What are the benefits from declaring bankruptcy?

Harrisburg Bankruptcy Attorney

What are the benefits of Declaring Bankruptcy?

There are many reasons you could file for bankruptcy. One reason is to keep your Social Security benefits. Another is to give yourself the most of a new start. Basically, a lot of times people are forced to declare bankruptcy because they are just not able to keep up with their expenses.

Chapter 7

Chapter 7 bankruptcy is a process that allows you to make an opportunity to start over financially. It allows you to discharge your debts, without impacting other people's assets. The process can be difficult and can be longer if student loans are involved or you are required to sell your property.

It is essential to attend a credit counseling session at least six months before making a filing. A court trustee can assist you liquidate assets and address any questions that creditors may have.

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

Chapter 13

Chapter 13 bankruptcy can be a great way to restructure your debts. This can make it easier to pay past due bills.

If you decide to file for bankruptcy, you must create a repayment plan which will be approved by the bankruptcy judge. The plan will define the amount you'll be paying your creditors in the course of a three to five years. You will also have to make sure that you have enough money to cover the payments.

Before making bankruptcy an option, you should look into a nonprofit credit counseling agency who can provide free guidance. They can also help you create the right payment plan.

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

Automatically pause

The legal stay, also referred to as the automatic stay is an legal procedure that protects debtors against certain creditors. It means that creditors is not able to 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 limited. The length of an automatic stay is usually determined by the number of filings which were made within a given year.

There are some exceptions. For example, the judge may grant relief to an

automatic stay for some months, so long as the property in question is not necessary for an effective reorganization.

A creditor can also seek relief from the stay. This could include re-enforcing or the collection of debtor's payments or preserving the asset's value.


Liquidation refers to a procedure in which assets are sold in order to pay off creditors. The character of the company will determine whether the debtor opts to liquidate their assets or have another party perform the process on their behalf. In either case a trustee appointed by a court is in charge of the company's assets and distributes the proceeds to creditors.

Insolvency laws are intended to ensure that creditors receive fair treatment. This is accomplished by giving adequate notice to all parties. There are two primary kinds of creditors: secured and unsecure. Secured creditors are typically the major beneficiaries of outright liquidation. Unsecured creditors, however, are also able to benefit from the process.

There are many insolvency laws in effect around the world. They differ in a few significant ways.

Protecting Social Security Income from creditors

A person who is receiving Social Security benefits may file for bankruptcy to shield their earnings from creditors. There are however exceptions to this rule.

A creditor can garnish your Social Security payments if they receive a judgement against someone. It is crucial to know what debts can be taken out of your savings. This includes past-due child support or delinquent Alimony payments, as well as unpaid federal Taxes.

If you are a victim of a court judgement for child support that is not paid or alimony, then the Social Security Administration may withhold the benefits you receive. In addition, 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 them. However, if the money goes to a creditor's bank account, it'll take more effort to get it back.

It is worth looking into the possibility of hiring an Harrisburg bankruptcy lawyer prior to beginning the bankruptcy process. This will make sure you have the legal support and understanding that you require to manage your case.


Citations and other links

How bankruptcy can help people pay Debt

There are a variety of possible reasons that you could choose to file bankruptcy. It is crucial to know your options and make the best decision for you. Here are some key things to keep in mind.

Chapter 7

For those with serious financial debts, Chapter 7 bankruptcy can be an alternative. This helps people get their finances back on track and allows them to get a new beginning. If you're thinking of declaring bankruptcy, you should contact an attorney to get help.

It is necessary to go to a credit counseling session at an agency for credit counseling that is not profit-based before you are able to file. This will assist you in deciding whether bankruptcy is the most suitable alternative.

There are also certain income requirements and asset requirements. You may be able to use the state exemption system in some states to protect your property from being sold to pay your creditors.

The filing process for bankruptcy typically takes between 4 and 6 months. But, it could take longer if you are required additional documents submitted to the bankruptcy trustee.

Chapter 13

You can file for bankruptcy if you are looking to get rid of your debt. Chapter 13 is a court-approved plan which allows you to pay off debts over a period of three to five years. It allows you to stop foreclosure and pay off past due payment. In addition, you will be able to protect your property from being taken away by people who strip your lien.

A repayment plan that is specific to you must be presented to the court. This will be reviewed by the trustee. There are a variety of options to amend your plan.

To lower your monthly payment, you could extend the payment period for secured debts, such as mortgages. Alternatively, you can reduce the principal balance of a secured loan.

There are certain guidelines that are applicable if you've had a previous discharged in an Chapter 13 case. It is recommended that you consult an attorney.

Unsecured debt

If you are in debt there are two options: paying the debt off or filing for bankruptcy. Filing for bankruptcy will help you eliminate unsecured debt and keep you from accumulating more. However, you don't have to engage an attorney if you do not want to. You can use a free online tool like Upsolve to begin.

Unsecured loans, like credit cards, are the most common type of secured debt. They are a good option to pay off debt once it's due, however they are more risky than secured loans.

Unsecured loans carry higher interest rates than secured loans. Rates are dependent on the credit score of the borrower. The borrower can improve his credit rating by making timely debt payments.

Some unsecured debt, like medical bills, are not erased through bankruptcy. You may be able bargain a reduction of your debt, or even a settlement. A debt settlement specialist can speak to the creditors on your behalf.

Exempt property and bankruptcy discharge

When you file for bankruptcy, you have the option of exempting certain assets. This can help pay your debts. There could be exemptions that differ from one state to the next. It is advised to consult an attorney if you are unsure of your rights.

A trustee appointed by the court will collect non-exempt property, and then sell it. The proceeds are used to repay creditors.

In addition to paying creditors, the bankruptcy trustee also oversees the repayment program. Most of your property can be kept. But you can lose other properties if you violate the court's order.

Most people file for bankruptcy under Chapter 7 because it allows them to get rid of most of their obligations. You are able to keep some exempt property , but creditors may get the property.

Credit effects

While bankruptcy may be a major impact on your credit score, it's not an easy fix. It could take a few years for your credit to return to a healthy level.

Bankruptcy affects your credit score in two different ways. First, you will likely notice a significant drop in your score during the first year. It is a good idea to check your credit report regularly to ensure it's up to date.

The second option is to make steps to improve your credit. It is possible to do this by creating a budget and making significant lifestyle modifications. It is likely that you will see an increase in your credit score if you adhere to these steps.

Secured credit cards are also accessible. These are similar to normal credit cards, but need a deposit of security upfront. Some of these cards are available without any charges upfront.

These are only suggestions based on educated guesses. To get accurate facts, consult with experts in the field. A Harrisburg bankruptcy attorney will be able to advise you about the legalities regarding bankruptcy. Before you sign that dotted line, ensure that you are aware of the definitions.


Can You Remain in Your Home If You File for Bankruptcy?

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

Secured debts can remain during bankruptcy

If you have a home mortgage or car loan, or another kind of secured debt you may wonder if you can keep the property in the event that you file for bankruptcy. While the majority of time you can however, there are certain exceptions. It is important to speak with an attorney regarding your particular situation and the consequences of filing.

The first thing you need to know about secured loans is that it's collateral that acts as secured by a lien. If you do not make payments, a creditor can repossess the collateral. However, they cannot pursue you for bankruptcy. As long as you are paying your debts, you are able to keep your property, but you will not be able to use it to pay the secured debt. If you file the case of a Chapter 13 bankruptcy, you have to renew your debt in order to keep your home.

Reaffirm your debts under bankruptcy if you are behind in mortgage or car payment. This gives you an opportunity to resolve your financial troubles and return to your payment plan. But, it could allow the creditor to seize the property, which can result in you losing the value of your property.

Secured creditors are based on a security arrangement, such as trust or deed or mortgage, or a judgment lien. If you do not make your payments they are able to acquire possession of your property and collect interest and attorney's fees. Once the debt is repossessed, you must reaffirm your payment or the debt will not be discharged.

You can save hundreds of dollars by keeping your collateral. It is important to keep the insurance that you paid to secure your purchase and keep making payments. You can negotiate a new contract with your creditor, or sell your collateral to another. Negotiations are feasible and could result in the creditor reducing or prolonging the period you make payments, or offering different conditions.

Another way to avoid foreclosure is to sell your property. If you're behind on your mortgage, some states permit creditors to seize the equity in your home. Selling your home could be a viable option to pay your debt if you are facing an emergency situation or require the cash.

Another option is to confirm the debt through the form of a Chapter 7 bankruptcy. Although most debts can be discharged in bankruptcy, liens on secured debts aren't. These liens will remain on your credit report, and will impact your credit score. After bankruptcy, it is important to review your credit report.

Certain debts are able to be paid off but remain on your credit report. There is also a statute of limitations that needs time to remove the debt from your credit report. Most people think they're familiar with the regulations and rules, only to discover that they were wrong. Rules change and are often not explained very well. Make sure you are informed before declaring bankruptcy. Although no one would like to go through the process, you should be prepared for the event that you have to.

It is often difficult to comprehend the bankruptcy process. A key point to be aware of is that the automatic stay is a legal safeguard to prevent the creditor from taking further action against you. The debtor is able to stop collecting, however, you can choose not to do so. If the creditor is not satisfied, they might be able to ask 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's a lot bankruptcy fraud that goes around. Some people are taken advantage of in a situation they believe is meant to be helpful but only later discover they're in greater financially trouble than they anticipated. Be sure to read the small print and be sure to understand the terms you are giving up and making a decision to sign before signing any legal document.


Things to know about bankruptcy

Things to Know About Bankruptcy

Bankruptcy is a way to pay off debts not paid. It's usually enforced by an order of the court. It is a way to offer relief for debtors who are unable to repay the debt. There are many points to take into consideration when making bankruptcy an option.

Discharge does not eliminate debt

A discharge is an order by a judge stating that the debtor has been relieved of all personal responsibility for a particular debt. There are certain criteria that must be met in order to be eligible for the discharge. It is essential to know that not all debts can be resolved through bankruptcy.

Student loans, alimony and child support are just a few examples of non-dischargeable debts. All of these debts have to be paid back to the creditor.

A bankruptcy is a legal process that helps debtors to reorganize and get rid of debts. Further payments can be ordered by the court and could extend the bankruptcy period.

Although bankruptcy could be able to help eliminate some debts, there are many exceptions. Some debts cannot be eliminated automatically, like student loans, fraud, government-funded debts and the spousal support.

Bankruptcy exempts property

In a Chapter 7 Bankruptcy, debtors can be exempt from certain objects of property. These items could include furniture, clothing, or a computer. The exemptions are determined by the value of the item minus any liens or mortgages. It is important to note that this policy can differ by state. For example in Colorado the debtor is able to exempt farm equipment up to $25,000 if it is a source of income.

A bankruptcy trustee could also sell non-exempt property to pay creditors. The majority of the time, this is done at a discounted price. When the amount of the property is less than the exemption value, the trustee is required to pay the difference to the owner. The amount paid is usually equal to the value estimated for the asset, minus the costs of the sale.

In bankruptcy liquidation of property which isn't exempt

Liquidation of nonexempt property is a typical component of Chapter 7 bankruptcy. The bankruptcy trustee is responsible for collecting and liquidating assets of the debtor. After the discharge of the debtor's obligations the trustee distributes the proceeds of the sale of nonexempt property belonging to the debtor to the creditors.

The trustee's decision on whether or not liquidate an asset depends on a number of factors. The expense of liquidation as well as the probability that funds will be available should be considered by the trustee. He or she must also consider whether the asset is practical to sell. The value of the asset must be considered.

Follow the advice of the trustee.

If your vehicle is more valuable over other items, it could be wise to not sell it. It may be difficult to find someone to purchase your vehicle.

Opposition to bankruptcy discharge

Your creditors could object to the bankruptcy filings. This is known as an adversary proceeding. The objector must prove that there are grounds for an objection.

An objection can be made for a materially inaccurate declaration or for the misuse of funds in a fiduciary role. A creditor may be able to file an objection for not complying with an order of a court. For instance, if you did not supply your tax documents in the manner required by the Bankruptcy Registrar, then your LIT could oppose your discharge.

Debtors may respond to objections by asking the court to reopen the case. Sometimes, the Bankruptcy Register will not pursue further action. However, sometimes, the trustee may require additional payment.

An objection to discharge could occur when the debtor has fraudulently transferred title to property. Another common reason is a inability to record assets lost during the bankruptcy.

The formal proceedings may last for years.

The long-term plan of execution is among the most difficult aspects of a formal bankruptcy. While it's not unusual for creditors to mount fights, a decent amount of perseverance and patience are required to get through the day. You can make the first steps toward debt-free life with the help of a credit counselor or an advisor. Whatever the reason, a fresh start is the most effective option. The key is to avoid the mistakes and identifying the blocks. Luckily, there's a free helpline and online resources to guide you towards the right direction. If you're in search of credit counsellors ensure that you conduct your research and seek professional guidance from experts if needed. In Harrisburg, PA a bankruptcy attorney will be able to answer your questions and guide you through the legal procedure.


Harrisburg, PA Bankruptcy Attorney

What is Bankruptcy?

What exactly is Bankruptcy?

If someone isn't able to settle their debts, they can seek bankruptcy relief. It is a legal procedure that's usually enforced by the court's order.

Chapter 7

In contrast to chapter 13 bankruptcy, Chapter 7 allows individuals or businesses as well as non profit organizations to discharge most debts, as long as they satisfy the bankruptcy means test. An attorney in bankruptcy can help you determine the possibility of having your debt discharged.

The bankruptcy means test is a way to determine your income and expenses and evaluate your ability to pay your debts. In some cases, you may be required to submit an arrangement for repayment with your creditors. The plan may include the payment of your debts in monthly installments spread over three to five years.

Your trustee could also try to recover your property. It is possible to keep certain assets based on the circumstances. In some states, you may have the option of using the federal exemption system to safeguard the majority of your assets.

You can get free bankruptcy legal advice through the Legal Services Corporation. There are also bankruptcy counseling services available. A credit counselor can assist you to determine whether you're eligible to file bankruptcy and assist you in planning your payments. It is best to consult an experienced. In Harrisburg, a bankruptcy lawyer can assist you navigate the legal aspects of filing for bankruptcy.

The Bankruptcy Code requires that you file a certificate of financial responsibility with the bankruptcy court. The certificate must prove that you have completed a course on financial management. A profit and loss statement could be required. This will allow your attorney to decide if you are allowed to keep your property.

There are many other debts that cannot be discharged under chapter 7. These include child support and the alimony payment, as well as loans guaranteed by a governmental unit.

Chapter 7 bankruptcy is a popular type of bankruptcy however there are some disadvantages. While it may give you a fresh start but it's not a fast solution to your financial troubles. Chapter 7 cannot discharge some debts such as tax debts and student loans.

Chapter 13

The process of filing a Chapter 13 bankruptcy generally requires that the debtor propose an arrangement for creditors to pay over a period of 3 or five years. The plan is approved by a bankruptcy judge and a judge may modify the plan in case it is needed. Usually, the debtor's monthly earnings are used to establish the repayment plan.

If the debtor fails to pay their debts and is not able to pay, they could be denied Chapter 13 relief. They might need to convert into Chapter 7 bankruptcy. If you are in the Chapter 13 case, the debtor is not able to apply for a personal or business loan. The debtor could have to pay certain back taxes.

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

The Trustee is required to send creditors a report detailing how much money the debtor has to pay. The balance due on the plan will be mentioned in the report. The Trustee will also be against late claims. The court will accept the plan and the claims will be dismissed.

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

The Trustee will send an notice to a debtor if they fail to pay their obligations. This notice acts as a "stop signal" to creditors. The notice makes it illegal for the debt collectors to try to collect the debt.

If a debtor is late on multiple payments, they may be unable to make future payments. If a person is unable to make payments, the creditor may ask the court to permit them to recover the debt. The court can also allow the creditor to take possession of a vehicle.

A lawyer should be contacted immediately if a debtor is unable to pay a payment. They may be able to alter the repayment plan to make up for the missed payments. A bankruptcy judge might be able to change the case to Chapter 7.

Chapter 13 bankruptcy is designed to assist people who require assistance with paying their debts. It is a way to protect co-signers and prevent repossessions and foreclosures. In the end, it will help a debtor get back on the right track and avoid future debts from becoming a problem.

The Reasons Consumers File Bankruptcy

The Reasons Consumers Apply for bankruptcy

People who file for bankruptcy are typically due to a range of reasons. They are a result of poor financial choices, medical debt, and mortgages on homes. A lot of consumers also file multiple times which puts a lot of stress on their financial situation.

Having medical debt is a huge issue for millions of Americans. Unexpected medical bills can quickly escalate into a financial disaster. People with less than ideal health are more likely to accrue medical expenses.

The United States spends a lot of money on health medical care. The United States invests more per capita in health care than any other. However there are tens of million of uninsured and underinsured people, making them susceptible to costly medical costs.

A lot of Americans live paycheck to paycheck. In fact, a recent study found that nearly five out of five households would not afford needed medical care. Congress approved legislation to lower the initial cost of healthcare.

The Affordable Care Act has capped the amount of money you can spend out of pocket. While this has helped reduce the amount of medical debt that some Americans suffer from, others have difficulty to pay for healthcare.

In addition, medical debt collectors have become more aggressive. They could sue you or take legal action against you.

Collectors of medical debt typically add charges on interest-free debt. There are also instances of unpaid medical bills added to your credit score. Medical bills that are not paid can be on your credit report for up to seven years.

Avoiding medical debt is the best way to handle it. If you find yourself in a position where you cannot pay the bills, you might require filing for bankruptcy.

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

The process of getting a mortgage for your home is a big financial commitment. Regardless of whether you're buying an apartment by yourself or with a partner you'll need to ensure you're aware of all the expenses. It's not a good idea to be left with an unpaid mortgage.

The most important question to think about before you take out a mortgage is what kind of mortgage is right for you. There are plenty of options out there. There are many options available to you.

You can pick a traditional loan that has either a fixed or adjustable interest rate or the VA loan or an FHA loan. The loan may be longer or short-term.

The best way to figure out the type of mortgage that will best suit you is to gather all the pertinent details. This includes the terms and conditions of the loan. An experienced bankruptcy attorney in the area will help you understand the options available. In Harrisburg, PA a bankruptcy attorney can meet with you and address any questions.

There are other things to consider, including whether or not you're eligible for loans. It is possible that a VA loan is available to members of the military. A USDA loan is available for rural residents. Also, make sure to find the most suitable mortgage.

Although it's not easy to obtain a loan after bankruptcy, it's not impossible. If you're willing to put in the work it should be possible to find a lender who is willing to collaborate with you. But first you'll have to be in good credit. You will need to submit a preapproval application. The most effective way to achieve this is to find the lowest price.

The filing of a bankruptcy will help stop the garnishment of wages. It is possible to recover the wages garnished within 90-days after filing.

Wage-garnishment laws are different for different kinds of debt. Child support and alimony can be garnished at higher rates than taxes. The amount of wages garnished should not exceed 25% of an individual’s disposable income.

You can garnish however much you want according to the state. Some states have exemptions for government assistance or medical aid. There are also restrictions regarding the amount of money that can be garnished from personal property.

Most states allow people to request a court order to stop garnishment of wages. To apply for an exemption, you need be able to prove that you earn exempted income. For example, you can claim your Social Security benefits as an exemption.

There are many other options to stop wage garnishment. One way is to use credit counseling services to negotiate an arrangement for payment with your creditors. Although credit counseling services might charge a fee, it may also be able to help reduce the amount you have to pay.

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

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

In bankruptcy or not you are, there are a few things that you should know regarding debt collection. This includes the steps to locate a debt collector and how to obtain your debts discharged.

Discharged debts

The amount of debt that is dissolved following bankruptcy depends on the circumstances. You must be able pay the debts. It is possible to sell your vehicle or home to pay off your creditors. The bankruptcy trustee will review your assets and liabilities and decide whether your debts are dischargeable.

There are many reasons why a judge will not discharge a debt. One reason why a court won't discharge a debt is because the creditor might have assets hidden from the public eye. In this case the creditor has the ability to demonstrate that the debtor has lied when they applied for a loan.

The bankruptcy court could not release the debt due to the fact that the debtor did not disclose all of their assets. However, the court embraced the position of the debtor declaring that there were not enough funds to pay the charges.

The Town went after the debtor in a District Court Action and a Compulsory Counterclaim. They also tried to seize municipal liens. The Town also attempted to collect discharged debts through SS 524.

Collection efforts

You might be contacted by creditors in bankruptcy procedures. It is best to stop them. You are protected under the law of both states and federal. If you are being harassed and abused, you may be able to make a argument to file a lawsuit against the creditors.

Fair Debt Collection Practices Act, (FDCPA), outlines the legal requirements debt collectors must comply with to ensure compliance with law. Additionally, the court may sanction a debt collector if they violate the law. If a debtor is caught in violation of the law, the collector may be fined or be required to pay attorney's fees.

The Fair Credit Reporting Act (FCRA) assures creditors that they report exact details. This is essential, since inaccurate information can harm your credit. To ensure that you have accurate information about your debt, you should always review your credit report.

An automatic stay shields you from collection attempts. This is a court ruling which will stop creditors trying to collect your credit card.

Discrimination between governmental units, and private


No matter if you're an employer in the private or public sector the laws of the land prohibit you from making any decision that is based on bankruptcy filings. Additionally, you aren't able to disqualify bankruptcy filers from federal loan programs. It is still possible to consider them in assessing a job candidate's creditworthiness.

The best way to avoid discrimination like this is to educate yourself on the laws and legal pitfalls. Additionally, you might also want to hire an attorney to assist in your case. If you live in Harrisburg, PA, the bankruptcy lawyer will help you understand which rights you have. This is particularly important if you are an employer with operations in multiple jurisdictions. The third circuit was considerate enough to take a stand on an important and timely matter for private sector employers.

Specifically specifically, specifically, Third Circuit found the Bankruptcy Act's most famous acronym to be a non-starter. It means that bankruptcy isn't able to be deducted from your tax bill. You can't exclude bankruptcy filers from government loan programs. You can't stop bankruptcy filings from receiving government benefits. The good news is that even if you aren't able to file bankruptcy, you cannot sue a private or governmental employer for discrimination.

Identifying the debt collector

Identifying a debt collector after bankruptcy can be difficult. Fraudsters often claim to be debt collectors for creditors, and are looking to make a quick payment. They might employ a variety of methods to get you to settle the amount owed.

It is possible to seek legal advice when you are in this type of situation. If a creditor violates the law, he or could be sued for damages. A court proceeding may be required to reopen bankruptcy procedures. This court proceeding may need you to employ a lawyer.

Contact your bankruptcy attorney to determine if your debt can be discharged. This could help you to gain a new beginning. You may be able to negotiate a lower settlement agreement with your debt collector.

The bankruptcy discharge order bans creditors from attempting to collect any debt that is dischargeable. The court may also issue an order that prevents creditors from contacting and pursuing the debt that has been discharged. This can help stop wage garnishments or repossession of cars, as well as foreclosure.