What are the advantages of Declaring Bankruptcy?

Bankruptcy Lawyer in Harrisburg, PA

What are the benefits of declaring bankruptcy?

There are numerous reasons to file for bankruptcy. One of them is to secure your Social Security benefits. The other is to get a fresh start. In general, many times , people file for bankruptcy because they are just not able to maintain their finances.

Chapter 7

Chapter 7 bankruptcy can help you make a new financial beginning. It allows you to discharge your debts and not affect the assets of others. But, this process can be extremely difficult and could be longer if you have student loan debt or if you need to sell your home.

You'll need for a counseling session at least six months before filing. A court trustee can help you to liquidate your assets and will answer any questions you may have from creditors.

Furthermore there is a means test. Bankruptcy Code includes a means test. The test measures your income and expenses. If your earnings are greater than the median for the state the test will conclude that you're using it in a way.

Chapter 13

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

If you decide to file for bankruptcy, you will need to create an repayment plan that must be approved by the bankruptcy judge. The plan will define how much you'll pay your creditors in the course of a three to five years. It is essential to ensure that you have sufficient income to pay the bills.

You should think about contacting an agency for credit counseling that is non-profit before filing bankruptcy. They will be able to provide free assistance. Also, you can get assistance creating a payment plan.

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

Automated Stay

The automatic stay, sometimes referred to as the legal stay, is an legal procedure created to shield debtors from certain creditors. This means that a creditor cannot file a lawsuit or to foreclose on the property of a debtor when the bankruptcy case is open.

While it is a powerful option for debtors who are harassed but the benefits could be only limited. The duration of an automatic stay is usually determined by the number of filings that were filed within a particular year.

There are exceptions. There are exceptions.

An automatic stay can be granted for a duration of a few months as long as the property subject to restructuring does not require.

A creditor may also request relief from the stay. These can include re-enforcing or collecting debtor payments as well as preserving the value of the asset.


Liquidation is the term used to describe the sale of assets in order for creditors to be paid. Depending on the nature of the business the debtor could choose to liquidate their own property or let an outside party take care of it on his or her behalf. In either case a trustee appointed by a court is in charge of the company's assets and distributes the results to creditors.

Insolvency laws are intended to ensure that creditors receive fair treatment. Through the provision of adequate notice to everyone involved, this goal can be achieved. There are two kinds of creditors: secured and unsecure. Secured creditors are generally the main beneficiaries of outright liquidation. However, non-secured creditors can also benefit.

There are a number of insolvency laws that are in force across the globe. They differ in important ways.

Protecting Social Security Income from creditors

A person with Social Security benefits can file for bankruptcy and shield their earnings from creditors. However, there are some exceptions to this law.

Creditors can garnish your Social Security payments if they get a judgment against someone. It is essential to be aware of what debts can be taken from your account. This could include unpaid child support, alimony that is delinquent as well as unpaid federal tax obligations.

The Social Security Administration can withhold benefits if there is a court judgment for unpaid child support or Alimony. Additionally, the Department of Treasury can withhold Social Security payments if you have outstanding federal tax bills.

Another exception to this rule is the transfer of benefits from one account to another. When you deposit money directly into a benefit account banks are required to protect the funds. But if you move the money to a creditor's account, you'll have to make more efforts to retrieve it back.

Consider hiring a Harrisburg bankruptcy attorney before beginning the bankruptcy before you begin the bankruptcy process. This will allow you to ensure that you have the legal representation and knowledge you need to handle your case.


Citations and other links

How bankruptcy helps people pay their obligations

There are many reasons you might file bankruptcy. It is important to know the options available to you so that you are able to make the right decision for yourself. Here are some important tips to be aware of.

Chapter 7

Chapter 7 bankruptcy is an essential option for people who are facing severe debt. This helps people make a financial turnaround and gives them a fresh start. If you're thinking of making bankruptcy an option, consult an attorney to get help.

It is necessary to go to a credit counseling meeting at a non-profit credit counseling agency before you are able to file. This will help you decide if bankruptcy is the best choice.

There are also certain income requirements and asset requirements. In certain states, you may be able to use an exemption system in the state to keep your properties from being sold to pay off your creditors.

The procedure of filing bankruptcy typically takes between 4 and 6 months. It can however be longer if you need to provide additional documents to the bankruptcy trustee.

Chapter 13

You can file for bankruptcy if you are looking to clear your debt. Chapter 13 is a plan that has been approved by the court which allows you to pay off debts over three or five years. The benefits include a halt to foreclosure proceedings, a chance to make up payments due and also a method to shield your property from being snatched away by lien stripping.

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

In order to reduce the monthly amount you pay you can extend the payment period on secured debts like mortgages. Alternately, you could lower the principal balance on secured loans.

There are also certain guidelines that are applicable in the event of a prior discharge from the course of a Chapter 13 case. It is recommended that you consult an attorney.

Unsecured debt

There are two options when you're in debt to pay it off, or apply for bankruptcy. In the event of filing for bankruptcy, it can allow you to remove debts that are not secured and stop you from accruing any more. You don't have to hire a lawyer to file for bankruptcy. For a start using the tool, try Upsolve an online, free tool.

Credit cards are the most popular form of unsecure debt. They are a good option to pay off debt once it's due, however they're more risky than secured loans.

The interest rates for loan that are not secured are usually more expensive than secured loans. Rates are dependent on the credit score of the person who is borrowing. However, the borrower may improve their rating through timely debt payments.

Certain debts that are not secured, such as medical bills, cannot be discharged through bankruptcy. Instead, you may be capable of negotiating a reduction in balance or a settlement. A debt settlement expert will contact your creditors on your behalf.

Discharged bankruptcy and exempt property

You have the right to exempt certain property from bankruptcy proceedings. This will help you pay your debts. There may be exemptions that vary from one state to the next. If you're not sure of your rights, you should seek advice from an attorney.

The court will choose a trustee to collect non-exempt property and sell the property. The proceeds will be used to repay creditors.

In addition to settling creditors, the bankruptcy trustee will also supervise the repayment program. Most of your property is able to be retained. However, you could lose any other property, if the court directs you to.

Most people who file for bankruptcy are under Chapter 7 because it allows the bankruptcy process to eliminate the majority of their obligations. Although you are able to keep some of your non-exempt property however, creditors will still be able to get it.

Credit effects

While bankruptcy may be a major impact on the credit score of yours, it is not a solution that is quick and easy. It could take years to bring your credit back up to a good level.

The impact of bankruptcy on your credit score is in two different ways. One is that you'll likely see the loss of your credit score in the first year. To ensure the accuracy of your credit report you should have a good idea for you to check your credit report.

In the second, you can begin to work towards rebuilding your credit. You can do this by creating a new budget and making significant lifestyle modifications. You should see a gradual improvement in your credit score if you adhere to these steps.

Secured credit cards are accessible. They are like a regular credit card, but require an additional security deposit. They are also available with without a fee upfront.

These are just suggestions basing on educated guesses. To get accurate information, you can seek advice from professionals in the field. In Harrisburg, PA a bankruptcy attorney will be able to guide you on the legal ramifications of bankruptcy. Before you sign that dotted line, ensure you understand the legal terms.


Harrisburg Bankruptcy Attorney

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

Can you keep your property if you declare bankruptcy?

In bankruptcy, secured debts may be protected

If you have a home mortgage, car loan or other kind of secured debt you may wonder whether you could keep the property in the event that you declare bankruptcy. While the majority of time you can but there are certain exceptions. It is essential to talk with an attorney about your specific situation and consequences of filing.

Secured debt is property which is an obligation on the debt. It is the first thing you need to know about it. It is possible for a lender to repossess your collateral if you do not pay your bills however, they are not able to claim against you in the event of a bankruptcy. Your property can be kept as long as you make regular payments. However you will be unable to use your secured loan cannot be used to pay. If you file the case of a Chapter 13 bankruptcy, you must reaffirm your debt in order to keep your property.

Reaffirm your debts through bankruptcy if you're in debt on mortgage or car payments. This will allow you to have the chance to fix your financial problems and get back on track with your repayment schedule. But, it could allow the creditor to seize your home, which could cause you to lose the value of the property.

Secured creditors may be based on a security arrangement, such as trust or deed, mortgage, or judgment lien. They are able to take your property if not pay your debts and also collect interest and attorneys' fees from your property. It is imperative to pay the debt again after it is repossessed.

You can reduce your expenses by keeping your collateral. However, you have to keep the insurance you would have taken out to secure the purchase, and you must continue to pay your bills. Either negotiate the terms of a new contract, or transfer your collateral. Negotiations are possible and can result in your creditor reducing or extending the time you pay them, or negotiating additional conditions.

Selling your property is another method to stay out of foreclosure. If you're in default on your mortgage, some states permit creditors to seize the equity in your home. Selling your property may be a way to pay your debt in the event of an emergency situation or require the cash.

Reaffirming the debt in Chapter 7 bankruptcy is another alternative. Most debts will be wiped out during bankruptcy, however certain the liens attached to certain secured debts won't be. These liens will remain on your credit report, and will impact your credit score. After filing bankruptcy, it's essential to review your credit report.

Certain debts are able to be paid off but they will be on your credit reports. You must also adhere to a specific timeframe in order to get your debts deleted from credit reports. People often assume they are well-versed in the regulations and rules, but then realize they were wrong. Rules change and are often not explained very well. Make sure you are informed before declaring bankruptcy. While nobody wants to go through this but you must be prepared in case you are forced to.

The bankruptcy process can be complicated. The automatic stay, which is a legal safeguard to stop creditors from taking any further action against you, is a crucial aspect to be aware of. The creditor has the power to stop any collection action, but if you refuse, the creditor might be entitled to request the court to lift 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 is a lot of bankruptcy fraud that is circulating. Sometimes people are manipulated into thinking they're getting help by a bankruptcy attorney, however, they are in deeper financial trouble than they thought. Before signing any legal document, make sure you review the small print.


What You Need To Learn About Bankruptcy

Things to Learn About Bankruptcy

The bankruptcy process is that is used when a person an organization is unable to pay its dues. It usually comes through an order of the court. This is to provide relief to debtors who are unable to repay the debt. There are several points to take into consideration when filing for bankruptcy.

Discharge does not eliminate debt

A discharge in bankruptcy can be an order issued by the court which states that the debtor no longer has personal liability for a particular debt. There are certain criteria that must be met in order to qualify for a discharge. It is important to note that not all debts are able to be resolved through bankruptcy.

Alimony, student loans, as well as child support are some examples of debts that are not dischargeable. These debts must be repaid to the creditor.

A bankruptcy is a legal procedure that permits debtors to reorganize and remove their debts . Additional payments could be required by the court and may extend the time for bankruptcy.

Although bankruptcy could be able of helping to get rid of some debts, there are many exceptions. Some debts aren't automatically erased, including those resulting from fraud or student loans, government-funded debts, and spousal support.

Property exempt from bankruptcy

In the case of a Chapter 7 Bankruptcy, debtors can be exempt from certain items of property. The items could range from furniture to clothing, to computers. The exemptions are determined based on the item's value and less the amount of mortgages and other loans. It is crucial to remember that the rules for exemptions can vary according to the state. Colorado is one example of a state which allows debtors to get exempt farm equipment from taxation up to $25,000 if the equipment is essential to the owner's financial well-being.

Non-exempt property can be sold by a bankruptcy trustee in order to pay creditors. In most cases, this happens at a discount. The trustee is required to pay the extra amount to the owner if the value of the asset is less than the exemption amount. The amount paid is typically equal to the estimated value of the asset value, less fees of the sale.

Liquidation of nonexempt property after bankruptcy

Liquidation of property that is not exempt from taxation is a common part of Chapter 7 bankruptcy. The bankruptcy trustee is responsible to collect and liquidate the assets of the debtor. The trustee distributes the proceeds from the sale of assets that are not exempt to creditors once the debtor has been discharged.

A trustee's decision to liquidate or not liquidate a specific asset is contingent upon a number of elements. The trustee must take into consideration the expense of liquidation and the possibility of having funds in the right amount. They must also decide if it is practical to sell. The asset's value should be weighed.

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

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

Opposition to the discharge of bankruptcy

Your creditors could object to the bankruptcy filings. This is known as an adversary process. The opposing party must demonstrate that there is a reason for an objection.

An objection can be made for a materially inaccurate declaration or for the misuse of funds under a fiduciary responsibility. Creditors can also file an objection due to inability to follow an order of a court. For example, if you didn't supply your tax documents in the manner required by the Bankruptcy Registrar, your LIT could be able to block your discharge.

Debtors can react to objections by asking for a new hearing of the case. Sometimes, the Bankruptcy Registrar will decide that there is no need to take further action. But other times, the trustee will require additional payments.

A debtor who fraudulently transfers title to property may cause an opposition to discharge. Another cause is failure to account for property that was lost in bankruptcy.

Formal events can last for a long time

The long-term strategy of execution is one of the most challenging aspects of a bankruptcy. Although creditors will sometimes fight back, it is not unusual for them to fight back. However, perseverance and patience are essential. The first steps toward debt-free living with the help of a credit counselor or a coach. No matter what the cause, a fresh start is the best option. Making sure you avoid the pitfalls and identify the challenges is crucial. There are many online resources and a helpline that will assist you. If you're the market for a credit counselor, be sure to do the research before you go into the dark side.Seek expert advice from experts if you're in need of. An Harrisburg bankruptcy lawyer is available to answer any questions and help you through the legal process.


What is Bankruptcy?

What exactly is Bankruptcy?

If a person is in a position to settle their debts, they can seek bankruptcy relief. It can be an official proceeding typically imposed through an order from a court.

Chapter 7

Unlike chapter 13 bankruptcy, Chapter 7 allows individuals as well as businesses and non-profit organizations to pay off most debts, as long as they satisfy the criteria for bankruptcy. If you're interested in knowing whether your debt is dischargeable it is best to seek the advice of a bankruptcy lawyer.

The bankruptcy means test is a method to determine your expenses and income as well as assess your ability to repay your debts. It is possible to file a repayment plan with your creditors in some cases. The plan may include the repayment of debts in monthly installments spread over three to five year.

Your trustee may also attempt to recover your property. You may be allowed to keep certain assets based on the circumstances. You may be able to benefit from the federal exclusion system in some states to protect specific property.

The Legal Services Corporation offers free legal aid for bankruptcy. There are also bankruptcy counseling services available. A credit counselor can help determine whether you're qualified to file for bankruptcy and assist you in planning your payments. It is best to consult an expert. A Harrisburg bankruptcy lawyer can help you understand the legalities involved in declaring bankruptcy.

The Bankruptcy Code requires that you file a certificate of financial responsibility to the bankruptcy court. The certificate must show that you have completed a financial management. A profit and loss report might be required. This will permit your attorney to determine whether you're permitted to keep your property.

Chapter 7 is not able to permit the payment of some obligations. These include child support and alimony, as well as loans that are guaranteed by a government unit.

Chapter 7 bankruptcy is a very popular type of bankruptcy. However, there are some drawbacks. While it may give you a fresh start but it's not a fast solution to your financial troubles. Some debts, such as student loans and tax debt can't be discharged under chapter 7.

Chapter 13

Generally the process of filing a Chapter 13 bankruptcy requires the debtor to propose a plan for paying creditors over a three to five-year time. The plan is endorsed by a bankruptcy judge, and the judge is able to alter the plan if necessary. Usually, the debtor's monthly earnings are utilized to decide the repayment plan.

The debtor who fails to make payments may be disqualified from Chapter 13 relief. They may have to convert to Chapter 7 bankruptcy. The debtor cannot make personal or business loans in a Chapter 13 bankruptcy case. You may have to pay certain taxes.

The Trustee needs to be provided with an exact copy of the debtor's income statement as well as evidence of their financial management. They are also required to submit copies of any federal tax returns.

When the plan is complete when the plan is completed, the Trustee will issue an account to the creditors detailing the amount the debtor has owed them. The balance due to the plan will be mentioned in the report. The Trustee may oppose claims that are late. The court will accept the plan, and the claims will be dismissed.

Within 30 days of declaring bankruptcy, the first payment has to be made. The Trustee also needs to be provided with a copy of the invoice from the attorney of the debtor. The debtor might also be able to amend the plan.

The Trustee will send an email to the debtor if they fail to pay their dues. This notice is like an official "stop sign" for the creditor of the debtor. It is against the law for creditors or debt collectors to try to collect the debt.

If a debtor misses multiple payments, they may not be able to make subsequent payments. If a person is unable to pay their bills then the creditor can request the court to allow them to recover the debt. Creditors may be granted permission by the court to take possession of a vehicle.

If a debtor is late with a payment, they should get in touch with an attorney right away. They might be able to alter the repayment plan to cover the missed payments. A bankruptcy judge might be able to change the case to Chapter 7.

Chapter 13 bankruptcy is designed for individuals who are unable to pay their dues. It is a way to protect co-signers and stop foreclosures and repossessions. Ultimately, it can aid a debtor to get back on track and stop future debt from becoming problematic.

The Reasons Consumers Filing for bankruptcy

Reasons Why Consumers Apply for bankruptcy

People who seek bankruptcy often due to a variety of causes. This includes poor financial decisions, medical debts, and home mortgages. Many consumers file for bankruptcy repeatedly, causing an immense amount of stress to their financial position.

Millions of Americans are struggling with medical debt. Unexpected medical bills can quickly escalate into a financial disaster. Patients with less than perfect health are more likely to accrue medical bills.

The United States spends large amounts of money on health care. The United States spends more per capita in health care than any other country. Yet, millions of citizens are uninsured or underinsured, leaving them vulnerable to large medical expenses.

Many Americans live in a state of constant financial hardship. A recent study showed that nearly one in five households could not afford medical treatment. However, fortunately, Congress has passed legislation to help pay for the upfront expenses of healthcare.

The Affordable Care Act has capped out-of-pocket spending. Although this has reduced the amount of medical debt that certain Americans suffer from, others are still struggling to pay for their healthcare.

In addition medical debt collectors are becoming more aggressive. They can sue you, or even take legal actions against you.

Collectors of medical debt will frequently add fees on interest-free debt. You may also see unpaid medical bills in your credit report. Medical bills that are not paid can stay on your credit file for a period of seven years.

The most effective way to manage medical debt is to avoid it. However, if you find yourself in a situation wherein you can't pay the bills, you might have to file for bankruptcy.

One of the most frequent reasons people file for bankruptcy is that they are in medical debt. The Consumer Bankruptcy Project estimates that around half of all bankruptcy debtors include medical expenses in their bankruptcy.

The process of getting a mortgage for your home is a major financial investment. It doesn't matter if you're buying a house by either you or with a partner, you'll need to be aware of all costs. It's not a good idea to have an unpaid mortgage.

When applying for mortgages the most important thing to consider is which type of mortgage is right for you. There are plenty of alternatives available. There are many possibilities.

It is possible to choose a conventional loan that has either a fixed or variable interest rate you can choose the VA loan, or a FHA loan. The loan may be longer or short-term.

The best way to determine what kind of mortgage will best fit your needs is to gather all the pertinent information. This includes the conditions and terms of your loan. A local bankruptcy lawyer will help you understand your options. A Harrisburg lawyer is available to answer any questions you may have.

You should also consider whether you are eligible to receive loans. The VA loan is available to members of the military. A USDA loan may be available to rural residents. Also, you should examine the most trustworthy mortgages.

Getting a mortgage after bankruptcy can be a challenge, but it isn't difficult. You must be prepared to do the work and locate a lender who is willing to work with your situation. First, you'll need to have excellent credit. You'll need to apply for preapproval. The most effective way to do so is to find the lowest price.

Using bankruptcy to stop garnishing wages could be an effective way to pay off the burden of. You can actually recover wages that were garnished within 90 days after filing.

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

There are also laws specific to states regarding how much may be garnished. There are exemptions in certain states for government or medical aid. There are also restrictions on the amount of personal property which can be garnished.

Most states allow people to request a court order to stop garnishment of wages. You need to prove exempt income to request an exemption. You can, for example, claim the benefits of your Social Security benefits to be exempt.

There are many other ways to stop the garnishment of your wages. One way is to use a credit counseling service to negotiate the terms of your payment with your creditors. Although credit counseling services might charge a fee, it could also help you to lower the amount that you have to pay.

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

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

There are a few things you should know about debt collection, regardless of whether you're in bankruptcy or not. This includes the steps to locate the right debt collector and how to obtain your debts discharged.

Discharged debts

Your situation will determine if your debts can be discharged following bankruptcy. The debts you owe must be able to be settled. You might have to sell your vehicle or property to pay your creditors. Your assets and debts will be reviewed by an administrator in bankruptcy who will decide if the debts can or cannot be discharged.

There are many reasons a court may refuse to discharge a debt. One reason for refusing to release a debt is due to the fact that the creditor may have assets hidden from the public eye. In this case, the creditor can demonstrate that the debtor has lied on their loan application.

Because the debtor failed to disclose all their assets, the bankruptcy court didn't release the debt. The court however, adopted the position of the debtor, and said that insufficient funds were available to cover the dues.

The Town took action against the Debtor through an District Court Action and a Compulsory Counterclaim. They also sought to foreclose on municipal lien. The Town also tried to collect the discharged debts using SS 524.

Collection efforts

In the course of bankruptcy it is possible to receive phone calls from creditors. These efforts should be stopped by the law. You are protected by laws both state and federal. You may be able to make a claim against creditors if you are victimized.

The Fair Debt Collection Practices Act (FDCPA) outlines the legal obligations that debt collectors have to follow in order to ensure compliance with law. Additionally the court can also punish a debt collector if they break the law. If a collector is found in violation of the law could be subject to sanctions or even have to pay attorney fees.

Fair Credit Reporting Act (FCRA) assures creditors that accurate information is reported. This is vital, since inaccurate accounts can harm your credit. You should always review your credit report to make sure that you are getting accurate information about your debt.

An automatic stay shields you from collection attempts. It is a court-issued order that will stop creditors from pursuing your credit card.

Discrimination between government units and private


Whatever your situation, whether you're a private company or a governmental one bankruptcy filings prevent you from taking any decisions that are based on the filings. The bankruptcy filings cannot be excluded from any government loan programs. You can still consider them in assessing a job candidate's creditworthiness.

The best way to stay clear of discrimination like this is to educate yourself on the laws and legal pitfalls. You may also need an attorney to help you in your situation. In Harrisburg, PA, a bankruptcy lawyer can help you know which rights you have. This is particularly important if you are an employer operating in multiple jurisdictions. The third circuit was gracious enough to weigh in on an urgent and relevant issue for private sector employers.

The Third Circuit ruled that the bankruptcy law's most widely-known acronym was not a viable option. In other words, you can't subtract bankruptcy expenses from your taxes as well as you can't exempt bankruptcy filers from the government's loan programs, and you can't stop bankruptcy filers from receiving government benefits. The good news is that if you aren't able to file bankruptcy, you cannot bring a lawsuit against a private or governmental employer over discrimination.

Identifying a debt collector

Recognizing a debt collector in bankruptcy isn't easy. Scammers typically claim to be debt collectors for creditors and are searching for quick cash. They might employ a variety of tactics to convince you to settle the debt.

You might require legal assistance if you find yourself in this type of situation. Creditors are liable to be threatened with damages if he or she violates the law. You may also have to reopen your bankruptcy case and request an adversary proceeding. This is a court process that could need you to engage an attorney.

Consult your bankruptcy lawyer if you're unsure whether your debt could be discharged. This could help you to get a fresh beginning. You may be able to negotiate a less expensive settlement with the debt collector.

The bankruptcy discharge decree bans creditors from trying to collect on any debt that is dischargeable. The court may also issue an injunction that stops creditors from harassing and pursuing the discharged debt. This could stop garnishments of wages, car repossession, and foreclosure.