What are the advantages of declaring bankruptcy?

Harrisburg, PA Bankruptcy Attorney

What Are the Benefits of declaring Bankruptcy?

There are a variety of reasons you may declare bankruptcy. One reason is to safeguard your Social Security benefits. The other is to get a fresh start. Most of the times people are forced to declare bankruptcy because they're not able to manage their financial obligations.

Chapter 7

Chapter 7 bankruptcy can help you make a new financial start. It lets you pay off your debts and not affect the assets of others. However, the process can be difficult and may be longer if you have student loan debt or you need to sell your home.

You'll need to attend a credit consultation at least 6 months prior to making a filing. A court trustee will assist you liquidate your assets and respond to questions from creditors.

In addition to that, the Bankruptcy Code includes a means test. The test evaluates your expenses and income. If your income is higher than the state's median, the test assumes you're utilizing it.

Chapter 13

Chapter 13 bankruptcy can be the perfect way to reduce your debts. This will make it simpler to pay bills that are due.

You must prepare a repayment plan before you declare bankruptcy. The plan should outline the amount you'll be paying your creditors over the course of a three to five years. Additionally, you must ensure that you have enough money to cover the installments.

If you are considering declaring bankruptcy, you should look into a credit counseling agency that is not for profit which can offer free guidance. They can also help make an installment plan.

In Chapter 13, the debtor can keep some assets. However, not all types of assets are covered.

Automated Stay

The legal stay, also referred to as the automatic stay, is a legal process that protects debtors against certain creditors. This means that a creditor can't file a lawsuit, or take possession of a debtor's property when the bankruptcy case is open.

While this can be a useful method for debtors who have been harassed, the benefits may be only limited. The duration of an automatic stay is generally determined by the number of filings which were made within a given year.

Certain exceptions could apply. For example, the court can grant relief from an

An automatic stay is granted for a time of a few weeks in the event that the property that is subject to restructuring is not needed.

A creditor may also request relief from the stay. These can include re-enforcing or the collection of debtor's payments or preserving the asset's value.


Liquidation refers to the sale of assets in order for creditors to be compensated. The character of the company will decide if the debtor opts to liquidate their assets or allow another person to do it on behalf. In either scenario, a court appointed trustee takes charge of the business's assets, and then distributes the proceeds to creditors.

The main objective of the Insolvency Law is to make sure that debtors get a fair shake. In the event of a timely notice to all parties, this will be achieved. There are two major categories of creditors - secured and unsecured. Secured creditors are generally the primary beneficiaries of liquidation. However, unsecured creditors too get a benefit.

There are many Insolvency laws in place across the globe. They differ in several crucial aspects.

Social Security Income Protection from Creditors

An individual who receives Social Security benefits may file for bankruptcy in order to protect their earnings from creditors. There are some exceptions to the rule.

A creditor can garnish your Social Security payments if they receive a judgement against a person. It is important to understand the debts that can be taken from your funds. This can include past-due child support, alimony that is delinquent as well as unpaid federal tax obligations.

The Social Security Administration can withhold benefits if you are subject to an unpaid court order for child support or alimony. In addition the Department of Treasury can withhold Social Security payments if you have past-due federal tax bills.

The transfer of benefits from one account into another account is an exception to this rule. If you directly deposit funds into a benefit account, banks must protect them. However, if you transfer the money into the creditor's account, you'll have to make more efforts to retrieve it back.

Consider employing an Harrisburg bankruptcy lawyer prior to beginning the bankruptcy process. This will ensure that you have the right legal advice or representation to go about your case or the goal you're trying to accomplish.


Citations and other links

How Bankruptcy Helps People Pay For Debt

There are many possible reasons that you could decide to file for bankruptcy. It is crucial to know your options and make an informed decision that is right for you. Here are some essential things to keep in mind.

Chapter 7

For those with serious financial debts, Chapter 7 bankruptcy can be an option. It can help people start over financially, while giving them a chance to start over. If you're considering declaring bankruptcy, you should contact an attorney to get help.

Prior to filing for bankruptcy, you'll have to undergo an initial credit counseling session through a credit counseling company. This will tell you if bankruptcy filing is your most suitable option.

In addition, you'll have to meet certain asset and income requirements. You might be able to use the exemptions provided by state laws in certain states to protect your property from being sold to pay your creditors.

The filing process for bankruptcy generally takes between four and six months. However, it can be longer if you need to submit additional documents to the bankruptcy trustee.

Chapter 13

If you're looking for a way to get out of debt, consider declaring bankruptcy. Chapter 13 is a plan that has been approved by the court which allows you to pay off your debt over three or five years. It allows you to stop foreclosure and pay off past payments. Additionally, you can protect your property from being repossessed by people who strip your lien.

A specific repayment plan must be submitted to the court. This will be scrutinized by trustees. You'll be offered many opportunities to make adjustments to your plan.

In order to reduce the monthly amount you pay you can prolong the period of payment on secured debts such as mortgages. Alternately, you could reduce the principal balance of secured loans.

There are rules that apply in the event of a prior discharged in an Chapter 13 case. It is recommended to speak with an attorney.

Unsecured debt

You have two choices if you're in debt to pay it off, or file for bankruptcy. Insolvency filing can aid in eliminating debt that is not secured and prevent you from accruing more. But you do not have to engage an attorney if you do not wish to. You can make use of a no-cost web tool such as Upsolve to begin.

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

Unsecured loans have higher interest rates over secured loans. Rates are determined by the credit score of the person who is borrowing. However, the borrower is able to improve their rating through regular debt payments.

Certain unsecure debts like medical bills, can't be removed through bankruptcy. Instead, you might be capable of negotiating a reduction in balance or a settlement. A specialist in debt settlement may be able to assist you in the negotiation of your creditors.

Exempt property and bankruptcy discharge

You are entitled to exclude certain property from bankruptcy proceedings. This will help you pay off debts. There could be exemptions that differ from one state to another. If you don't understand your rights, you should consult with an attorney.

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

The bankruptcy trustee is responsible for monitoring the repayment plan and make payments to creditors. You can keep most of your possessions. It is possible to lose other property, if the court directs you to.

Many people file for bankruptcy under Chapter 7 because it allows them to get rid of the majority of their obligations. While you may keep some of your non-exempt property but creditors are able to get it.

Effects on credit

The bankruptcy process can have a major negative impact on your credit score but it is not an instant fix. It could take a few years for your credit to get back to its normal state.

Credit scores are affected by bankruptcy in two different ways. One is that you'll probably notice an increase in your credit score during the first year. To ensure the accuracy of your credit report, it is an excellent idea to review your credit report.

There are also steps you can take to boost your credit score. This can be accomplished by making major lifestyle changes and creating an entirely new budget. If you take the proper steps it is possible to see gradual improvements in your credit.

Secured credit cards are offered. They are like a the regular credit card, however they require the deposit of a security. Some are even available for no upfront fee.

These are just tips in this article based on an educated guess. For accurate information, you should seek advice from professionals in the field. In Harrisburg, PA a bankruptcy lawyer can guide you through the legal aspects of bankruptcy. Before you sign that dotted line, make sure you fully understand the legal terms.


Can you retain your property in the event that you file for bankruptcy?

Are you able to retain your property in the event that you file for bankruptcy?

In bankruptcy, secured loans can be protected

If you're a homeowner and have a mortgage or car loan, or another kind of secured debt you might be wondering whether you are able to keep the property if you declare bankruptcy. However, the majority of time the answer is yes however, there are certain exceptions. It is important to speak with an attorney regarding your particular situation and the consequences of filing.

Secured debt is a property that is secured by a lien on the debt. This is the first aspect you should know about it. There is a possibility for a lender to repossess your collateral if you fail to make your payments, but they cannot pursue you if you are in a bankruptcy. You are able to keep your property provided you make regular payments. However the secured loan cannot be used to pay. If you would like to keep the property you own, you'll need to confirm the debt under Chapter 13.

Reaffirm your debts in bankruptcy if you are behind in mortgage or car payment. This will give you an opportunity to resolve your financial problems and return to your repayment plan. However, it will also permit the creditor to take possession of the property, which can result in you losing the value of your property.

Secured creditors may be based on a security arrangement like a deed or trust mortgage, judgment lien. If you fail to make your payments they may acquire possession of the property and collect interest and attorney's fees. Make sure that you make the payment again once it is repossessed.

You can save hundreds of dollars by retaining your collateral. You must retain the insurance you paid to secure the purchase and continue making your payments. Either negotiate the terms of a new contract, or sell your collateral. Negotiations are possible and can result in the creditor reducing or lengthening the time it takes to pay them, or negotiating additional conditions.

Selling your property is a different option to avoid foreclosure. Some states allow creditors to acquire the equity you have in your property, if you're in default on your mortgage. Selling your property may be an option to repay your debt if you are facing an emergency or you need the cash.

Another alternative is to reaffirm the debt during the Chapter 7 bankruptcy. Most debts will be wiped out by bankruptcy, but certain liens associated with some secured debts will not be. These liens will still be on your credit report and they will affect your credit score. After bankruptcy, it's important to review your credit report.

There are some debts that can be cleared however they remain on your credit record. There is also a statute of limitation that requires time for you to get removed from your credit report. Most people think they're familiar with the regulations and rules, only to find that they were wrong. Rules change and are often not explained very well. The best way to stay informed is research before declaring bankruptcy. Although nobody would like to go through the process but you must be prepared should you be forced to.

It is often difficult to understand the bankruptcy process. The automatic stay, which serves as an legal protection to prevent creditors from taking further actions against you, is a crucial fact to keep in mind. The creditor has the power to stop any collection activity and if you don't, the creditor might be able to ask 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's a lot of bankruptcy fraud that is circulating. Sometimes people are manipulated to believe they're being assisted by a bankruptcy attorney, but end up in a much more dire financial situation than they thought. Before signing any legal document, make sure that you have review the specifics.


What You Need To Know About Bankruptcy

What You Need To Be aware of about bankruptcy

Bankruptcy is a legal process used when a person or an organization cannot pay its debts. It is usually imposed by an order of the court. This is to provide relief for debtors who are in a position to not pay the debt. There are a number of points to take into consideration when filing for bankruptcy.

Discharge does not eliminate debt

In bankruptcy, a discharge is an order by the court which states that the debtor has no personal responsibility for a specific debt. To be eligible for a discharge there are certain criteria. Some debts are not removed through bankruptcy.

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

A bankruptcy is a legal procedure which allows debtors to organize and eliminate their debts . The court can also require additional payments and may extend the period of bankruptcy.

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

Property is exempt from bankruptcy

Debtors can exempt certain property from Chapter 7 bankruptcy. They can include items like clothing, furniture, or a computer. The exemptions are determined by the worth of the item without regard to any mortgages or liens. It is crucial to remember that the rules for exemptions can vary according to the state. Colorado is an example of a state which allows debtors to get exempt farm equipment from taxation up to $25,000, provided that the equipment is essential to the owner’s livelihood.

Non-exempt property could be sold through a bankruptcy trustee to pay debtors. In most cases, this happens at a discounted price. When the amount of the property is lower than the exemption value, the trustee pays the amount that is less to the owner. The amount paid is typically equal to the estimated asset value, less the fees of sale.

In bankruptcy, liquidation of property that isn't exempt

Chapter 7 bankruptcy often includes the liquidation of non-exempt assets. The bankruptcy trustee is responsible for collecting and liquidating the assets of the debtor. Following the discharge of the debtor's liabilities, the trustee distributes the proceeds from the sale of the debtor's nonexempt property to the creditors.

The decision of a trustee to liquidate or not liquidate a specific asset is based on a variety of elements. The trustee should consider the cost of liquidation and the likelihood of having sufficient funds available. The trustee has to determine if it is feasible to dispose of the asset. The value of the asset should be weighed.

Follow the advice of the trustee.

If your car is worth more than other assets, it may be a good idea to avoid selling it. It may be difficult to find buyers.

Opposition to bankruptcy discharge

Your creditors could object to your bankruptcy filings. This is known as an adversary proceeding. The opposing party must demonstrate the existence of grounds to raise an objection.

An objection can be filed for a materially false statement or the misappropriation funds under a fiduciary responsibility. A creditor may also file an objection due to failure to comply with the court's order. For example, if you did not submit your tax documentation in accordance with the requirements of the Bankruptcy Registrar, then your LIT may oppose the discharge.

Debtors may respond to objections by asking the court for a new hearing of the case. Sometimes the Registrar of Bankruptcies will decide that there is no need to take further action. In other cases, however the trustee could require additional payments.

An objection to discharge could occur when the debtor has fraudulently transferred title to property. Another cause is inability to record the assets that were lost in bankruptcy.

Procedural proceedings in formal settings can last for a long time.

One of the most difficult aspects of filing for bankruptcy is the long-term plan of execution. Although creditors can fight back, it is not uncommon for them to do so. However, patience and perseverance are key. With the assistance of a credit counselor or debt coach, you can begin the journey to the future that is debt-free. Whatever the reason an opportunity to start over is the most effective option. The trick is avoiding the pitfalls and identifying the stumbling blocks. Luckily, there's a free helpline and online resources that can guide you towards the right direction. If you are looking for credit counsellors be sure to do your research thoroughly and seek advice from professionals if necessary. A Harrisburg bankruptcy lawyer is available to answer any questions you might have and help you through the legal process.


What exactly is Bankruptcy?

What exactly is Bankruptcy?

Generally, when someone can't pay their debts and is unable to pay them, they can seek relief from the debts through bankruptcy. Bankruptcy is a legal proceeding that is often imposed by an order from a court.

Chapter 7

Unlike chapter 13 bankruptcy, Chapter 7 allows individuals as well as businesses and non profit organizations to discharge all debts so long as they meet the bankruptcy means test. If you'd like to determine whether your debt is dischargeable it is best to consult a bankruptcy attorney.

The bankruptcy means test can be used to assess your expenses and income as well as evaluate your ability to pay your debts. You may need to file a repayment plan with your creditors in some circumstances. The repayment plan could involve paying down your obligations in monthly installments over three to five year.

Along with paying your creditors, your trustee might also attempt to recover some of your possessions. It is possible to keep some assets contingent on your circumstances. You could be able to benefit from the federal exclusion system in some states to protect specific property.

You can obtain free bankruptcy legal advice through the Legal Services Corporation. You can also get bankruptcy counseling services. A credit counselor can help determine whether you're qualified to file for bankruptcy and assist you in planning your repayments. It is recommended to get advice from an expert. A Harrisburg bankruptcy attorney can assist you with the legalities involved in declaring bankruptcy.

The Bankruptcy Code requires that you file a certificate of financial responsibility to the bankruptcy court. This document must demonstrate that you have completed a class in financial management. It is also possible to submit the profit and loss report. This will enable your attorney to decide whether you're allowed to retain your home.

Chapter 7 is not able to allow for the discharge of certain obligations. This includes the child support obligation, alimony, and loans backed by a government department.

Chapter 7 bankruptcy is a popular type of bankruptcy however, there are some disadvantages. Although it can provide you with a fresh start but it's not a fast solution to your financial troubles. Some debts, such as tax debt and student loans can't be discharged under chapter 7.

Chapter 13

A Chapter 13 bankruptcy generally requires that the debtor create the creditors a plan to be paid over a period of three to five years. A bankruptcy judge will approve the plan and can modify it if necessary. The repayment program is generally determined by the monthly income of the debtor.

The creditor who fails to pay payments is likely to be barred from Chapter 13 relief. It is possible that they will have to change into Chapter 7 bankruptcy. The debtor cannot make personal or business loans in the Chapter 13 bankruptcy case. You may have to pay certain taxes.

The Trustee has to receive an original copy of the debtor's income statement and evidence of financial management. They also must submit copies of all their late filed federal tax returns.

When the plan is complete, the Trustee will send an account to the creditors stating how much money the debtor has paid to them. The report will also note the balance due in the plan. Late claims will be denied by the Trustee. When the plan is approved by the court the claims will be dismissed.

The first payment must be paid within 30 days of filing bankruptcy. The debtor is also required to supply the Trustee with an attorney's copy of a payment receipt. The debtor could also be able to amend the terms of the agreement.

The Trustee will issue an email to the debtor if they fail to pay their obligations. This notice is a "stop signal" to creditors. It makes it illegal for the debt collectors to to collect the debt.

If a debtor fails to make many payments, they could be unable to make future payments. Creditors can request permission from the court to collect the debt if the debtor is not able to make the payments. Creditors may be granted permission by the court to seize the vehicle.

An attorney should be called immediately if a debtor fails to pay an amount. They may be able to alter the repayment plan to compensate for the late payments. A bankruptcy judge may be able to change the case into Chapter 7.

Chapter 13 bankruptcy is designed to assist people who require help paying their debt. It helps co-signers stay safe and stops repossessions and foreclosures. It can also assist a debtor in getting back on the right track and avoid the future debt from becoming problematic.

Causes for Consumers to File Bankruptcy

There are many reasons why people file bankruptcy.

Many factors contribute to individuals who declare bankruptcy. Poor financial decisions, medical debt or home mortgages are all reasons that people seek bankruptcy. Many consumers file for bankruptcy repeatedly which puts a lot of stress on their financial position.

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

The United States spends a lot of money on health care. The US spends more per capita for health care than any other country. Yet, tens of millions of citizens are uninsured or underinsured, putting them vulnerable to large medical expenses.

Many Americans live from paycheck to paycheck. In fact, a recent study found that nearly five out of five households would not afford needed medical care. However, fortunately, Congress has passed legislation to help with the upfront cost of healthcare.

The Affordable Care Act has capped out-of-pocket spending. This has decreased the burden of medical debt for a few Americans However, others have a difficult time paying for their health insurance.

In addition, the number of medical debt collectors has increased. They could sue you or pursue legal action against you.

Often, medical debt collectors will tack on extra fees on interest-free debt. They may also add unpaid medical bills to your credit report. These accounts remain on your credit report 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 make your payments, bankruptcy may be an option.

Medical debt is one of the main reasons why people file for bankruptcy. According to the Consumer Bankruptcy Project, about 50% of bankruptcy debtors mention medical expenses as the primary reason for contributing to the bankruptcy.

Taking out a home mortgage is a significant financial investment. No matter if you are purchasing a home for your self or with a spouse, you will need to know the total cost. You don't want to end up with a mortgage that isn't affordable.

The most important question to consider before taking out a loan is what type of mortgage is the best for you. There are a variety of choices available. You can

You can choose a traditional loan with an adjustable or fixed interest rate you can choose you can choose a VA loan, or a FHA loan. You can also choose one with a long or short-term.

The best way to determine the type of mortgage that will best fit your needs is to collect all the pertinent details. This includes the terms and conditions of your loan. An experienced bankruptcy attorney in the area will help you understand your options. An Harrisburg lawyer can meet with you to address your concerns.

You should also consider whether you qualify to receive an loan. It is possible that a VA loan may be available to members of the military. A USDA loan is available for rural residents. You'll also want to check out the most reputable mortgages.

Although it can be difficult to obtain a loan after bankruptcy, it is possible. You should be willing to work hard and locate a lender who is willing to deal with your circumstances. In the beginning, you'll need to have a good credit score. This means you'll want to get a preapproval. The best method to accomplish this is to obtain the best price.

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

Different kinds of debts have different laws regarding wage garnishment. Child support and alimony can be garnished at higher rates than taxes. The total amount of wages garnished must not exceed 25 percent of an individual's disposable income.

You can garnish however much you want, depending on the state. Certain states are exempt from medical or government aid. Similarly, there are limitations regarding the amount of money that can be taken from personal property.

Most states allow an individual to apply for an order from a judge to stop wage garnishment. It is necessary to show proof of exempted income to apply for an exemption. For instance, you could apply for the benefits of your Social Security benefits to be exempt.

There are a variety of other ways to stop wage garnishment. Credit counseling services to help you find a payment plan. Although a credit counseling service may charge a fee, it could also help you reduce the amount you pay.


Harrisburg, PA Bankruptcy Lawyer

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

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

There are a few things you need to know about debt collection regardless of whether you're in bankruptcy. It is important to know how to locate an individual who can collect your debt and the process to have your debts paid.

Discharged debts

Whether your debts are dissolved following bankruptcy depends on your circumstances. The debts you have are required to be paid. It is possible to sell your car or house to pay your creditors. Your debts and assets will be scrutinized by an administrator in bankruptcy who will determine if your obligations can be discharged.

A court may refuse to pay a debtor's dues for a variety of reasons. The most common reason is that the creditor is hiding assets. The creditor could demonstrate that the debtor has hidden assets.

In the event that the debtor did not declare all their assets The bankruptcy court was unable to let the debt go. However, the court embraced the position taken by the debtor and stated that there were insufficient funds to pay for the debts.

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

Collection efforts

During the bankruptcy process, you may receive calls from creditors. This should be stopped by the law. You are protected under federal and state law. You could be able to bring a lawsuit against creditors in the event that you have been harassed.

Fair Debt Collection Practices Act, (FDCPA), outlines the legal requirements debt collectors must adhere to in order to be in compliance with the law. Additionally, the court may punish a debt collector if they break the law. Anyone who is found to be in violation of the law could be subject to sanctions or even have to pay attorney costs.

Fair Credit Reporting Act (FCRA) ensures creditors that accurate information is reported. This is vital, because inaccurate information can harm your credit. To ensure you get accurate information on your debt, always verify your credit report.

A stay automatically protects you from any collection efforts. This is a court ruling which will stop creditors collecting your credit card.

Discrimination between government units and private


If you're a private or governmental employer law prohibits you from taking any action that is based on bankruptcy filings. You can't exclude bankruptcy filings from any government loan programs. They can be considered in assessing an applicant's creditworthiness.

It is important to be educated about the law and the pitfalls to avoid discrimination. You might also have an attorney to help you in your situation. If you live in Harrisburg, PA, the bankruptcy lawyer can help you know what your rights are. This is particularly important when you're an employer that operates in several jurisdictions. The third circuit was considerate enough to weigh in on an urgent and relevant matter for private sector employers.

The Third Circuit ruled that the bankruptcy law's most widely-known acronym was not a good idea. This means that bankruptcy can't be deducted from your taxes. You can't exclude bankruptcy applicants from loans offered by government. You can't stop bankruptcy filings from receiving government benefits. The positive side is that, if you aren't able to file bankruptcy, you aren't able to sue a private or governmental employer for discrimination.

Identifying the identity of a debt collector

It can be difficult to identify the debt collectors in bankruptcy. Scammers typically pretend to be debt collectors for creditors and are looking to make a quick payment. They may use a variety of methods to get you to pay the debt.

If you are in this scenario You may need to seek legal counsel. If a creditor violates the law, he or she can be sued for damages. A court proceeding may be necessary to reopen bankruptcy procedures. This court proceeding could require you to hire an attorney.

If you are unsure whether your debt can be discharged, contact your bankruptcy attorney. This will help you gain a new start. You may be able to negotiate a lower settlement agreement with the debt collector.

The bankruptcy discharge decree bans creditors from attempting to collect any dischargeable debt. A judge can also issue an injunction which stops creditors from harassing and pursuing the debt that has been discharged. This will prevent the garnishment of wages and repossessions of cars and foreclosure.