved of all personal liability for a particular debt. To be eligible for a discharge, there are certain criteria. It is crucial to remember that not all debts can be eliminated by bankruptcy.

Some non-dischargeable debts include student loans and alimony as well as child support and spousal maintenance. All of these debts have to be paid to their creditors.

The bankruptcy process is a legal proceeding which allows debtors to organize and get rid of the burden of debt. Further payments can be ordered by the court and may extend the bankruptcy period.

While bankruptcy is a great way to remove a variety of debts, it is also possible to eliminate a number of exceptions to the law. Some debts cannot be erased automatically, such as student loans, fraud, government-funded debts and spousal support.

Property exempt from bankruptcy

Debtors are permitted to exempt certain assets from Chapter 7 bankruptcy. These items could include clothing, furniture or a laptop computer. Exemptions are based on the value of the item less any liens or mortgages. It is important to keep in mind that this rule can vary according to the state. Colorado is an example of a state that allows a debtor to exempt farm equipment for up to $25,000 when the equipment contributes to the owner’s livelihood.

Non-exempt property could be offered for sale through a bankruptcy trustee to pay creditors. In most cases, this happens at a discounted price. The trustee pays the amount to the owner in case the value of the asset is lower than the exemption value. The amount is usually equal to the value that is estimated of the asset, minus fees of selling the asset.

Liquidation of nonexempt properties following bankruptcy

Liquidation of property that is not exempt from taxation is a standard part of Chapter 7 bankruptcy. The bankruptcy trustee is responsible for collecting and liquidating assets of the debtor. After discharge of debtor's liabilities, the trustee distributes the proceeds from the sale of the debtor's nonexempt property to creditors.

A trustee's decision to liquidate or not liquidate an asset is contingent upon a number of factors. The costs of liquidation and the likelihood that sufficient funds are available will be taken into consideration by the trustee. They must also consider whether it is practical to sell. The asset's value is to be assessed.

In the trustee's decision.

For example, if you own a fancy vehicle that is worth more than the value of your other assets, you might not want to sell it. It might be difficult to find an interested buyer.

Opposition to the discharge of bankruptcy

Your creditors could object to your bankruptcy filings. This is called an adversary proceeding. The party objecting must show the existence of grounds to raise an objection.

There are a variety of reasons to object. Some could be a false or misleading written statement, or misappropriation or misuse of funds under a fiduciary position. A creditor can also file an objection for failure to comply with a court order. For example, if you did not provide your tax documents in accordance with the requirements of the Bankruptcy Registrar, then your LIT may challenge your discharge.

Debtors can respond to an objection by asking the court to reconsider the case. Sometimes the Registrar of Bankruptcies will determine that no further action is needed. However, sometimes the trustee could require additional payments.

An objection to discharge could occur when the debtor has fraudulently transferred title to property. Another cause is failure to report property that was lost in bankruptcy.

The formal proceedings can go on for quite a while

One of the most difficult aspects of filing for bankruptcy is the long term plan of execution. Although it's not uncommon for creditors to put up a fight, a fair amount of patience and perseverance are required to get through the day. The first steps to debt-free living with the help of a credit counselor and/or coach. In the end the best solution is to start over. the most effective solution, regardless of the underlying reason. Avoiding the pitfalls and identifying the issues is essential. There are numerous online resources and a helpline to assist you. If you're in search of an expert in credit counseling, make sure you do your homework and seek advice from professionals if necessary. In Harrisburg, PA a bankruptcy attorney can answer any questions you have and help with the legal procedure.


What is Bankruptcy?

What exactly is Bankruptcy?

When someone is unable to pay off their debts or pay their debts in full, they can apply for bankruptcy relief. Bankruptcy is a legal process which is usually imposed by a court order.

Chapter 7

Chapter 7 is a different chapter to chapter 13. It permits individuals, businesses and non-profit organizations to pay off the majority of their debts if they meet the bankruptcy means test. If you're interested in knowing whether your debt can be discharged then you must seek the advice of a bankruptcy lawyer.

The test for bankruptcy involves determining your income and expenses and if you have enough funds to pay back your debts. In certain cases you could be required to submit the repayment plan with your creditors. This plan could include the repayment of obligations in monthly installments over three to five year.

Your trustee might also try to take your property. It is possible to keep certain assets based on the circumstances. You may be able to take advantage of the federal exclusion system in certain states to safeguard certain properties.

The Legal Services Corporation offers free legal advice for bankruptcy. There are bankruptcy counseling services also available. A credit counselor can help determine if you're qualified to file for bankruptcy, and also help you plan your payments. It is recommended to consult a professional. In Harrisburg the bankruptcy lawyer can assist you navigate the legal aspects of declaring bankruptcy.

According to the Bankruptcy Code, you must file a certificate proving your financial responsibility to the bankruptcy court. The certificate must prove that you've completed a program in financial management. It is also possible to provide an income and loss statement. This will permit your attorney to decide if you are allowed to keep your property.

Chapter 7 doesn't allow for the discharge of certain obligations. This includes child support and Alimony, and loans guaranteed by a governmental unit.

Chapter 7 bankruptcy is a typical type of bankruptcy however there are some drawbacks. It could be a means to make a fresh start but it won't resolve all of your financial issues. Chapter 7 cannot discharge some debts such as tax debts and student loans.

Chapter 13

The process of filing a Chapter 13 bankruptcy generally requires that the debtor create the creditors a plan to pay over three to five years. The plan is endorsed by a bankruptcy judge, and a judge can amend the plan as needed. The repayment plan is usually determined by the debtor's monthly income.

The debtor who is unable to make payments is likely to be barred from Chapter 13 relief. They may have to change to Chapter 7 bankruptcy. During a Chapter 13 case, the debtor cannot apply for an individual or business loan. The debtor could have to pay certain tax back.

The debtor must supply the Trustee with an income statement and proof of their financial management. They are also required to submit copies of any federal tax returns.

The Trustee is required to send creditors a statement detailing the amount of money that the debtor has to pay. The report will also note the balance due on the plan. The Trustee may oppose claims that are late. When the plan is approved by the court, the claims will be dismissed.

The first payment must be paid within 30 days from filing the bankruptcy. The debtor is also required to provide the Trustee with an attorney's copy of a receipt for payment. The debtor may be able modify the terms of the agreement.

If a debtor is late with an installment and the Trustee is not able to make a payment, they will send them a notification. The notice acts as an official "stop sign" for the creditor of the debtor. The notice makes it illegal for the debt collectors to attempt to collect on the debt.

If a debtor is late on many payments, they could not be able to pay future payments. If a debtor is unable to make the payments, the creditor may ask the court to permit them to collect the debt. The court may also authorize the creditor to take possession of the vehicle.

An attorney should be contacted immediately in the event that a debtor fails to make the amount due. They might be able change the repayment plan to cover the non-payments. A bankruptcy judge might be able convert the case to Chapter 7.

Chapter 13 bankruptcy is designed for individuals who are unable to pay their obligations. It is a way to protect co-signers and stop foreclosures and repossessions. It is a great tool to aid debtors in getting back on track and avoid future problems.

The reasons why people file for bankruptcy

Causes for Consumers to Apply for bankruptcy

Many factors contribute to individuals who declare bankruptcy. These include poor personal finance decisions, medical debts, and mortgages on homes. Many consumers file for bankruptcy repeatedly which puts lots of stress on their financial position.

Being in debt for medical expenses is a huge issue for millions of Americans. Unexpected medical bills can quickly escalate into a financial disaster. Patients with less than perfect health tend to have higher chances of accumulating medical expenses.

The United States spends a lot of dollars on health healthcare. It is the largest spender per capita than any other country in the world. However, there are tens of millions of uninsured and uninsured citizens, which makes them susceptible to costly medical bills.

Many Americans live from pay to pay. In fact, a recent study showed that nearly one in five households could pay for medical expenses. Congress adopted legislation to cut the initial cost of healthcare.

The Affordable Care Act capped out-of-pocket expenditure. This has decreased the burden of medical debt for a few Americans However, others struggle to pay for their medical expenses.

In addition medical debt collectors are becoming more aggressive. They can sue you, or pursue legal action against you.

Often, medical debt collectors will tack on extra fees to interest-free debt. It is also possible to see unpaid medical bills added to your credit score. Unpaid medical bills could remain on your credit report for up to seven years.

The best approach to deal with medical debt is to avoid it. If you find yourself in a situation wherein you are unable to pay the bills, you might have to file for bankruptcy.

Medical debt is one of the most common reasons people are forced to file bankruptcy. The Consumer Bankruptcy Project estimates that around half of all bankruptcy debtors pay medical bills in their bankruptcy.

A home mortgage is a major financial investment. Regardless of whether you're buying an apartment on your own or with a spouse, you'll want to be sure you're aware of all the costs involved. It's not a good idea to have an unpaid mortgage.

The most important thing to think about before you take out a mortgage is which type of mortgage is the best for you. There are many options. You can

There are a variety of options to choose from a conventional loan that has either a fixed or adjustable interest rate, a VA loan or an FHA loan. The loan may be short-term or long-term.

The best method to determine the type of mortgage that will best suit you is to collect all the pertinent details. This includes the terms and conditions of the loan. It also helps to have a local bankruptcy lawyer in the mix to make sure you know all of your options. A Harrisburg lawyer will meet with you to answer your questions.

There are other factors to take into consideration, such as whether or not you're eligible for loans. If you're a service member and have a valid military ID, you might be eligible for the VA loan. A USDA loan is available for rural residents. Make sure you look into the top mortgages.

The process of getting a mortgage after bankruptcy isn't easy however, it's not impossible. As long as you're ready to work hard, you should be able to find a lender to cooperate with you. First, you will need to have excellent credit. This means you'll want to get a preapproval. And the best way to accomplish this is to obtain the lowest rate.

A bankruptcy filing will help stop the garnishment of wages. In fact, you could even recover back wages garnished within 90 days after filing.

Different types of debt are subject to different laws on wage garnishment. Alimony and child support can be garnished at higher rates than taxes. The amount of wages garnished cannot exceed 25% of an individual's disposable income.

There are also state-specific laws regarding how much may be garnished. Some states have exemptions for medical assistance or government assistance. Additionally, there are restrictions on the amount that can be garnished from personal property.

A majority of states allow people to request an order from the court to stop wage garnishment. To apply for an exemption, you have to provide proof that you have exempt income. For instance, you can apply for the benefits of your Social Security benefits to be exempt.

There are many other options to stop garnishing your wages. You can use credit counseling services to help find an arrangement for payment. Although credit counseling services may charge a fee, it may also be able to help to lower the amount that you have to pay.

Bankruptcy and Collections - Do You Need to Pay the debt after bankruptcy?

Bankruptcy and Collections Do you have to pay back your debts following bankruptcy?

If you're in bankruptcy or not you are, there are a few things you need to know about debt collection. This includes how to find an individual who can collect your debt and how you can have your debts paid.

Discharged debts

Your situation will determine if your debts are removed following bankruptcy. You need to be able to pay your debts. To pay your creditors, you might have to sell your house or car. Your debts and assets will be scrutinized by a bankruptcy trustee who will decide if the debts are able to be discharged.

There are a variety of reasons why a court will refuse to let a debt be discharged. One of the most frequent reasons is that the debtor is hiding assets. The creditor can be able to prove that the debtor is carrying hidden assets.

Since the debtor was unable to declare all their assets and assets, the bankruptcy court did not release the debt. However, the court embraced the position taken by the debtor, and said that the funds were not sufficient to cover the debts.

The Town took action against the Debtor in both the form of a District Court Action and a Compulsory Counterclaim. They also attempted to seize municipal liens. The Town also attempted to collect discharged debts through SS 524.

Collection efforts

In the course of bankruptcy, you may receive phone calls from creditors. This should be stopped by the law. State and federal laws protect you. You could be able to make a claim against creditors in the event that you have been harassed.

Fair Debt Collection Practices Act, (FDCPA), outlines the legal obligations debt collectors must meet to ensure that they are in compliance with law. Additionally the court could punish a debt collector if they break the law. A collector who is found violating the law could face penalties or even be required to pay attorney fees.

The Fair Credit Reporting Act (FCRA) guarantees that creditors report exact information. This is crucial, as inaccurate information can harm your credit. To ensure accurate information regarding your debt, always review your credit report.

Also, you are protected from collection attempts with an automatic stay. It is a court-issued order that stops creditors from taking over your debt.

Discrimination between government units and private


No matter if you're a private or governmental employer the laws of the land prohibit the making of any decision based on a bankruptcy filing. The bankruptcy filings cannot be excluded from any loan program run by the government. They can be considered in assessing a job candidate's creditworthiness.

It is important to learn about the law and its dangers to avoid discrimination. It is also possible to have a lawyer assist you in the case. An Harrisburg bankruptcy attorney can help you understand your rights. This is particularly important if you are an employer that operates in several jurisdictions. The third circuit was considerate enough to take a stand on an important and timely matter for private sector employers.

The Third Circuit ruled that the Bankruptcy Act’s most well-known acronym was not a viable option. In other words, you can't take bankruptcy deductions from your tax returns as well as you can't exempt bankruptcy filers form the government's loan programs, and you cannot deny bankruptcy filers government benefits. Good news: If you're not able to declare bankruptcy, you cannot take on any private or governmental employers for discrimination.

Identifying the debt collector

It is often difficult to identify the debt collectors in bankruptcy. Scammers often claim to be debt collection agencies for creditors, and are looking to make a quick payment. They may use a variety of techniques to get you to pay the amount owed.

You may need legal advice if you find yourself in such a situation. If a creditor is found to be in violation of the law, he/she could be legally liable for damages. A court proceeding may be necessary to reopen bankruptcy procedures. This court process could need you to employ a lawyer.

If you are unsure whether your debt is cleared, consult your bankruptcy lawyer. This can help you get the right decision for your future. You may be able to negotiate a lower settlement with the debt collector.

The bankruptcy discharge decree prevents creditors from seeking to collect on any dischargeable debt. The court will also issue an injunction to prevent creditors from contacting or seeking to collect on debts discharged. This will stop the garnishment of wages, car repossessions and wage garnishments and foreclosure.