What are the advantages of declaring bankruptcy?

Harrisburg, PA Bankruptcy Attorney

What are the advantages of Declaring Bankruptcy?

There are numerous reasons to file for bankruptcy. One of them is to protect your Social Security benefits. The other is to gain new beginnings. Most people file bankruptcy because they can't keep up with their finances.

Chapter 7

Chapter 7 bankruptcy can help you to make a fresh financial foundation. It allows you to discharge your debts without affecting the assets of others. It can be a difficult process and may take longer in the case of student loans or you need to sell your property.

You'll need to be prepared for a consultation at least 6 months prior filing. A court trustee will help you liquidate your assets and respond to any questions that creditors may have.

Additionally to that, the Bankruptcy Code includes a means test. The test is a way to measure your earnings and expenses. The test presumes you are abusing the system if your income is higher than the median income of your state.

Chapter 13

A Chapter 13 bankruptcy is an effective method of restructuring debts. It can also make paying past-due bills more affordable.

When you file for a bankruptcy, you have to prepare a repayment plan that will be approved by the bankruptcy judge. This plan lays out the amount you'll have to pay back to your creditors over a period of three to five years. Additionally, you must make sure that you have enough money to pay the payments.

If you are considering filing for bankruptcy it is recommended to look into a nonprofit credit counseling agency that can provide you with free assistance. They will also assist you to make a payment plan.

Chapter 13 allows debtors to retain certain assets. But, not all kinds of assets are covered.

Automatic stay

The statute of limitations, also known as an automatic stay is an legal procedure that protects debtors against certain creditors. This means that a creditor is not able to file a lawsuit or foreclose on a debtor's property in bankruptcy cases that are in the process of being filed.

It is an effective tool for a harassed debtor however, the benefits may be restricted. The duration of an automatic stay is usually determined by the number of filings that occurred within a specific year.

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

automatic stay for up to a couple of months, as long as the property does not require an effective reorganization.

A creditor may also request relief from the stay of execution for a variety of reasons. These can include re-enforcing or paying debtors as well as preserving the asset's value.


Liquidation refers to the sale of assets in order to allow creditors to be paid. In the case of the company the debtor can choose to liquidate its own assets or let an uninvolved third party perform the process on behalf of him or her. A court appointed trustee is appointed to manage the assets belonging to the company and then distribute the profits to creditors.

Insolvency laws are intended to make sure that creditors are treated fairly. In the event of a timely notice to all parties, this will be achieved. There are two main groups of creditors, secured and secured. In general, outright liquidation favors secured creditors better than creditors who are unsecured. However, non-secured creditors can also benefit.

There are a variety of laws governing insolvency around the globe. They differ in several crucial aspects.

Social Security Income Protection from Creditors

Someone who gets Social Security benefits may file for bankruptcy to shield their income from creditors. There are however exceptions to this policy.

If a creditor wins an order against you, they could garnish your Social Security payments. It is important to understand what debts can be taken from your funds. This includes child support that is past due, delinquent Alimony, and tax debts that are not paid by the federal government.

If you're a victim of a judgment from a court in relation to child support unpaid, or alimony, the Social Security Administration may withhold the benefits you receive. Additionally the Department of Treasury can withhold Social Security payments if you have past-due federal tax bills.

The transfer of the benefits of one account to another is a deviation from this rule. If you directly deposit funds into a benefit account banks must protect the funds. If the money goes to a creditor's bank account, it'll take more effort to recover it back.

You might want to consider hiring an Harrisburg bankruptcy attorney Before beginning the bankruptcy process. This will ensure that you have the proper 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 the debt

There are a number of various reasons to choose to file bankruptcy. It is important to know the various options available so that you can make the best choice for yourself. Here are some of the key factors to consider.

Chapter 7

Chapter 7 bankruptcy is an excellent option for those who have severe debt. It allows individuals to get their finances back on track and gives them a fresh start. If you're thinking of filing for bankruptcy, contact an attorney to get help.

Before filing for bankruptcy, you'll need to undergo an initial credit counseling session in a non-profit credit counseling service. This will allow you to determine if bankruptcy is the best alternative.

Additionally, you'll need to meet certain asset and income requirements. You may be able to take advantage of the exemptions provided by state laws in certain states to protect your property from being sold in order to pay your creditors.

The process of filing bankruptcy typically 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 an option to get rid of debt, consider applying for bankruptcy. Chapter 13 is a legal plan that helps you pay off debts over a period of three or five years. You'll be able to stop foreclosure proceedings and make up the missed payments. Additionally, you can ensure that your property is not repossessed by lien strippers.

A repayment plan that is specific to you must be submitted to the court. The plan is then examined by the trustee. There will be several possibilities to alter your repayment plan.

In order to reduce the monthly amount you pay you can prolong the period of payment on secured debts like mortgages. It is also possible to reduce the principal balance of a secured loan.

There are certain rules to follow in the event of a prior discharge in a Chapter 13 case. It is recommended to speak with an attorney.

Unsecured debt

If you're struggling with debt, you have two choices: either paying it off or declaring bankruptcy. Filing for bankruptcy will help you eliminate unsecured debt and prevent you from accruing more. There is no need to engage a lawyer to file for bankruptcy. To begin using this tool, you can try Upsolve, a free online tool.

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

Unsecured loans are more expensive in rates of interest over secured loans. The rate is determined by the credit score of the borrower. However, the borrower is able to enhance their credit rating by making regular debt payments.

Certain unsecure debts, such as medical expenses, aren't discharged through bankruptcy. It may be possible to bargain a reduction of your debt, or even a settlement. A debt settlement expert is able to contact your creditors on your behalf.

Property exempt from bankruptcy and discharge

You can exclude certain properties from bankruptcy proceedings. This will help you pay debts. Exemptions may vary from state to state. A lawyer is suggested if you are unsure of your rights.

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

The bankruptcy trustee will monitor the repayment plan and make payments to creditors. You are able to keep the majority of your possessions. But you may lose other properties if you violate the court's order.

Chapter 7 bankruptcy is the most sought-after because it permits people to get rid of the majority of debts. While you may keep some of your property that isn't exempt however, creditors will still be able to get it.

Credit effects

While bankruptcy may affect your credit score, it's not a quick fix. It could take several years for your credit to return to a healthy level.

Two factors can impact your credit score should you declare bankruptcy. The first is that you'll likely notice the loss of your credit score within the first year. To ensure that your score is accurate you should have an excellent idea to review your credit report.

Second, you can make steps to improve your credit. This is done by making major lifestyle changes and establishing your own budget. If you follow the steps correctly, you should be able to see gradual improvements in your credit score.

You can also try secured credit cards. They're similar to normal credit cards, but need a deposit of security upfront. Some of these cards come with no upfront charges.

These are only suggestions in this post based on an educated guess. Professionals in the field can offer exact advice. In Harrisburg, PA a bankruptcy attorney can guide you through the legalities of bankruptcy. Before you make that decision, ensure you understand the legal terms.


Can You Remain in Your Home In the event of declaring bankruptcy?

Can You Keep Your Property In the event of declaring bankruptcy?

In bankruptcy, secured debts may be kept

If you have a home mortgage or car loan, or another type of secured debt, you may wonder whether you could keep the property if you file for bankruptcy. Although the general answer is yes but there are some exceptions to the general rule. It is crucial to speak with an attorney about your specific situation and implications of filing.

The most important thing to remember about secured loans is that it is an asset that has a lien on the debt. If you fail to make your payments, a creditor can take possession of your collateral. However, they cannot claim bankruptcy against you. You are able to keep your property as long as you make regular payments. But, your secured loan cannot be used to repay. If you wish to retain your property, you will be required to reaffirm the loan in Chapter 13.

If you're behind in your car or mortgage payments, you will need to declare the debt as a part of your bankruptcy. This will allow you to have the opportunity to address your financial troubles and return to your repayment schedule. However, it can allow the creditor to repossess your property, which will result in the loss of value of the property.

Secured creditors are based on a security arrangement that includes trust or deed mortgage, judgment lien. They are able to take your property if not pay the debt, and they can collect interest and attorneys' fees from your property. When the debt is repossessing it is necessary to confirm your payment or the debt won't be discharged.

You can save hundreds of dollars by retaining your collateral. However, you must retain the insurance you purchased to protect your purchase, and you must continue to make your payments. Either negotiate the terms of a new contract, or transfer your collateral. Negotiations are possible and can result in your creditor reducing or lengthening the time it takes to make payments, or offering different conditions.

Selling your home is another option to avoid foreclosure. Some states allow creditors to acquire the equity in your property, if you're in default in your mortgage. If you're facing an emergency situation and require money, selling your property could help you pay off your credit card.

Another option is to confirm the debt during a Chapter 7 bankruptcy. A majority of debts are wiped out by bankruptcy, however certain liens associated with some secured debts won't be. These liens will remain on your credit report and affect your credit score. After filing bankruptcy, it's important to check your credit reports.

There are some debts that can be cleared however they remain on your credit record. You will also need to adhere to a specific timeframe in order to get your debts removed from credit reports. Many people believe they are aware of the rules and regulations, but then realize they're not. Rules change and sometimes are not explained very well. The best thing to do is to do your homework before declaring bankruptcy. Although nobody would like to go through the process however, you should be ready should you be forced to.

The bankruptcy process can be difficult to understand. A key point to be aware of is that an automatic stay is legal precaution to stop the debtor from taking any other actions against you. The creditor has the power to end any collection actions and if you don't the creditor could be entitled to request 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 are numerous instances of fraud in bankruptcy. Sometimes people are manipulated to believe they're being assisted by a bankruptcy lawyer however, they are in deeper financial trouble than they thought. Always read through any legal document and fully comprehend the implications of what you're making a decision to sign before signing any legal document.


Things to know about bankruptcy

Things to Learn About Bankruptcy

Bankruptcy is a legal process which is utilized when a person or an organization is unable to pay its dues. It is generally imposed by an order of the court and is designed to offer relief to those who are in debt, since they are no longer able to pay off the debt. When filing for bankruptcy, there are many things you should be aware of.

Discharge does not eliminate debt

A discharge in bankruptcy is an order by a court that states that the debtor no longer has personal responsibility for a specific debt. In order to be eligible for a discharge, there are certain criteria. It is crucial to remember that not all debts can be eliminated by bankruptcy.

Certain non-dischargeable debts are student loans and alimony as well as child support and spousal maintenance. These obligations must be paid back to the lender.

A bankruptcy is a legal process that allows debtors to consolidate and remove the burden of debt. The court may also require additional repayments and could extend the bankruptcy period.

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

Bankruptcy exempts property

In the case of a Chapter 7 Bankruptcy, debtors can be exempt from certain items of property. These items could include clothing, furniture or a laptop computer. Exemptions are based on the worth of the item less any liens or mortgages. This rule may vary between states to the next. For example in Colorado the debtor is allowed to exempt farm equipment from taxation for up to $25,000 provided that it is a source of livelihood.

A bankruptcy trustee may also sell non-exempt properties to pay debtors. It is usually done at a discount. The trustee will pay the extra amount to the owner if the value of the asset is less than the exemption value. The amount paid is typically the same as the value estimated for the asset, minus charges of selling the asset.

Liquidation of property that is not exempt after bankruptcy

Chapter 7 bankruptcy often includes the liquidation of property that is not exempt. The bankruptcy trustee is responsible to collect and liquidate the assets of the debtor. Following the discharge of the debtor's obligations the trustee distributes the proceeds of the sale of nonexempt property belonging to the debtor to creditors.

The trustee has to consider a variety of aspects before deciding to liquidate an asset or not. The trustee has to be aware of the costs of liquidation and the possibility of having sufficient funds available. They must also consider whether the asset is practical to sell. In the end, the worth of the asset should weigh

in on the on the trustee's decision.

If, for instance, you own a luxury automobile that is worth more than the value of your other assets, you might not be able to sell it. It may be difficult to find someone to purchase your car.

Opposition to bankruptcy discharge

Your creditor might oppose the bankruptcy filings. This is known as an adversary proceeding. This is referred to as an adversary proceeding.

There are a variety of reasons to object. Some are a materially incorrect written statement, or misappropriation or misuse of funds under a fiduciary position. A creditor may also file an objection due to failure to comply with a court order. For example, if you didn't submit your tax documentation in the manner required by the Bankruptcy Register, your LIT might challenge the discharge.

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

An objection to discharge can also arise in the event that the debtor has knowingly transferred title to property. Another common reason is a failure to account for the assets that were lost in bankruptcy.

The formal proceedings can go on for quite a while

One of the most daunting aspects of a bankruptcy is the long term plan of action. While it's not unusual for creditors to put up a fight, a fair amount of patience and perseverance are required to get through the day. With the help of a debt counselor or credit coach to take the first steps toward an uninvolved future. Whatever the reason, a fresh start is the most effective option. Avoiding the pitfalls and identifying the issues is essential. There are many online resources and a help line that will assist you. If you're in the market for a credit counselor make sure you do the research before you go into the dark side.Seek professional advice from experts when you require. An Harrisburg bankruptcy attorney can be reached to address any questions you might have and help you through the legal procedure.


What is Bankruptcy?

What is Bankruptcy?

Generally, when someone can't pay back their debts and is unable to pay them, they can seek relief from debts by filing for bankruptcy. Bankruptcy can be an official proceeding often imposed by the court in a ruling.

Chapter 7

Chapter 7 is a different chapter to chapter 13. It allows individuals, businesses and non-profit organisations to clear all of their debts, provided they pass the bankruptcy test. A bankruptcy attorney will help you determine the possibility of having your debt eliminated.

The bankruptcy means test involves determining your income and expenses, and whether you have enough funds to repay your debts. You may need to sign a repayment agreement with your creditors in certain circumstances. The repayment plan could involve the repayment of obligations in monthly installments over three to five year.

Along with the payment of your debts, your trustee may also attempt to recover some of your possessions. You might be able to keep certain assets based on your circumstances. In some states, you might be able to use the federal exemption system to secure some of your property.

The Legal Services Corporation offers free legal advice in bankruptcy. There are bankruptcy counseling services also available. Credit counselors can help determine whether you're eligible to file bankruptcy and help you plan your payments. It is recommended to consult a professional. An Harrisburg bankruptcy attorney will assist you in the legalities of declaring bankruptcy.

The Bankruptcy Code requires that you file a certificate of financial responsibility to the bankruptcy court. The certificate must prove that you've completed a program in financial management. You may also have to provide the profit and loss report. This will allow your attorney to decide if you are allowed to retain your home.

Chapter 7 doesn't permit the discharge of certain debts. These include child support , Alimony, and loans backed by a governmental unit.

Chapter 7 bankruptcy is a popular form of bankruptcy. But there are a few drawbacks. While it may give you a fresh start but it's not a fast answer to financial woes. Chapter 7 cannot discharge some financial obligations, such as tax debts and student loans.

Chapter 13

In general the process of filing generally, Chapter 13 bankruptcy requires the debtor to propose a plan to pay creditors over a three to five-year time. A bankruptcy judge approves the plan, and can alter it if necessary. In most cases, the amount of the debtor's income per month is utilized to decide the repayment plan.

The creditor who fails to pay payments could be denied Chapter 13 relief. They might have convert into Chapter 7 bankruptcy. The debtor isn't able to make personal or business loans during a Chapter 13 bankruptcy case. You may have to pay certain taxes.

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

Once the plan is completed and the Trustee has completed it, he will send an update to creditors, stating the amount the debtor has given them. In addition, the report will mention the balance due on the plan. The Trustee may also object to late claims. The court will accept the plan and the claims will be dismissed.

The first payment has to be made within 30 days after filing the bankruptcy. The debtor must also give the Trustee a copy from their attorney of a receipt for payment. The debtor could also be able to amend the terms of the agreement.

If a debtor is late with a payment and the Trustee is not able to make a payment, they will send them a notification. This notice is like a legal "stop sign" for the debtor's creditors. It is unlawful for debt collectors or creditors to seek to collect on the debt.

A debtor who misses several payments could be ineligible for future payments. The creditor may seek permission from the court to take over the debt if the debtor is not able to pay. The court may also authorize the creditor to take possession of the vehicle.

If a debtor fails to make the payment, they must get in touch with an attorney right away. They may be able to modify the repayment plan to make up the missing payments. It could also be possible for a bankruptcy judge to permit them to change their case into Chapter 7.

Chapter 13 bankruptcy is designed to help those who aren't able to pay their dues. It is a way to protect co-signers and prevent repossessions and foreclosures. In the end, it will aid a debtor to get back on track and prevent future debt from becoming an issue.


Harrisburg, PA Bankruptcy Lawyer

Reasons Why Consumers Filing for bankruptcy

The reasons why people file for bankruptcy

Consumers who declare bankruptcy often due to a variety of reasons. These include poor personal finance decisions, medical debts, and mortgages for homes. A lot of people are required to file multiple times this can result in lots of stress for their financial situation.

Being in debt for medical expenses is a major problem for millions of Americans. Unexpected medical bills can quickly escalate into a financial disaster. Patients with less than perfect health are more likely to accumulate medical bills.

The United States spends large amounts of money on health medical care. The United States invests more per capita on health care than any other country. Yet, tens of millions of people are uninsured or underinsured, putting them at risk of paying huge medical bills.

A lot of Americans are living from pay to pay. Recent research revealed that almost one fifth of households in America are unable to afford essential medical expenses. Congress passed legislation to reduce the initial cost of healthcare.

The Affordable Care Act has limited the amount of money you can spend out of pocket. This has decreased the cost of medical debt for a few Americans, but others still have a difficult time paying for their medical expenses.

In addition, medical debt collectors have become increasingly aggressive. They can pursue legal actions against you or even place the lien on your property estate.

In many cases, medical debt collectors will tack on extra fees on interest-free debt. It is also possible to see medical bills that are not paid in your credit report. Unpaid medical bills could remain on your credit report for seven year.

The best way to deal with medical debt is to avoid it. However, if you are in a situation where you cannot pay the bills, you may require filing for bankruptcy.

One of the most common reasons people file for bankruptcy is due to medical debt. According to the Consumer Bankruptcy Project, about half of bankruptcy debtors point to medical expenses as a contributor to the bankruptcy.

A mortgage for a home is a major financial investment. Whatever the case, whether you're purchasing a house for either you or with a partner, you will need to know all the costs. You don't want to be left with the burden of a mortgage that you cannot pay.

When you are applying for a mortgage the first thing you need to ask is which kind of mortgage is right for you. There are a variety of choices available. There are many options available to you.

You can choose a traditional loan that has either a fixed or variable interest rate, you can choose a VA loan, or an FHA loan. A loan could be short or long-term.

Gathering all relevant information is the best way to choose which kind of mortgage to take. This includes the conditions and terms of your loan. An experienced bankruptcy attorney in the area can help you to understand your options. A Harrisburg lawyer is available to answer any questions you may have.

You should also consider whether you're eligible to receive an loan. The VA loan may be available to military personnel. If you live in rural areas, you may be able to be eligible for an USDA loan. Make sure you find the most suitable mortgage.

Although it's not easy to get a mortgage after bankruptcy, it is possible. If you're prepared to do the work and work hard, you'll be able to find a lender willing to collaborate with you. First, you will need to have excellent credit. It is necessary to apply for preapproval. And the best way to do this is to obtain the best rate.

The use of bankruptcy to stop garnishing wages could be an effective way to pay off the burden of. In fact, you can even recover back wages garnished within 90 days after filing.

The laws regarding wage garnishment differ for different types of debt. For instance, alimony or child support are able to be garnished much more than taxes. The amount of the wages garnished must not exceed 25 percent of an individual's income.

You can garnish however much you want in accordance with the state. There are exemptions in some states for medical or government aid. There are also restrictions in the quantity of personal property which can be garnished.

Most states allow an individual to request a court order to stop wage garnishment. In order to request an exemption, you need to show proof that you earn exempted income. For instance, you could you can claim the benefits of your Social Security benefits to be exempt.

There are a variety of other ways to stop wage garnishment. You can use credit counseling services to assist you to negotiate an arrangement for payment. A credit counseling service might charge an amount for its services. However, it might also help reduce the amount you must pay.

Collections and Bankruptcy Do you have to repay debt following bankruptcy?

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

Whether you are in bankruptcy or not but there are some things you need to know about debt collection. This includes the steps to locate a debt collector and how to obtain your debts discharged.

Discharged debts

Whether your debts are dissolved following bankruptcy depends on the circumstances. The debts you have must be able to be settled. To pay your creditors, you might require the sale of your house or car. Your assets and debts are reviewed by the bankruptcy trustee, who will determine if your debts are able to be discharged.

A court may refuse to discharge a creditor's debt for many reasons. The most common reason is that the debtor is hiding assets. In this instance the creditor is able to demonstrate that the debtor has lied on their loan application.

The bankruptcy court did not discharge the debt because the debtor was not able to disclose all their assets. However, the court embraced the position of the debtor declaring that there were not enough funds to pay the charges.

The Town filed an action against the Debtor in both an Action in District Court as well as an Compulsory Counterclaim. The Town also attempted to foreclose municipal liens. The Town also sought to collect debts discharged through SS 524.

Collection efforts

You might receive calls from creditors during bankruptcy procedures. This should be stopped by the law. State and federal laws protect you. You may be able to make a claim against creditors if you are harassed.

Fair Debt Collection Practices Act, (FDCPA), outlines the legal requirements debt collectors must adhere to in order to ensure that they are in compliance with law. A judge can also impose sanctions on collectors of debt who violate the law. Anyone who is found to be violating the law could face fines or even be ordered to pay attorney fees.

The Fair Credit Reporting Act (FCRA) ensures that creditors provide exact details. This is vital, because inaccurate accounts can damage your credit. Always check your credit report to make sure you have the correct information about your financial obligations.

You also are protected from attempts to collect your debts with an automatic stay. This is a court order which will stop creditors trying to collect your credit card.

Discrimination by governmental units and private


Whether or not you are a private or governmental employer, the law prohibits you from making any decision based on a bankruptcy filing. In addition, you cannot exclude bankruptcy filers from any government loan programs. You can still consider them in assessing an applicant's creditworthiness.

The best way to avoid discrimination like this is to learn about the law and the legal pitfalls. You might also have an attorney to help you with your case. In Harrisburg, PA, a bankruptcy lawyer can assist you in determining what your rights are. This is particularly true if your business operates in multiple jurisdictions. The third circuit was considerate enough to address a timely and relevant issue for private sector employers.

Particularly, specifically, the Third Circuit found the Bankruptcy Act's most famous acronym to be a non-starter. In other words, you can't deduct bankruptcy from your taxes, you can't exclude bankruptcy filers from government loan programs, and you can't stop bankruptcy filers from receiving government benefits. The good news is that if you're unable to declare bankruptcy then you can't sue any private or governmental employers for discrimination.

Identifying the identity of a debt collector

Finding a debt collector following bankruptcy can be a challenge. Scammers typically claim to be debt collectors for creditors, and are looking for quick cash. To get you to pay the amount owed, they may employ a variety of methods.

If you are in this situation If you find yourself in this situation, it is advisable to get legal advice. If a lender violates the law, he or could be legally liable for damages. You could also be required to revisit your bankruptcy case and request an adversary proceeding. This is a court process that could need you to engage an attorney.

If you're unsure if your debt has been cleared, consult your bankruptcy lawyer. This will help you make an opportunity to start over. It is possible to bargain a lower settlement with your debt collector.

A bankruptcy discharge order prevents creditors from pursuing any debt that is dischargeable. A judge can also issue an injunction which stops creditors from harassing and collecting on the discharged debt. This could stop garnishments on wages or repossession of cars, as well as foreclosure.