What are the advantages from declaring bankruptcy?

Harrisburg, PA Bankruptcy Lawyer

What are the benefits of Declaring Bankruptcy?

There are many reasons to file bankruptcy. One of them is to protect your Social Security benefits. Another is to have a fresh start. Basically, a lot of instances, people are forced to declare bankruptcy because they're not able to keep up with their financial obligations.

Chapter 7

Chapter 7 bankruptcy can help you get a fresh financial beginning. It allows you to discharge your debts and not affect the assets of others. This process isn't easy and may be longer when student loans are involved or you are required to sell your property.

A credit counseling session should be scheduled at minimum six months before filing. A court trustee will assist you liquidate your assets and respond to any questions that creditors may have.

Furthermore, the Bankruptcy Code includes a means test. It is a screening mechanism that measures your income and expenditures. The test presumptively assumes that you are abusing the system when your income is greater than the median income for your state.

Chapter 13

A Chapter 13 bankruptcy is an efficient way to reduce debt. This can make it easier to pay bills that are due.

You should prepare a repayment plan before you file for bankruptcy. The plan will outline the amount you'll pay back to your creditors over three or five years. It is also important to make sure that you earn enough to cover the repayments.

You should consider contacting a non-profit credit counseling agency before filing bankruptcy. They are able to offer no-cost advice. It is also possible to get help in putting together a payment plan.

In Chapter 13, the debtor may retain certain assets. However, not all types of assets are covered.

Automatic stay

The automatic stay, sometimes referred to as the statute of limitations is an legal procedure that is designed to shield debtors from certain creditors. This means that creditors is not able to file a lawsuit or foreclose on a debtor's property when the bankruptcy case is in the process of being filed.

While it is a powerful method for debtors who have been harassed, the benefits may be limited. The length of an automatic stay is typically determined by the number of filings which were filed within a particular year.

Certain exceptions could apply. There are exceptions.

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

In the same way, creditors can ask for relief from the stay of execution for a variety of reasons. This includes re-enforcing a lien, collecting payments from a debtor, or preserving the value of an asset.


Liquidation is the process of selling of assets in order to allow creditors to be compensated. Depending on the nature of the company the debtor could choose to liquidate their own property or let an uninvolved third party perform the process on behalf of the debtor. A court appointed trustee is appointed to take control of the assets belonging to the business and then distribute the profits to creditors.

The primary goal of the Insolvency Law is to guarantee that debtors get a fair shake. By giving adequate notice to all parties, this can be accomplished. There are two primary kinds of creditors: secured and unsecured. In general, outright liquidation helps secured creditors more than creditors who are unsecured. Non-secured creditors receive the same benefits.

There are many insolvency laws around the globe. These differ in some significant ways.

Social Security Income Protection from Creditors

A person with Social Security benefits can file for bankruptcy to protect their earnings from creditors. However, there are exceptions to this rule.

If a lender gets a judgment against you, they may garnish your Social Security payments. It is important to be aware of the types of debt that can be taken out of your funds. This could include unpaid child support, delinquent alimony, and unpaid federal taxes.

If you're a victim of a judgement from a judge for unpaid child support or alimony, then the Social Security Administration may withhold your benefits. The Department of Treasury may also suspend Social Security payments for past-due federal taxes.

A different exception to the rule is when you transfer funds from one account to the other. When you deposit funds directly into a benefit bank account, banks have to safeguard them. But, if the cash goes to a bank account of a creditor's account, it will take longer to retrieve it back.

You might want to think about the possibility of hiring an Harrisburg bankruptcy attorney Before you start the bankruptcy process, you must be sure that you are prepared. This will make sure that you are provided with the correct legal advice or representation to go about your case or what you are trying to accomplish.


Citations and other links

How Bankruptcy Helps People Pay the debt

There are a number of possible reasons that you could opt to file for bankruptcy. It is important to know the various options available so that you can make the best decision for your own needs. Here are some essential points to remember.

Chapter 7

Chapter 7 bankruptcy is an essential option for people who are facing significant debt. It allows individuals to get their finances back on track and allows them to get a new start. If you're thinking of declaring bankruptcy, you should contact an attorney for help.

You must attend a credit counseling session with a non-profit credit counseling agency before you are able to file. This will help you decide if bankruptcy is the best choice.

In addition, you'll have to satisfy certain income and asset requirements. In certain states, you can use the state exemption system to protect your property from being sold to pay your creditors.

The process of filing bankruptcy typically takes between 4 and 6 months. It could take longer if additional papers are required by the bankruptcy trustee.

Chapter 13

You may file bankruptcy if you are looking to get rid of your debt. Chapter 13 is a legal plan that helps you pay back your debts in three to five-year periods. It allows you to stop foreclosure and make up the missed due payment. In addition, you will be able to safeguard your home from being repossessed by people who strip your lien.

A repayment plan that is specific to you must be submitted to the court. The plan is then examined by the trustee. You'll be offered many opportunities to make adjustments to the plan.

For example, you can extend your payment plan on secured debts, such as a home mortgage, to lower your monthly payment. Alternately, you could reduce the principal balance on a secured loan.

If you have been discharged in the course of a Chapter 13 case, there are certain guidelines. However, it's best to check with an attorney.

Unsecured debt

You have two choices if you're in debt either pay it off or apply for bankruptcy. In the event of filing for bankruptcy, it can allow you to get rid of unsecured debt and also stop the accumulation of more. It is not necessary to employ a lawyer to file for bankruptcy. To begin, you can use Upsolve, a free online tool.

Credit cards are the most popular type of secured debt. Although they can be an ideal option to pay off debt, they can also be more risky than secured loans.

Unsecured loans carry higher rates of interest than secured loans. Rates are dependent on the credit score of the borrower. However, the borrower may enhance their credit rating by making timely debt payments.

Certain debts that are not secured, such as medical bills, are not eliminated by filing bankruptcy. Instead, you might be able to negotiate a reduced amount or settle. A debt settlement professional can speak to your creditors on your behalf.

Property exempt from bankruptcy and discharge

If you declare bankruptcy, you are entitled to the right to exclude certain property. This allows you to pay off debts. Exemptions may vary from state to state. If you don't understand your rights, you should seek advice from an attorney.

The court will appoint an administrator to collect non-exempt property, then sell it. The proceeds will then be used to pay creditors.

The bankruptcy trustee will oversee the repayment plan and pay the creditors. The majority of your assets can be kept. But you may lose other property if you violate a court order.

Chapter 7 bankruptcy is the most popular because it allows people to eliminate their majority of debts. You can retain some exempt property but creditors may get it.

Effects of credit

The bankruptcy process can have a major negative impact on your credit score however, it's not a quick fix. It could take years to get your credit back to a healthy level.

Bankruptcy affects your credit score in two different ways. The first is that you could notice a significant decrease in your credit score in the first year. It's a good idea to review your credit report often to ensure that it is correct.

There are also steps you can take to improve your credit score. It is possible to do this by establishing a new budget and making big lifestyle modifications. It is likely that you will see an improvement in your credit score if follow these steps.

It is also possible to try secured credit cards. They are like a traditional credit cards, but require a security deposit. Some are even available for no up-front fee.

These are just suggestions that are based on guesses made by experts. For precise information, you should get advice from experts who are experts in this field. An Harrisburg bankruptcy lawyer will be able to provide you with the legal aspects surrounding bankruptcy. Making sure you understand everything before you sign your name on the signature line.


Can You Keep Your Property If You File for Bankruptcy?

Can you keep your property even if you declare bankruptcy?

In bankruptcy, secured debts can be kept

You may be wondering if you are allowed to keep your home, car loan, or other secured debt when bankruptcy is filed. While the majority of the time, yes but there are some exceptions to the rule. It is recommended to discuss your specific situation with an attorney and be aware of the implications of filing.

Secured debt is a property that is a lien on the debt. This is the very first thing you need to know about it. It is possible for a creditor to take possession of your collateral if you do not pay your bills however, they are not able to claim against you in the event of a bankruptcy. If you're making payments, you can keep the property, however you won't be in a position to use it to pay your secured loan. If you want to keep your home, you'll have to reaffirm the debt under Chapter 13.

If you're in debt on your mortgage or car payments, you will need to reinstate the debt in your bankruptcy. This will allow you to have the opportunity to address your financial issues and get back on track with your payment plan. But, it could allow the creditor to seize your property, which will result in the loss of value of the property.

Secured creditors are built on a security agreement that includes trust or deed mortgage, judgment lien. They can repossess your property if not pay the debt and can also take interest and attorney's fees from your property. It is imperative to make the payment again once the property is taken.

You could reduce your expenses by holding your collateral. It is important to keep the insurance you paid to secure the purchase and continue making your payments. You can either negotiate a new contract or transfer your collateral. Negotiations may be fruitful, with the result of an increase in your debt from a creditor or extending the period of time for payment, or offering additional terms.

Selling your property is another method to stay out of foreclosure. Some states allow creditors to acquire the equity you have in your home, in the event that you're behind in your mortgage. Selling your home could be a way to pay your debt if you are facing an emergency situation or require the money.

Another alternative is to reaffirm the debt during the form of a Chapter 7 bankruptcy. While most debts can be discharged in bankruptcy, liens attached to secured debts won't. These liens will remain on your credit report, and they can affect your credit score. Therefore, you should be sure to check your credit score after the bankruptcy filing.

There are some loans that can be repaid however they remain on your credit record. There is also a statute of limitation that needs time to remove the debt from your credit history. Many people believe they are well-versed in the rules and regulations, only to find that they were wrong. Rules are subject to change and at times, they're not easily understood. Do your research before you declare bankruptcy. Although no one would like to go through the process however, you should be ready in case you are forced to.

It is often difficult to comprehend the bankruptcy process. The automatic stay, which serves as an legal protection to prevent creditors from taking further actions against you, is an important fact to keep in mind. The debtor is entitled to stop any collection action, but if you refuse the creditor may 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 are a myriad of instances of bankruptcy fraud. People are sometimes caught up in a scenario that they assume is supposed to be beneficial, only to discover that they are in more financially trouble than they anticipated. Make sure you read any small print and be sure to understand the implications of what you are giving up and making a decision to sign before signing any legal document.


Harrisburg Bankruptcy Lawyer

What You Should Be aware of about bankruptcy

What You Should Be aware of about bankruptcy

The bankruptcy process is which is utilized when a person or an entity cannot pay its obligations. It's usually imposed through an order of the court and is designed to offer relief to the debtors as they are no longer able to pay off the debt. There are a number of points to take into consideration when filing for bankruptcy.

Discharge does not eliminate debt

A discharge in bankruptcy is an order issued by the court which states that the debtor is no longer liable for personal liability for a particular debt. In order to be eligible for a discharge, there are a few requirements. Certain debts cannot be eliminated through bankruptcy.

Certain non-dischargeable debts are student loans, alimony, child support, and spousal support. These debts must be repaid to the creditor.

A bankruptcy is a legal procedure which allows debtors to organize and eliminate debts. Further payments can be ordered by the court and may extend the bankruptcy period.

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

Bankruptcy exempts property

Debtors are permitted to exempt certain assets from Chapter 7 bankruptcy. This could be clothing, furniture, or a computer. The exemptions are determined by the value of the item and less any mortgages or other loans. This rules can differ from one state to another. For example in Colorado the debtor is able to exempt farm equipment for up to $25,000 provided that it is a source of livelihood.

Non-exempt property can be offered for sale through a bankruptcy trustee in order to pay creditors. In most cases, this happens at a discounted price. If the value of the property is lower than the exemption amount, the trustee pays the amount that is less to the owner. The amount paid is usually the same as the value estimated for the asset, minus the fees of selling the asset.

In bankruptcy, liquidation of property that is not exempt

The liquidation of nonexempt assets is a typical part of Chapter 7 bankruptcy. The bankruptcy trustee is responsible for collecting and liquidating the debtor's assets. The trustee will distribute the proceeds of the sale of non-exempt assets to creditors after the debtor has been discharged.

The trustee has to take into consideration a range of factors before deciding whether to liquidate the asset or not. The trustee should take into consideration the expense of liquidation and the possibility of having sufficient funds available. The trustee should determine if it is possible to sell the asset. The asset's worth is to be assessed.

to comment on the trustee's decision.

If, for instance, you own a luxury vehicle that is worth more than the value of other belongings, you might not want to dispose of it. It might be difficult to find a buyer to buy the car.

Opposition to the discharge of bankruptcy

Your creditors could object to your bankruptcy filings. This is called an adversary proceeding. This is referred to as an adversary proceeding.

An objection may be filed for a materially false statement or the misappropriation funds under a fiduciary responsibility. A creditor can be able to file an objection for not complying with an order of a court. For example, if you didn't supply your tax documents as required by the Bankruptcy Registrar, then your LIT could challenge your discharge.

Debtors can respond to opposition by asking the court for a reopening of the case. Sometimes, the bankruptcy register will not pursue further actions. In other cases, however, the trustee may need to make additional payments.

A discharge objection could occur if the debtor fraudulently transferred title to property. Inability to count the assets that were lost in bankruptcy is another common reason.

Formal proceedings can be long-lasting

One of the most challenging aspects of a bankruptcy is the long term plan of implementation. While it's not unusual for creditors to put up a fight, a fair amount of perseverance and patience are required to get through the day. 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 most effective option. Avoiding the pitfalls and identifying the challenges is crucial. There's a no-cost helpline and online resources to help you navigate towards the right direction. So, if you're in the market for a credit card counselor make sure you do your research and avoid going to the dark side.Seek expert advice from experts if you need. In Harrisburg, PA a bankruptcy lawyer can answer your questions and help with the legal procedure.


What exactly is Bankruptcy?

What is Bankruptcy?

Generally, when someone can't pay off his or her debts then they are able to get relief from their debts via bankruptcy. It can be a legal process that is typically imposed through a court order.

Chapter 7

In contrast to chapter 13 bankruptcy, Chapter 7 allows individuals or businesses as well as non profit organizations to discharge all debts so long as they meet the criteria for bankruptcy. If you want to know whether your debt can be discharged then you must consult with a bankruptcy attorney.

The test of bankruptcy is determining your income and expenses, and whether you have enough resources to repay your debts. It may be necessary to file a repayment plan with your creditors in certain cases. The plan may include the payment of your debts in monthly installments over three to five years.

Your trustee might also try to recover your property. You may be allowed to keep certain assets based on your situation. In some states, you might have the option of using the federal exemption system to secure the majority of your assets.

The Legal Services Corporation offers free legal aid for bankruptcy. There are bankruptcy counseling services also available. Credit counselors can help determine if you are eligible to file bankruptcy and help you plan your payments. A professional is the best representation. An Harrisburg bankruptcy attorney can assist you with the legalities of declaring bankruptcy.

According to the Bankruptcy Code, you must file a certificate proving that you are financially responsible with the bankruptcy court. This document must demonstrate that you've completed a program on financial management. A profit and loss statement may be required. This will help your lawyer determine if you have the right to keep your property.

There are also several debts that are not dischargeable under chapter 7. This includes child support, alimony and loans guaranteed by a government agency.

Chapter 7 bankruptcy is a typical type of bankruptcy however, there are some disadvantages. While it may give you an opportunity to start over, it isn't a quick solution to your financial woes. Chapter 7 won't be able to discharge certain financial obligations, such as tax debts and student loans.

Chapter 13

Generally, the process of filing a Chapter 13 bankruptcy requires the debtor to come up with an arrangement to pay the creditors over a three to five year time. The plan is then approved by a bankruptcy judge and the judge is able to amend the plan as needed. In most cases, the debtor's monthly earnings are used to determine the repayment plan.

The creditor who fails to make payments is likely to be barred from Chapter 13 relief. They might need to change into Chapter 7 bankruptcy. If you are in Chapter 13 cases, Chapter 13 case, the debtor cannot obtain a personal or business loan. The debtor could be required to pay certain back taxes.

The debtor must provide the Trustee with an income statement as well as proof of their financial management. They must also submit copies of any late-filed federal tax returns.

Once the plan is completed when the plan is completed, the Trustee will issue an update to creditors stating how much money the debtor has given them. The remaining balance to the plan will also be mentioned in the report. The Trustee may oppose claims that are late. The court will then approve the plan and the claims are dismissed.

The first payment must be made within 30 days after filing bankruptcy. The Trustee must also be provided with an original invoice from the debtor's attorney. The debtor may be able amend the plan.

If a debtor misses a payment and the Trustee is not able to make a payment, they will send them a notification. This notice is an "stop sign" for creditors. The notice prohibits debt collectors to attempt to collect the debt.

A debtor who fails to make multiple payments may become ineligible to make future payments. If a person is unable to make the payments and the creditor is unable to collect, they can ask the court to permit them to collect the debt. Creditors may be granted permission by the court to seize a vehicle.

If a debtor is late with the payment, they must contact an attorney immediately. They might be able to alter the repayment plan to make up the missing payments. A bankruptcy judge might be able to convert the case into Chapter 7.

Chapter 13 bankruptcy is designed to help those who aren't able to pay their obligations. It protects co-signers and stops repossessions and foreclosures. It is a great tool to aid debtors in getting on the right path and avoid future problems.

Reasons Why Consumers File Bankruptcy

Reasons why consumers file bankruptcy

A variety of factors can be responsible for individuals having to file for bankruptcy. This includes poor financial choices, medical debt and home mortgages. A lot of consumers also file multiple times, causing a lot of stress on their financial position.

Millions of Americans struggle with medical debt. Unexpected medical bills can quickly escalate into a financial disaster. People who are in poor health tend to have higher chances of accumulating medical expenses.

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

A lot of Americans live in a state of constant financial hardship. A recent study found that over one-fifth of households in America are unable to afford essential medical expenses. Congress adopted legislation to cut the initial cost of healthcare.

The Affordable Health Care Act, which was passed in 2010, capped out of pocket spending. This has reduced the cost of medical debt for some Americans However, others struggle to pay for their healthcare.

Additionally, the number of medical debt collectors has risen. They can sue you, or pursue legal actions against you.

Collectors of medical debt will typically add charges to interest-free debt. They can also make medical debts that have not been paid appear on your credit score. The debts will remain on your credit report for seven years.

Refraining from medical debt is the best way to handle it. However, if you find yourself in a position where you cannot pay the bills, you may have to file for bankruptcy.

Medical debt is one of the most common reasons people file for bankruptcy. According to the Consumer Bankruptcy Project, about half of bankruptcy debtors point to medical expenses as a contributor to the bankruptcy.

Taking out a home mortgage is a significant financial investment. If you're looking to purchase an apartment by yourself or with a spouse, it's important to make sure you're aware of all the expenses. It's not a good idea to be stuck with a mortgage you can't afford.

When applying for mortgages, the most important question is which kind of mortgage is right for you. There are many choices. There are many possibilities.

You can choose a traditional loan with either a fixed or variable interest rate you can choose you can choose a VA loan, or a FHA loan. A loan could be short-term or long-term.

The best way to determine what kind of mortgage will best fit your needs is to gather all the pertinent details. This includes details about the terms and conditions for your loan. A bankruptcy lawyer in your area will help you understand your options. A Harrisburg lawyer will meet with you to address your concerns.

You should also consider whether you are eligible for loans. It is possible that a VA loan may be available to service members. If you live in a rural area you might be able to qualify for an USDA loan. You'll also want to look into the most reliable mortgages.

Although it's not easy to secure a mortgage following bankruptcy, it's not impossible. You should be willing to do the work and find a lender that will work with your situation. First, you will need to have excellent credit. This means you'll want to apply for an initial preapproval. And the best way to achieve this is to get the most competitive rate.

Using bankruptcy to stop garnishing wages may be an effective way to pay off the burden of. In reality, you could even get back the wages you were able to garnish within 90 days after filing.

The laws regarding wage garnishment differ for different kinds of debt. Child support and alimony may be garnished with higher amounts than taxes. The amount of the wages garnished must not be more than 25% of an individual's disposable income.

There are also state-specific laws regarding the amount that can be garnished. There are exemptions in some states for medical or government aid. Additionally, there are restrictions on the amount that can be taken out of personal property.

The majority of states permit an individual to apply for an order from the court to stop wage garnishment. You need to prove exempted income to apply for an exemption. For instance, you could apply for your Social Security benefits to be exempt.

There are many other options to stop wage garnishment. You can use credit counseling services to assist you negotiate the payment plan. Credit counseling services may charge you an amount for its services. However, it might also be able to reduce the amount you must pay.

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

Bankruptcy and Collections: Do You Have to Pay back debts after bankruptcy?

There are some aspects you should know about debt collection regardless of whether or not you're in bankruptcy. This includes how to find the right debt collector and how to get your debts discharged.

Discharged debts

If your debts are discharged after bankruptcy will depend on your situation. The debts you owe need to be paid. You may have to sell your car or home to pay off your creditors. Your assets and debts are reviewed by the bankruptcy trustee, who will determine if your debts can or cannot be discharged.

A court may refuse to discharge a creditor's debt because of a variety of reasons. One of the most frequent reasons is that the creditor has hidden assets. The creditor can be able to prove that the debtor is carrying hidden assets.

In the event that the debtor did not disclose all their assets and assets, the bankruptcy court did not let the debt go. However, the court embraced the position of the debtor, stating that there were insufficient funds to cover the charges.

The Town took action against the Debtor in the form of 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

During the bankruptcy process, you may receive collection calls from your creditors. This must be stopped. You are covered by federal and state law. If you're subjected to harassment, 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 adhere to in order to be in compliance with the law. Furthermore the court can also penalize a debt collector in the event that they break the law. If a creditor is caught in violation of the law, they could face fines or have to pay attorney's fees.

The Fair Credit Reporting Act (FCRA) ensures that creditors provide exact details. This is crucial, as incorrect accounts could damage your credit. To ensure accurate information regarding your debts, always review your credit report.

A stay automatically protects you from collection attempts. It is a court-issued order which will stop creditors collecting your dues.

Discrimination between governmental units, and private


No matter if you're a private or governmental employer the law of the land prohibits you from making any decision in a bankruptcy proceeding. Besides, you can't disqualify bankruptcy filers from loans offered by the government. However, you may look into them when evaluating a job applicant's credit worthiness.

It is recommended to be educated about the law and its dangers to prevent discrimination. You may also need to have a lawyer assist you in your case. If you live in Harrisburg, PA, an attorney for bankruptcy will help you understand what your rights are. This is especially true for businesses that operate in multiple locations. The third circuit was kind enough to tackle the issue in a timely manner and is relevant for private sector employers.

Specifically, specifically, Third Circuit found the Bankruptcy Act's most well-known acronym to be an unstarter. It means that bankruptcy isn't able to be deducted from taxes. The bankruptcy law doesn't allow people from loan programs run by the government. And you can't refuse bankruptcy filings benefits from the government. The good news is that if you're unable to file for bankruptcy then you can't pursue any government or private employers for discrimination.

Identifying the identity of a debt collector

It can be difficult to identify the debt collectors in bankruptcy. Scammers often claim 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 for the amount owed.

If you are in this scenario You may need to seek legal counsel. If a creditor violates the law, he or may be sued for damages. It is also possible to bring your bankruptcy case back and file an adversary action. This court proceeding might require you to hire an attorney.

Consult your bankruptcy lawyer if you're unsure whether your debt could be discharged. This will help you make a fresh start. You can negotiate a lower settlement agreement with your debt collector.

The bankruptcy discharge order prevents creditors from trying to collect on any debt that is dischargeable. The court may also issue an injunction which stops creditors from harassing and collecting on the debt that has been discharged. This can help stop garnishments of wages, car repossession, and foreclosure.