What are the benefits of Declaring Bankruptcy?

Bankruptcy Attorney near Harrisburg

What are the advantages from declaring bankruptcy?

There are many reasons why you could make bankruptcy an option. One reason is to preserve your Social Security benefits. Another is to have new beginnings. Basically, a lot of times people declare bankruptcy due to the fact that they're not able to keep up with their finances.

Chapter 7

Chapter 7 bankruptcy is a process that helps you get a fresh financial start. It allows you to discharge your debts with no impact on the assets of others. However, the process could be quite difficult and can take longer if your are owed money for student loans or if you need to sell a property.

It is essential to attend a credit counseling session at least six months prior to the filing. A court trustee can assist you liquidate your assets and answer any questions you might have from creditors.

In addition there is a means test. Bankruptcy Code includes a means test. The test is a way to measure your earnings and expenses. The test presumptively assumes that 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 way to restructure debts. This can make it easier to pay past due bills.

You must make a repayment plan in advance of when you declare bankruptcy. The plan will outline the amount you'll pay back to your creditors over a period of three or five years. You will also have to make sure that you have enough money to pay the payments.

You should consider contacting a non-profit credit counseling agency before you file for bankruptcy. They are able to offer no-cost assistance. You can also get help putting together a payment schedule.

In Chapter 13, the debtor may retain some assets. But, not all kinds of assets are covered.

Automatic stay

The legal stay, also referred to as an automatic stay is a legal process that shields debtors from certain creditors. This means that a creditor is not able to file a lawsuit or take possession of a debtor's property in bankruptcy cases that are open.

This is a helpful option for those who have a debtor who is harassed, but the benefits can be limited. Typically, the length of an automatic stay will depend on the amount of filings made in one year.

There are some exceptions. For example, the court may grant relief from an

automatic stay for up to a couple of months, as long as the property is not necessary for an effective restructuring.

A creditor could also ask for relief from the stay. This includes re-enforcing a lien, obtaining payments from the debtor, or protecting the value of an asset.


Liquidation refers to a procedure in which assets are sold in order to pay off creditors. In the case of the company the debtor could choose to liquidate their own property or let an uninvolved third party perform the process on his or her behalf. A trustee appointed by the court is appointed to oversee the assets of the company and distribute the profits to creditors.

Insolvency laws are intended to ensure that creditors receive fair treatment. This is accomplished by providing sufficient notice to all parties. There are two main kinds of creditors: secured and unsecured. Secured creditors are usually the main beneficiaries of outright liquidation. Non-secured creditors receive the same benefits.

There are several insolvency laws that are in force all over the world. They differ in several important respects.

Security of Social Security Income from creditors

Anyone who has Social Security benefits can file for bankruptcy and shield their earnings from creditors. There are exceptions to this rule.

If a creditor gets a judgment against you, they can take over your Social Security payments. It is important to be aware of which types of debt could be taken out of your funds. This can include past-due child support, delinquent alimony as well as unpaid federal tax obligations.

If you're the victim of a judgement from a judge for child support that is not paid or alimony, the Social Security Administration may withhold the benefits you receive. In addition the Department of Treasury can withhold Social Security payments if you have past-due federal tax bills.

Transferring benefits from one account to another is an exception to this rule. If you directly deposit funds into a benefit account, banks have to safeguard the funds. If the money goes to a bank account of a creditor's account, it'll take more effort to recover it back.

Consider hiring a Harrisburg bankruptcy attorney prior to beginning the bankruptcy before you begin the bankruptcy process. This will help ensure that you are provided with the correct legal representation or knowledge in the process or accomplish what you want to accomplish.


Citations and other links

How bankruptcy can help people pay For Debt

There are a variety of reasons why you might file bankruptcy. It is important that you understand your options and make an informed decision that is right for you. Below are a few of the key factors to consider.

Chapter 7

Chapter 7 bankruptcy is an excellent option for those who have serious debt. This helps people make a financial turnaround and allows them to get a new start. If you're thinking of filing for bankruptcy, contact an attorney for assistance.

It is necessary to go to a credit counseling meeting with an agency that offers credit counseling for non-profit organizations prior to filing. This will determine whether bankruptcy is the best option.

You'll also need to meet certain income requirements and asset requirements. It is possible to use the exemptions provided by state laws in a few states to keep your property from being sold to pay your creditors.

The procedure of filing bankruptcy typically lasts between four and six months. It can however be longer if you need additional documents submitted to the bankruptcy trustee.

Chapter 13

It is possible to file bankruptcy if you want to get rid of your debt. Chapter 13 is a legal plan that allows you to pay off debts over three to five years. You will be able to stop foreclosure and catch up on past due payment. Furthermore, you'll be able to safeguard your home from being removed by lien strippers.

You have to submit a specific repayment proposal to the court, which is reviewed by an administrator. You will be given several opportunities to make changes to your repayment plan.

In order to reduce the monthly amount you pay it is possible to extend the time frame for payments on secured debts like mortgages. It is also possible to reduce the principal balance of a secured credit.

There are rules that apply if you've had a previous discharge from the course of a Chapter 13 case. It is recommended to speak with an attorney.

Unsecured debt

If you're in debt, you have two options: paying the balance or filing for bankruptcy. Filing for bankruptcy will aid in eliminating debt that is not secured and prevent you from accruing more. You don't need to hire an attorney if you do not want to. To begin using the tool, try Upsolve, a free online tool.

Unsecured loans, like credit cards are the most well-known form of unsecured debt. They can be a great method of paying off debt when it's due, but they're more risky than secured loans.

The interest rates for loan that are not secured are usually more expensive than secured loans. Rates are determined by the credit score of the borrower. The borrower can improve his credit score by making regular payments on debt.

Certain unsecured debts, like medical bills, cannot be removed by filing bankruptcy. Instead, you may be in a position to negotiate a lower amount or even a settlement. A debt settlement expert will contact the creditors on your behalf.

Exempt property and bankruptcy discharge

You are entitled to exempt certain property from bankruptcy proceedings. This lets you pay off debts. Exemptions may vary from state to state. A lawyer is suggested in case you are not sure of your rights.

The court can appoint a trustee to collect non-exempt property, then sell it. The proceeds are used to pay off creditors.

The bankruptcy trustee is responsible for monitoring the repayment plan and pay the creditors. A majority of your possessions is able to be retained. But you can lose other property if don't comply with the court's order.

Chapter 7 bankruptcy is the most well-known because it permits individuals to pay off the majority of debts. While you may keep certain property that is not exempt however, creditors will still be able to be able to take it.

Credit effects

The bankruptcy process can have a major negative impact on your credit score but it's not an instant repair. It could take several years to return to a healthy level.

Two factors can impact your credit score should you file for bankruptcy. First, you will likely experience a drastic reduction in your score over the first year. To ensure the accuracy of your credit report, it is an excellent idea to regularly check your credit reports.

In the second, you can take steps to rebuild your credit. This can be accomplished through major lifestyle changes and creating an entirely new budget. You should see a gradual improvement to your credit score when you follow these steps.

Secured credit cards are also available. They are similar to normal credit cards, but require an upfront security deposit. Some of these cards do not have upfront charges.

These are just suggestions basing on educated guesses. To get accurate information, you should seek advice from professionals who are experts in this field. In Harrisburg, PA a bankruptcy attorney will be able to guide you on the legal aspects of bankruptcy. Making sure you understand everything before you sign your name on that dotted line.


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

Can you keep your property if you declare bankruptcy?

Secured debts can remain in bankruptcy

If you are a homeowner with a mortgage, car loan or other type of secured debt, you might be wondering if you can keep the property if you file for bankruptcy. While the majority of cases, you can but there are certain exceptions. You should discuss your specific situation with an attorney and understand the consequences of filing.

Secured debt is property which is secured by a lien on the debt. This is the first thing you need to know about it. There is a possibility for a creditor repossess your collateral if you are unable to pay your debts however they cannot claim against you in the event of filed for bankruptcy. You can keep your property in the event that you pay regular payments. But you will be unable to use your secured loan cannot be used to pay. In the case of a Chapter 13 bankruptcy, you have to renew your debt in order to keep your home.

Reaffirm your debts in bankruptcy if you are behind in mortgage or car payment. This will allow you to have the opportunity to address your financial problems and be back on track with your repayment schedule. It will allow the creditor access to your property and will cause you to lose the value of your property.

Secured creditors may be based on a security arrangement like a deed or trust mortgage, judgment lien. They are able to take your property if not pay the debt and can also collect interest and attorneys' costs from the property. After the debt is taken, you must reaffirm your payment or the debt will not be discharged.

Keeping your collateral can save you hundreds of dollars. However, you must retain the insurance you would have paid to secure your purchase, and you must continue to make your payments. You may negotiate the terms of a new contract with your creditor or transfer your collateral to a different person. Negotiations are possible and can lead to your creditor cutting or extending the time you pay them, or negotiating different terms.

Selling your property is another way to avoid foreclosure. If you're behind on your mortgage, some states permit creditors to take the equity of your home. If you're in an emergency and need the money, selling your property could help you pay off your loan.

Reaffirming debts in Chapter 7 bankruptcy is another alternative. While the majority of debts can be discharged in bankruptcy, liens attached to secured debts will not. These liens will be on your credit report and influence your credit score. After filing bankruptcy, it's essential to examine your credit reports.

Some debts can be paid off but be on your credit reports. You must also adhere to a specific timeframe in order to get your debts removed from credit reports. People often think they are aware of the regulations and rules and later discover that what they believed to be correct was everything but. Rules change, and often are not explained very well. Do your research prior to declaring bankruptcy. Although no one would like to go through the process, you should be prepared should you be forced to.

The bankruptcy process is confusing. The automatic stay, which serves as legal protection that stops creditors from taking any further action against you, is an important idea to remember. The debtor has the option of stopping collection activities, but you may refuse to stop them. If the creditor doesn't agree to this, they may 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 numerous instances of fraud in bankruptcy. Sometimes people get taken advantage of in a situation they assume is supposed to help them, but then discover that they're in much more financially trouble than they anticipated. Always read through any small print and be sure to understand what it is you are giving up and signing before you sign any legal document.


Things to Know About Bankruptcy

What You Need To Learn About Bankruptcy

Bankruptcy can be used to resolve debts that are not being paid. It is generally imposed by a court order and is meant to provide relief to debtors, as they're no longer in a position to repay the debt. There are many aspects to consider when applying for bankruptcy.

Discharge does not eliminate debt

A discharge is an order issued by a court stating that the debtor is released from all personal liability for a particular debt. In order to be eligible for a discharge, there are a few requirements. It is crucial to remember that not all debts can be eliminated through bankruptcy.

Alimony, student loans as well as child support are a few examples of non-dischargeable loans. These debts must be repaid to the lender.

A bankruptcy is a legal process which allows debtors to organize and get rid of the burden of debt. The court can also require additional payments or prolong the bankruptcy duration.

Although bankruptcy may be able to help eliminate some debts, there are a variety of exceptions. Certain debts are not removed automatically, for instance, student loans and fraud, as well as government-funded debts and spouse support.

The bankruptcy exemption excludes property

Debtors are permitted to exempt certain assets from Chapter 7 bankruptcy. These items could include furniture, clothing, or a computer. The exemptions are determined by the value of the item, without regard to any mortgages or liens. It is important to keep in mind that this policy can differ according to the state. For instance in Colorado the debtor is allowed to exempt farm equipment up to $25,000 as long as it helps the owner's income.

A bankruptcy trustee can also sell non-exempt properties to pay debtors. Typically, this is done with a discount. If the value of the asset is lower than the exemption amount, the trustee pays the difference to the owner. The amount is usually the same as the value estimated for the asset, less the fees of sale.

Liquidation of property that is not exempt after bankruptcy

Liquidation of nonexempt property is a standard part of Chapter 7 bankruptcy. The bankruptcy trustee is responsible to collect and liquidate the debtor's assets. After the discharge of the debtor's liabilities the trustee distributes the proceeds from the sale of the debtor's nonexempt property to the creditors.

A trustee's decision to liquidate or not liquidate an asset is based on a variety of factors. The trustee must consider the cost of liquidation as well as the probability of having funds in the right amount. The trustee has to determine if it is possible to sell the asset. The value of the asset has to be considered.

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

If your car is more valuable than other assets, it might be wise to not sell it. It could prove difficult to find buyers.

Opposition to the discharge of bankruptcy

If you file for bankruptcy, your creditors could challenge your bankruptcy. This is known as an adversary proceeding. This is known as an adversary proceeding.

The reasons to file an objection could be a false or misleading written statement or misappropriation of funds under a fiduciary position. An objection can be filed by a creditor if the court's order is not adhered to. For example, if you didn't provide your tax documents in accordance with the requirements of the Bankruptcy Registrar, your LIT might be able to block the discharge.

Debtors can react to objections by asking the court to reopen the case. Sometimes, the Bankruptcy Registrar will decide that no further action is needed. However, at other times the trustee may demand further payments.

A person who has committed fraud in transferring title to property may be grounds for an opposition to discharge. Another cause is inability to record property that was lost in bankruptcy.

The formal proceedings may last for years.

One of the most challenging aspects of a bankruptcy is the long-term plan of implementation. Although creditors will sometimes resist, it's not unusual for them to be able to. However, patience and perseverance are key. You can make the first steps toward debt-free life with the help of a credit advisor and/or an advisor. Whatever the reason, a fresh start is the most effective option. Beware of the traps and recognizing the challenges is crucial. There's a great free helpline and online resources that will guide you to the right path. If you're in search of credit counsellors, make sure you do your homework and seek advice from professionals if necessary. An Harrisburg bankruptcy lawyer is on hand to answer any questions you may have and assist with the legal procedure.


What is Bankruptcy?

What exactly is Bankruptcy?

Generally, when someone can't pay back their debts and is unable to pay them, they can seek relief from their debts via bankruptcy. It can be an official proceeding usually imposed by an order from a court.

Chapter 7

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

The test of bankruptcy is finding out your earnings and expenses and whether you have enough money to repay your debts. In some cases you could be required to submit the repayment plan with your creditors. The plan may include paying off your debt in installments over 3 to 5 years.

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

The Legal Services Corporation offers free legal assistance to bankruptcy. It also offers bankruptcy counseling services. A credit counselor can assist you determine whether you are eligible for bankruptcy, and help you develop the repayment plan. It is best to consult an expert. A Harrisburg bankruptcy attorney will assist you in the legalities of declaring bankruptcy.

The Bankruptcy Code requires that you provide a proof of financial responsibility to the bankruptcy court. The certificate should prove that you have completed a course in financial management. A statement of profit and loss could be required. This will help your attorney determine whether you can retain your home.

There are also a variety of debts that cannot be discharged under chapter 7. This includes child support and Alimony, and loans that are guaranteed by a government unit.

Chapter 7 bankruptcy is a common form of bankruptcy, however, there are some disadvantages. It could be a means to get a fresh start but it's not going to solve all your financial issues. Chapter 7 isn't able to pay off certain financial obligations, such as tax debts and student loans.

Chapter 13

The majority of the time, generally, Chapter 13 bankruptcy requires the debtor to come up with a plan for paying creditors over a three to five year period. The plan is approved by a bankruptcy judge and a judge can modify the plan in case it is needed. Usually, the amount of the debtor's income per month is used to determine the repayment plan.

If the debtor misses payments, they may be disqualified from receiving Chapter 13 relief. They could be required to convert into Chapter 7 bankruptcy. The debtor can't file for personal or business loans in the Chapter 13 bankruptcy case. The debtor may be required to pay certain tax back.

The debtor is required to supply the Trustee with a copy of their income statement and proof of their financial management. They also have to provide copies of late-filed federal tax returns.

The Trustee will send to creditors a report that outlines the amount of money that the debtor is owed. In addition, the report will mention the balance due on the plan. Late claims are rejected by the Trustee. When the plan is approved by the court, the claims will be dismissed.

Within 30 days of declaring bankruptcy, the first payment must be made. The Trustee must also be given an exact copy of the invoice from the attorney of the debtor. The debtor may be able amend the plan.

The Trustee is required to send an notice to a debtor in the event that they fail to pay their dues. The notice acts as a legal "stop sign" for the debtor's creditors. It is against the law for creditors or debt collectors to seek to collect on the debt.

A debtor who fails to make multiple payments may become ineligible for future payments. The creditor may request permission from the court to collect the debt if the debtor is unable to pay. A creditor can be authorized by the court to seize a vehicle.

An attorney should be called immediately if a debtor is unable to make a payment. They might be able modify the repayment plan to cover the missed payments. It could also be possible for a bankruptcy judge permit them to change their case into Chapter 7.

Chapter 13 bankruptcy is designed to help those who aren't able to pay their obligations. It can protect co-signers and prevent repossessions and foreclosures. It can be used to help debtors get on the right path and avoid further problems.


Bankruptcy Attorney Harrisburg, PA

There are many reasons why people file bankruptcy.

There are many reasons why people file bankruptcy.

Many factors contribute to individuals filing for bankruptcy. This includes poor financial choices, medical debt and mortgages on homes. Many consumers file for bankruptcy repeatedly which puts lots of stress on their financial situation.

Medical debt is a major issue for millions of Americans. Unexpected medical bills can quickly escalate into a financial disaster. Health-related patients are more likely to be impacted by unexpected medical expenses.

The United States spends a lot of dollars on health care. It is the largest spender per capita than any other country around the globe. However, there are tens of millions of uninsured and underinsured people, making them susceptible to costly medical bills.

A lot of Americans live paycheck to paycheck. Recent research revealed that nearly one fifth of American households cannot afford the medical treatment they require. Fortunately, Congress has passed legislation to assist with the initial expenses of healthcare.

The Affordable Care Act has capped out-of-pocket spending. This has reduced the burden of medical debt for some Americans however, many struggle to pay for their health insurance.

In addition, the number of medical debt collectors has risen. They may sue you or pursue legal actions against you.

Most often, debt collectors for medical bills will tack on extra fees to debts that are not backed by interest. It is also possible to see unpaid medical bills being added to your credit score. These accounts remain on your credit file for seven years.

The best way to avoid medical debt is to be aware of it. best method to manage it. If you're unable to pay your bills bankruptcy could be an alternative.

One of the most frequent reasons for people to file bankruptcy is that they are in medical debt. The Consumer Bankruptcy Project estimates that approximately half of bankruptcy debtors have medical expenses in the bankruptcy.

The process of getting a mortgage for your home is a significant financial investment. Whatever the case, whether you're purchasing a house for either you or with a partner, you will need to know the total cost. You don't want to end up with the burden of a mortgage that you cannot pay.

The most important question to ask yourself before taking out a mortgage is which kind of mortgage is right for you. There are numerous possibilities. There are many options.

It is possible to choose a conventional loan with either a fixed or variable interest rate you can choose you can choose a VA loan, or a FHA loan. It is also possible to choose one with a long or short-term.

The best way to figure out which type of mortgage would best fit your needs is to gather all the pertinent details. This includes information about the conditions and terms of your loan. It is also helpful to have a local bankruptcy lawyer on hand to make sure you understand all options. In Harrisburg, PA a bankruptcy lawyer is available to meet with you and address any questions.

You should also consider whether you qualify to receive a loan. If you're a veteran, you may qualify for a VA loan. If you live in an area that is rural you might be able to get an USDA loan. Also, you should look into the most reliable mortgages.

Finding a mortgage following bankruptcy can be a challenge however, it's not impossible. You must be prepared to put in the effort and find a lender that is willing to accommodate your needs. However, first, you'll need to have good credit. This means that you'll need to obtain an approval prior to applying. The best method to do so is to get the lowest rate.

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

Different kinds of debts have different laws on wage garnishment. For instance, alimony and child support may be garnished more frequently than taxes. The total amount of wages garnished can't exceed 25 percent of an individual's income.

There are also laws specific to states regarding the amount that can be garnished. Certain states offer exemptions for medical or government aid. There are also limits on the amount of personal property which can be garnished.

A majority of states allow individuals to apply for a court order to stop garnishment of wages. In order to request an exemption, you need to show proof of income exempt. For example, you can claim your Social Security benefits as an exemption.

There are many alternatives to stop wage garnishment. You can utilize credit counseling services to assist you find a payment plan. Although credit counseling services may charge a fee, it may also be able to help to lower the amount that you pay.

Collections and Bankruptcy - Do you have to pay Back Debt After Bankruptcy?

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

If you're in bankruptcy or not you are, there are a few things that you should know regarding debt collection. This includes finding a debt collector and how to have your debts wiped out.

Discharged debts

Your personal circumstances will determine if your debts will be discharged following bankruptcy. The debts you owe must be able to be settled. You might have to sell your car or property to pay your creditors. Your debts and assets will be scrutinized by the bankruptcy trustee, who will decide if your debts can or cannot be discharged.

There are many reasons a judge will not let a debt be discharged. The main reason for refusing to pay a debt is that the creditor may have assets hidden from the public eye. The creditor could demonstrate that the debtor has hidden assets.

Because the debtor failed to reveal all assets, the bankruptcy court didn't discharge the debt. The court, however, took the position of the debtor, stating that there were insufficient funds to pay for the debts.

The Town filed an action against the debtor through an action in District Court and a Compulsory Counterclaim. They also tried to seize municipal liens. The Town also attempted to collect discharged debts through SS 524.

Collection efforts

During the bankruptcy process there is a chance that you will receive calls from creditors. This must be stopped. You are protected by the law of both states and federal. If you are being harassed, you may have a strong case for filing an action against your creditors.

Fair Debt Collection Practices Act, (FDCPA), outlines the legal requirements that debt collectors must adhere to in order to ensure compliance with the law. A judge can also impose sanctions on collectors of debt who violate the law. If a debtor is caught violating the law, the collector may be fined or have to pay attorney's costs.

The Fair Credit Reporting Act (FCRA) assures creditors that they report exact information. This is vital, since inaccurate accounts can harm your credit. To ensure you get accurate information on your debt, always review your credit report.

An automatic stay shields your from any collection actions. This is a court ruling that stops creditors from collecting on your debt.

Discrimination by governmental units and private


Whether or not you are an employer of a government or private sector the law of the land prohibits you from making any decision in a bankruptcy proceeding. You can't exclude bankruptcy filings from government loan programs. They can be considered when evaluating a candidate's creditworthiness.

The best way to avoid discrimination like this is to educate yourself on the law and its legal risks. Furthermore, you may be able to engage a lawyer to help you with your situation. If you live in Harrisburg, PA, a bankruptcy lawyer can help you know which rights you have. This is particularly true for employers that operates in several jurisdictions. The third circuit was considerate enough to take a stand on an important and timely issue for private sector employers.

In particular specifically, specifically, Third Circuit found the Bankruptcy Act's most well-known acronym be non-starter. The result is that bankruptcy cannot be deducted from taxes. It isn't possible to exclude bankruptcy filers from government loan programs. Also, you cannot refuse bankruptcy filings benefits from the government. The positive side is that, if you aren't able to file bankruptcy, you can't bring a lawsuit against a private or governmental employer for discrimination.

Identifying the debt collector

It can be difficult to spot a debt collector in bankruptcy. Fraudsters often claim to be debt collectors for creditors and are searching to make a quick payment. They may use a variety of methods to get you to pay for the amount owed.

You might require legal assistance when you are in a similar situation. If a creditor is found to be in violation of the law, he or she can be accused of causing damages. You may also have to revisit your bankruptcy case and seek an adversary proceeding. This is an court process that could need you to engage an attorney.

Contact your bankruptcy attorney If you're not sure if your debt can be discharged. This will help you make an opportunity to start over. It is possible to negotiate a lower settlement with the debt collector.

The bankruptcy discharge decree stops creditors from pursuing collection actions on the dischargeable debt. The court may also issue an injunction which prohibits creditors from harassing and demanding payment on the debt that has been discharged. This will prevent the garnishment of wages, car repossessions and wage garnishments and foreclosure.