What are the benefits of Declaring Bankruptcy?

Bankruptcy Attorney Harrisburg, PA

What are the advantages of declaring bankruptcy?

There are many reasons why you might make bankruptcy an option. One reason is to preserve your Social Security benefits. Another is to make a fresh start. The majority of people declare bankruptcy due to the fact that they are unable to maintain their financial obligations.

Chapter 7

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

It is essential for a consultation at least 6 months prior filing. A court trustee will help you liquidate assets and address questions from creditors.

Furthermore, the Bankruptcy Code includes a means test. This means the test is a screening mechanism that measures your income and expenses. The test presumptively assumes that you are abusing the system when your earnings is higher than the median income of your state.

Chapter 13

A Chapter 13 bankruptcy is an efficient way to reduce debt. It also makes the payment of past due bills more affordable.

You should prepare a repayment plan before you file for bankruptcy. This plan lays out the amount you'll have to be able to repay to your creditors over a period of three to five years. It is also important to ensure that you have enough money to keep up with the installments.

You should think about contacting a non-profit credit counseling agency before filing bankruptcy. They can offer free advice. They can also help create the right payment plan.

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

Automatically pause

The statute of limitations, also known as the automatic stay is an legal process that shields debtors from certain creditors. It means that creditors is not able to file a lawsuit or foreclose on a debtor's property while the bankruptcy case is in the process of being filed.

Although this is an effective tool for harassed debtors but the benefits could be limited. Typically, the length of an automatic stay will be contingent on the number of filings made in the course of a year.

A few exceptions might apply. For instance, the court can grant relief from an

An automatic stay is granted for a time of just a few months, as long as the property that is subject to restructuring does not require.

Likewise, a creditor can ask for relief from the stay for any number of reasons. These include re-enforcing a lien, obtaining payment from a debtor, or preserving the value of an asset.


Liquidation is a process in where assets are sold to pay creditors. The character of the business will decide if the debtor opts to liquidate assets or have another party take over the task on behalf of the debtor. In either case a trustee appointed by a court takes charge of the business's assets and distributes the results to creditors.

The main objective of the insolvency law is to ensure that creditors get fair treatment. By giving adequate notice to everyone involved, this goal can be accomplished. There are two types of creditors: secured and unsecure. Secured creditors are usually the primary beneficiaries of liquidation. However, unsecured creditors also benefit.

There are a number of Insolvency laws in place around the world. They differ in a few crucial aspects.

Social Security Income Protection from Creditors

Someone who gets Social Security benefits may file for bankruptcy in order to protect their earnings from creditors. There are exceptions to the rule.

Creditors can garnish your Social Security payments if they get a judgment against someone. It is important to understand the debts that can be taken out of your savings. This includes past-due child support or delinquent Alimony payments, as well as tax debts that are not paid by the federal government.

The Social Security Administration can withhold benefits if you have an order from a judge for unpaid child support or Alimony. The Department of Treasury may also take away Social Security payments for past-due federal taxes.

Another exception to this rule is when you transfer funds from one account to the other. Banks must protect the funds you deposit them directly into an account for benefits. If you transfer the funds to a creditor's account and then you'll need to put in more efforts to retrieve it back.

You might want to consider hiring an Harrisburg bankruptcy lawyer Before you start the bankruptcy process. This will help you ensure you have the legal support and understanding that you require to manage your case.


Bankruptcy Lawyer in Harrisburg, PA

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How bankruptcy helps people pay off their obligations

There are many different reasons why you may opt to file for bankruptcy. It is important that you be aware of your options and come to a decision that is best for you. Below are a few of the main factors to consider.

Chapter 7

For those who have significant financial debts, Chapter 7 bankruptcy can be an option. It helps people to start with a fresh financial start, giving them a fresh start. Contact us for assistance if you're contemplating bankruptcy filings

Before filing for bankruptcy, you'll need to go through a credit counseling session prior to filing in a non-profit credit counseling agency. This will help you decide if bankruptcy filing is your best choice.

In addition, you'll have to be able to meet certain income and asset requirements. In some states, it is possible to utilize a state exemption system to protect your properties from being sold in order to pay your creditors.

The bankruptcy filing process generally is between four and six months. It can however take longer if you have additional documents submitted to the bankruptcy trustee.

Chapter 13

If you're in search of ways to get out of debt, you should consider declaring bankruptcy. Chapter 13 is a legal plan which allows you to pay off debts over three to five years. You will be able to stop foreclosure and make up the missed payments. Furthermore, you'll be able to safeguard your home from being repossessed by people who strip your lien.

You have to submit a specific repayment plan to the court, which is reviewed by a trustee. You'll have several opportunities to make changes to your repayment plan.

You can, for instance, extend your payment schedule on secured debts, such as a home mortgage, to decrease your monthly payment. You can also reduce the principal balance of a secured credit.

If you've been discharged from a Chapter 13 case, there are certain rules. It's recommended to speak with an attorney.

Unsecured debt

There are two options to consider for debtors to pay it off, or file for bankruptcy. In the event of filing for bankruptcy, it can allow you to get rid of unsecured debt and stop you from accruing any more. It is not necessary to employ an attorney to file for bankruptcy. For a start using this tool, you can try Upsolve, a free online tool.

Unsecured loans, like credit cards, are the most common kind of unsecured debt. Although they can be an excellent option for paying off debt, they can also be more risky than secured loans.

Unsecured loans carry higher interest rates over secured loans. Rates are dependent on the credit score of the person who is borrowing. But, the borrower can improve their rating through timely debt payments.

Some unsecured debt, like medical bills, are not eliminated through bankruptcy. You may be able negotiate a reduction in your debt or negotiate a settlement. A specialist in debt settlement could assist you in the negotiation of creditors.

Exempt property and bankruptcy discharge

When you file for bankruptcy, you have the right to exempt certain assets. This lets you pay off your debts. There could be exemptions that vary from one state to the next. A lawyer is suggested in case you are not sure of your rights.

The court can appoint an appointed trustee to collect the non-exempt property and sell the property. These proceeds will be used to repay the creditors.

In addition to settling creditors The bankruptcy trustee will also supervise the repayment plan. The majority of your assets can be kept. However, you could lose other property if violate a court order.

Chapter 7 bankruptcy is the most sought-after because it permits people to eliminate their majority of debts. Although you are able to keep certain property that is not exempt but creditors are able to get the property.

Credit effects

Although bankruptcy could affect your credit score, it is not an easy fix. It could take years to get your credit back to a healthy level.

Credit scores are affected by bankruptcy in two different ways. The first is that you could notice a significant reduction in your score over the initial year. It's a good idea to review your credit report often to ensure it's up to date.

There are also steps you can take to improve your credit rating. This can be accomplished by making significant changes to your lifestyle and setting up an entirely new budget. You should see a gradual improvement in your credit score if follow these steps.

Secured credit cards are also accessible. These cards are comparable to regular credit card, but require an additional security deposit. Some of these cards are available without any upfront fees.

These are only suggestions based on educated guesses. Professionals in the field can offer precise guidance. An Harrisburg bankruptcy lawyer can guide you through the legalities regarding bankruptcy. Making sure you understand everything before you sign your name on the legal dotted line.


Are You able to keep your property if you declare bankruptcy?

Can You Keep Your Property If You Declare Bankruptcy?

In bankruptcy, secured debts can be kept

It is possible to ask whether you are allowed to keep your home, car loan, or other secured debt when bankruptcy is filed. Although the general answer is yes however, there are a few exceptions to this rule. It is important to speak with an attorney regarding your particular situation and the consequences of filing.

Secured debt is a property that is an obligation on the debt. This is the first thing you need to know about it. If you default on your payments, a creditor can repossess your collateral. However, they can't sue you for bankruptcy. So long as you're making payments, you can keep your home, but you will not be in a position to use it to repay the secured debt. If you file a Chapter 13 bankruptcy, you have to renew your debt in order to keep your property.

If you're behind in your car or mortgage payments, you'll need to reinstate the debt in your bankruptcy. This gives you the opportunity to address your financial issues and be back on track with your repayment schedule. But, it could allow the creditor to seize the property, which can result in you losing the value of the property.

Secured creditors can be built on a security agreement, such as a deed or trust mortgage, judgment lien. They may take possession of your property if not make your payments and can also get interest and attorneys' fees from your property. Once the debt is repossessed and you are required to reaffirm your payment or the debt won't be discharged.

The collateral you have saved you hundreds of dollars. You should keep the insurance that you paid to secure the purchase and continue to make your payments. Negotiate the terms of a new contract, or transfer your collateral. Negotiations may be productive, leading to an increase in your debt from a creditor, giving you an extension of time for payment, or providing different conditions.

Selling your property is a different option to avoid foreclosure. Some states allow lenders to take the equity in your home, in the event that you're in default in your mortgage. Selling your home could be a viable option to pay your debt if you are facing urgent needs or need the cash.

Reaffirming the debt in Chapter 7 bankruptcy is another alternative. A majority of debts are wiped out in a bankruptcy, however certain lien liens that are associated with certain secured debts won't be. These liens will still be on your credit report and they will affect your credit score. Therefore, you must check your credit report after the bankruptcy filing.

Some debts can be paid off but will still be on your credit reports. It is also necessary to adhere to a specific timeframe in order to get your debts deleted from credit reports. People often think they are aware of the rules and regulations and then find out that what they assumed to be true was anything but. Rules can change, and at times, they're not easily understood. The best thing to do is to research prior to filing for bankruptcy. No one would like to declare bankruptcy, but if you're in that circumstance, you must be sure you know everything you must be aware of prior to proceeding.

The bankruptcy process can be difficult to understand. The automatic stay, which serves as legal protection that stops creditors from taking further actions against you, is a crucial fact to keep in mind. The debtor is entitled to stop any collection action and if you don't, the creditor might 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 into thinking they're getting help by a bankruptcy lawyer, however, they are in a much more dire financial situation than they thought. Before you sign any legal documents, make sure that you have review the fine print.


Things to Learn About Bankruptcy

Things to Know About Bankruptcy

Bankruptcy is a legal process which is utilized when a person or an entity cannot pay its obligations. It's usually enforced by a court order. This process is designed to provide relief for debtors who are in a position to not pay the debt. There are several aspects to consider when filing for bankruptcy.

Discharge does not eliminate debt

A discharge in bankruptcy is an order from the court that declares that the debtor has no personal responsibility for a specific debt. There are certain requirements that must be met in order to be eligible for a discharge. It is important to note that not all debts can be eliminated through bankruptcy.

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

The bankruptcy process is a legal process that permits debtors to reorganize and remove their debts . The court may also require additional repayments and could extend the period of bankruptcy.

Although bankruptcy may help eliminate a number of debts, it is also possible to eliminate a range of legal exceptions. Certain debts are not erased automatically, such as student loans, fraud, government-funded debts and spousal support.

The bankruptcy exemption excludes property

Debtors are permitted to exempt certain assets from Chapter 7 bankruptcy. The items could range from furniture to clothing to a computer. The exemptions are determined based on the item's value including the amount of mortgages and other lien. The rules may differ from one state to the next. For instance, in Colorado the debtor is allowed to exempt farm equipment up to $25,000 if it is a source of income.

A bankruptcy trustee may also sell non-exempt properties to pay debtors. It is usually done at a discount. If the value of the property is lower than the exemption value, the trustee is required to pay the amount that is less to the owner. The amount paid is typically equivalent to the estimated asset value, less the fees of sale.

After bankruptcy liquidation of property which isn't exempt

Chapter 7 bankruptcy often includes the liquidation of non-exempt property. The bankruptcy trustee is responsible to liquidate and collect assets of the debtor. Following the discharge of the debtor's obligations the trustee distributes the profits from the sale of the debtor's nonexempt property to the creditors.

The trustee has to consider a variety of aspects before deciding to liquidate an asset or not. The expense of liquidation as well as the likelihood that sufficient funds will be available must be taken into consideration by the trustee. The trustee must determine whether it is feasible to sell the asset. The asset's value is to be assessed.

in on the trustee's in on the trustee's.

For example, if you own a luxury car that is worth more than the value of other belongings, you might not want to dispose of it. It may be difficult to locate someone to buy the car.

Opposition to bankruptcy discharge

Your creditors could object to your bankruptcy filings. This is known as an adversary proceeding. The opposing party must demonstrate that there are grounds for an objection.

The reasons to file an objection could be a false or misleading written statement or the misappropriation of funds in a fiduciary capacity. A creditor can be able to file an objection for not complying with an order of a court. For instance, if you did not provide your tax documents in the manner required by the Bankruptcy Register, your LIT might challenge the discharge.

Debtors may respond to opposition by asking the court to reopen the case. Sometimes the Bankruptcy Register will not pursue further action. In other instances, the trustee will require additional payment.

A person who is in fraud when transferring title to property may cause an opposition to discharge. A failure to account assets that were lost during bankruptcy is another typical reason.

The formal proceedings can go on for an extended time

The long-term strategy of execution is one of the most challenging aspects of a bankruptcy. Although creditors can resist, it's not unusual for them to do so. But, patience and perseverance are the key to success. You can make the first steps toward debt-free living by enlisting the assistance of a credit counselor or coach. No matter what the cause an opportunity to start over is the best option. The trick is avoiding the mistakes and identifying the blocks. There are numerous resources online as well as a help line to help you. If you're the market for a credit counselor ensure you've done your homework and don't go to the dark side.Seek professional advice from experts if you need. A Harrisburg bankruptcy attorney can be reached to address any questions and can assist you with the legal process.


What exactly is Bankruptcy?

What is Bankruptcy?

In general, when a person is unable to pay their debts, they seek relief from their debts via bankruptcy. Bankruptcy is a legal proceeding that's usually enforced by a court order.

Chapter 7

Contrary to Chapter 13 bankruptcy, Chapter 7 allows individuals, businesses, and non profit organizations to discharge all debts so long as they meet the bankruptcy means test. If you'd like to determine whether your debt is dischargeable then you must seek the advice of a bankruptcy lawyer.

The bankruptcy means test involves finding out your earnings and expenses and whether you have enough money to repay your debts. You may need to file a repayment plan with your creditors in certain circumstances. The plan may include paying off your debts in installments over three to five years.

Your trustee might also try to take your property. You may be allowed to keep certain assets based on your circumstances. You may be able to take advantage of the federal exclusion system that is in place in some states to protect specific property.

The Legal Services Corporation offers free legal assistance to bankruptcy. There are bankruptcy counseling services also available. A credit counselor can help determine whether you're eligible to file bankruptcy and assist you in planning your payments. A professional is the best representation. A Harrisburg bankruptcy lawyer can help you understand the legalities of declaring bankruptcy.

In accordance with the Bankruptcy Code, you must present a document proving your financial responsibility to the bankruptcy court. This document must demonstrate that you have completed a class on financial management. A statement of profit and loss may be required. This will enable your lawyer to determine whether you're permitted to retain your home.

Chapter 7 doesn't allow for the discharge of certain debts. These include child support, alimony, and loans backed by a government department.

Chapter 7 bankruptcy is a popular type of bankruptcy however there are some negatives. It can be a great way to make a fresh start however it will not solve all your financial problems. Chapter 7 won't be able to discharge certain financial obligations, such as tax debt and student loans.

Chapter 13

A Chapter 13 bankruptcy generally requires the debtor to create the creditors a plan to be paid over a period of three or five years. A bankruptcy judge is able to approve the plan and can modify it in the event of need. Usually, the debtor's monthly income is used to determine the repayment plan.

The person in debt who is unable to make payments is likely to be barred from Chapter 13 relief. They may have to change into Chapter 7 bankruptcy. The debtor isn't able to file for personal or business loans during the Chapter 13 bankruptcy case. The debtor might have to pay certain back taxes.

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

When the plan is complete and the Trustee has completed it, he will send an account to the creditors, stating the amount the debtor has paid to them. The report will also mention the amount due in the plan. Late claims are rejected by the Trustee. If the plan is approved by the court, the claim will be dismissed.

Within 30 days of declaring bankruptcy, the first payment has to be made. The Trustee also needs to be given an original payment receipt from the attorney of the debtor. The debtor might be able amend the plan.

If a debtor misses an installment then the Trustee will give them a notice. This notice is like an legal "stop sign" for the creditor of the debtor. It is unlawful for debt collectors or creditors to try to collect the debt.

If a debtor is late on multiple payments may become ineligible to make future payments. The creditor can ask the court for permission to collect the debt if the debtor is not able to make the payments. Creditors may be granted permission by the court to seize the vehicle.

If a debtor fails to make an installment, they should contact an attorney immediately. They may be able to change the repayment plan to make up for the late payments. It is also an option for bankruptcy judges let them convert their case to Chapter 7.

Chapter 13 bankruptcy is designed to help individuals who need help paying their debt. It is a way to protect co-signers and stop repossessions and foreclosures. It can be used to assist debtors to get on the right track and avoid future problems.

The reasons why people file for bankruptcy

Causes for Consumers to Apply for bankruptcy

People who file for bankruptcy are typically due to a range of factors. These include poor personal finance decisions, medical debts, and home mortgages. Many consumers file multiple times this can result in a lot of stress for their financial situation.

Being in debt for medical expenses is a major issue for millions of Americans. Unexpected medical bills can quickly escalate into a financial disaster. People who are in poor health are more likely to accrue medical charges.

The United States spends large amounts of money on its health healthcare. It spends more per capita than any other nation in the world. However, there are tens of millions of uninsured and underinsured people, making them susceptible to costly medical expenses.

Many Americans are living pay to pay. In fact, a recent study showed that nearly one-in-five households could pay for medical expenses. Happily, Congress has passed legislation to help pay for the upfront cost of healthcare.

The Affordable Care Act has capped the amount of money you can spend out of pocket. Although this has reduced the amount of medical debt certain Americans are facing, some have difficulty to pay for their healthcare.

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

Collectors of medical debt typically add charges to interest-free debt. It is also possible to see unpaid medical bills added to your credit score. These debts stay on your credit file for seven years.

Avoiding medical debt is the best method to manage it. If you're not able to make your payments then bankruptcy might be an option.

Medical debt is one of the most frequent reasons that people file for bankruptcy. According to the Consumer Bankruptcy Project, about half of bankruptcy debtors cite medical expenses as the primary reason for contributing to the bankruptcy.

A mortgage on a house is a big financial commitment. It doesn't matter if you're purchasing a home for yourself or with a partner you will need to know the total cost. You don't want to end up with a mortgage you can't pay.

Before you apply for mortgages, the most important question is what kind of mortgage is best for you. There are many possibilities. You can

There are a variety of options to choose from a conventional loan that has an adjustable or fixed rate or the VA loan or an FHA loan. It is also possible to choose one with a long or short term.

The collection of all pertinent details is the most effective way to decide which type of mortgage to take. This includes the conditions and terms of your loan. A bankruptcy lawyer in your area will help you understand the options available. A Harrisburg lawyer can meet with you to answer any questions you may have.

There are other things to consider, including whether you're eligible to receive loans. If you're a military member or a veteran, you could be eligible for a VA loan. If you live in an area that is rural you might be able to get an USDA loan. Be sure to find the most suitable mortgage.

The process of getting a mortgage after bankruptcy can be a challenge however, it's not impossible. As long as you're ready to put in the work and work hard, you'll be able to find a lender to collaborate with you. The first thing you need to do is to have a good credit score. That means you'll need to obtain a preapproval. The best method to achieve this is to obtain the lowest price.

A bankruptcy filing can stop the garnishment of wages. You could actually get back any wages you have been able to garnish within 90 days of filing.

The laws regarding wage garnishment differ for different types of debt. For instance, alimony or child support can be garnished more heavily than taxes. The total amount of wages garnished can't exceed 25 percent of an individual's disposable income.

Additionally, there are state-specific laws on how much can be garnished. There are exemptions in certain states for medical or government aid. There are also limits on the amount of personal property that can be garnished.

The majority of states permit an individual to apply for an order from the court to stop wage garnishment. It is necessary to show proof of exempted income to apply for an exemption. For instance, you could claim your Social Security benefits as an exemption.

There are many other methods to stop garnishing your wages. One way is to use an expert in credit counseling to negotiate a payment plan with your creditors. Credit counseling services may charge you an amount for its services. However, it might also be able to reduce the amount you need to pay.

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

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

There are a few things you must know about debt collection regardless of whether or not you're in bankruptcy. These include how to locate a debt collector and the best way to have your debts paid.

Discharged debts

Your personal circumstances will determine if your debts can be discharged following bankruptcy. You have to be able to pay the dues. To pay your creditors, you may need to sell your home or vehicle. The bankruptcy trustee will examine your assets and debts and determine whether your debts can be discharged.

There are many reasons why a judge will not release a debt. One of the most frequent reasons is that the debtor has hidden assets. In this scenario the creditor is able to prove that the debtor lied on their loan application.

In the event that the debtor did not disclose all their assets, the bankruptcy court didn't discharge the debt. The court however, adopted the position of the debtor and stated that insufficient funds were available to cover the outstanding debts.

The Town brought action against the debtor through an Action in District Court as well as an Compulsory Counterclaim. They also tried to foreclose municipal liens. The Town also tried to collect the discharged debts using SS 524.

Collection efforts

You may be approached by creditors during bankruptcy process. This must be stopped. You are covered by the law of both states and federal. You might be able bring a lawsuit against creditors if victimized.

The Fair Debt Collection Practices Act (FDCPA) defines the legal requirements that debt collectors must follow to ensure compliance with the law. A judge can also impose sanctions on collectors who do not follow the law. If a debt collector is found in violation of the law, the debt collector could face fines or have to pay attorney's fees.

The Fair Credit Reporting Act (FCRA) guarantees that creditors report exact information. This is important, as inaccurate information can damage your credit. You should always review your credit report to make sure that you have accurate information regarding your credit card.

An automatic stay protects you from collection attempts. This is a court ruling that stops creditors from collecting on your obligation.

Discrimination between government units and private


It doesn't matter if you're a private company or a government one, bankruptcy filings will prevent the making of any decision that are based upon them. You can't exclude bankruptcy filings from any loan program run by the government. But, you should definitely consider them when evaluating a job applicant's credit worthiness.

It is important to be educated about the law and the pitfalls to stay clear of discrimination. It is also possible to have a lawyer assist you in the case. In Harrisburg, PA, the bankruptcy lawyer will help you understand what is your right. This is particularly true if your business operates in more than one jurisdiction. The third circuit was considerate enough to address the issue in a timely manner and is relevant for private sector employers.

Particularly specifically, specifically, Third Circuit found the Bankruptcy Act's most well-known acronym be an unstarter. This means that bankruptcy can't be deducted from your tax bill. It isn't possible to exclude bankruptcy filers from government loan programs. And you can't deny bankruptcy filings government benefits. A good thing is that if you're unable to file bankruptcy and you are unable to take on any private or governmental employers for discrimination.

Identifying a debt collector

It can be difficult to identify a debt collector in bankruptcy. Scammers pretend to be debt collectors and creditor looking for fast cash. They might employ a variety of techniques to get you to settle the debt.

If you find yourself in this position, you may want to get legal advice. A creditor can be accused of causing damage when he or she breaches the law. A court hearing could be necessary to reopen bankruptcy proceedings. This legal process could require you to hire a lawyer.

Consult your bankruptcy lawyer to determine whether your debt is discharged. This could help you to make a fresh start. It is possible to bargain a lower settlement with your debt collector.

The bankruptcy discharge decree prevents creditors from trying to collect any debt that is dischargeable. The court can also issue an an injunction to prevent creditors from contacting or trying to collect debt discharged. This will stop garnishments of wages as well as car repossessions and foreclosure.