What are the advantages of Declaring Bankruptcy?

Harrisburg Bankruptcy Lawyer

What are the benefits of Declaring Bankruptcy?

There are many reasons why you may declare bankruptcy. One reason is to protect your Social Security benefits. The other is to get an opportunity to start over. Basically, a lot of times , people are forced to declare bankruptcy because they are just not able to maintain their finances.

Chapter 7

Chapter 7 bankruptcy can help you get a fresh financial foundation. You can discharge your debts and not affect the assets of others. It can be a difficult process and can be longer in the case of student loans or you need to sell your property.

A credit counseling appointment must be scheduled at minimum six months before filing. A court trustee will help you liquidate assets and answer any questions that creditors may have.

The Bankruptcy Code also includes a means test. The test is a screening tool which measures your income and expenditures. The test assumes you are averse to the system if your income exceeds the median income for your state.

Chapter 13

A Chapter 13 bankruptcy is an effective method of restructuring debts. This can make it easier to pay past due bills.

You must prepare a repayment plan before you declare bankruptcy. The plan will outline the amount you'll have to repay your creditors over the course of three or five years. It is essential to ensure that you have enough income to pay the bills.

You should consider contacting an agency for credit counseling that is non-profit before you file for bankruptcy. They can offer free assistance. They can also help create the right payment plan.

Chapter 13 allows debtors to keep certain assets. Some assets are not protected.

Automatic stay

The automatic stay, often known as the statute of limitations is an legal procedure created to shield the debtor from creditors. The automatic stay means creditors are not able to foreclose or file lawsuits against debtors while their bankruptcy case is still open.

This can be a useful option for debtors who are harassed, but the benefits can be limited. The duration of an automatic stay is typically determined by the amount of filings that were made within a given year.

A few exceptions might apply. For example, the court can grant relief from an

An automatic stay can be granted for a duration of just a few months, in the event that the property involved in the reorganization is not required.

Harrisburg Bankruptcy Lawyer .

A creditor could also ask for relief from the stay. These can include re-enforcing or the collection of debtor's payments as well as preserving the value of the asset.


Liquidation refers to a procedure in which assets are sold in order to pay off creditors. Depending on the nature of the business, the debtor may choose to liquidate its own property or let an uninvolved third party perform the process on his or her behalf. In either scenario, a court appointed trustee is in charge of the company's assets and distributes the results to creditors.

Insolvency laws were designed to make sure that creditors get fair treatment. By giving adequate notice to all parties, this can be accomplished. There are two primary types of creditors: secured and unsecure. Outright liquidation typically helps secured creditors better than unsecured creditors. Unsecured creditors, however, also get the benefits.

There are many insolvency laws across the world. They differ in important ways.

Protecting Social Security Income from creditors

Anyone who has Social Security benefits can file for bankruptcy and shield their earnings from creditors. However, there are exceptions to this policy.

A creditor can garnish your Social Security payments if they obtain a judgment against someone. It's important to know which types of debt could be taken from your money. This includes past due child support as well as delinquent Alimony and taxes that have not been paid.

The Social Security Administration can withhold benefits if there is a court judgment for unpaid child support or alimony. In addition, the Department of Treasury can withhold Social Security payments if you have past-due federal tax bills.

Transferring benefits from one account to another is a deviation from this rule. Banks are required to safeguard your funds when you deposit them directly into the benefit account. But, if the cash goes to a creditor's bank account, it will take longer to retrieve it back.

You might want to think about hiring a Harrisburg bankruptcy attorney before you start the bankruptcy before you begin the bankruptcy process. This will allow you to ensure you have the legal representation and knowledge that you require to manage your case.


Citations and other links

How bankruptcy helps people pay their debts

There are many reasons that you might file bankruptcy. It is essential to know your options and make an informed decision that is right for you. Here are some essential points to remember.

Chapter 7

If you have a lot of debt, Chapter 7 bankruptcy can be a viable option. This helps people make a financial turnaround and allows them to get a new start. If you need help, contact us if you're thinking about filing bankruptcy

You will need to attend a credit counseling meeting in a non-profit credit counseling agency before you are able to file. This will determine whether bankruptcy is the most suitable option.

Also, you will need to satisfy certain income and asset requirements. In certain states, you may be able to use the state exemption system to keep your properties from being sold to pay your creditors.

The procedure of filing bankruptcy typically takes between 4 and 6 months. It may take longer if additional documents are requested by the bankruptcy trustee.

Chapter 13

You may file bankruptcy if you're looking to eliminate your debt. Chapter 13 is a legal plan which helps you repay your debts in three to five years time frames. Its benefits include a stop to foreclosure actions, an opportunity to pay back past payments due and also a method to shield your property from the threat of lien stripping.

You must submit a specific repayment plan to the court. The plan is then reviewed by the trustee. There will be several possibilities to alter your repayment plan.

To reduce your monthly payments, you could prolong the period of payment for secured debts, such as a mortgage. It is also possible to reduce the principal amount of a secured loan.

If you've been discharged from the course of a Chapter 13 case, there are some rules. It is recommended to speak with an attorney.

Unsecured debt

There are two options when you're in debt either pay it off or apply for bankruptcy. The filing for bankruptcy can assist you in getting rid of debts that are not secured and keep you from accumulating more. It is not necessary to employ an attorney to file bankruptcy. You can use a free web-based tool like Upsolve to start.

Unsecured loans, such as credit cards, are the most common kind of secured debt. They can be a great option to pay off debt once it's due, however they're more risky than secured loans.

The interest rates for secured loans tend to be higher than secured loans. Rates are determined by the credit score of the person who is borrowing. The borrower can improve his credit score by making regular payments on debt.

Certain debts that are not secured, such as medical expenses, cannot be eliminated through bankruptcy. You may be able negotiate a reduction in your debt or negotiate a settlement. A debt settlement professional is able to contact the creditors on your behalf.

Property exempt from bankruptcy and discharge

If you declare bankruptcy, you are entitled to the right to exclude certain properties. This will help you pay debts. There are exemptions that differ from one state to the next. An attorney is recommended in case you are not sure of your rights.

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

The bankruptcy trustee will monitor the repayment plan and make payments to creditors. The plan allows you to keep the majority of your assets. It is possible to lose other property if the court requires you to.

Chapter 7 bankruptcy is the most sought-after because it permits individuals to pay off the majority of debts. You are able to keep some exempt property but creditors may be able to take it.

Effects on credit

While bankruptcy may affect the credit score of yours, it's not a quick fix. It may take several years to return to a healthy level.

Two things could affect your credit score should you go bankrupt. In the first, you'll likely see a large drop in your score during the initial year. To ensure the accuracy of your credit report you should have recommended to review your credit reports.

It is also possible to take steps to boost your credit score. You can do this by creating a new budget and making significant lifestyle changes. You will notice a gradual improvement to your credit score when you adhere to these steps.

You can also try secured credit cards. These cards are comparable to the regular credit card, however they require an additional security deposit. Some of these cards are available without any charges upfront.

These are only suggestions based on educated guesses. To get accurate information, you can consult with experts in the field. An Harrisburg bankruptcy attorney will be able to provide you with the legal aspects that apply to bankruptcy. Before you sign that dotted line ensure you understand the terms.


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

Can You Keep Your Property If You Declare Bankruptcy?

Secured debts could remain in bankruptcy

You might be wondering if you are allowed to keep your house, car loan, or other secured debt in the event of bankruptcy being filed. Although the general answer is yes but there are some exceptions to this rule. You will want to discuss your particular situation with an attorney and know the consequences of filing.

The most important thing to remember regarding secured loans is that it's property that is an obligation on the debt. It is possible for a creditor to take possession of your collateral if you do not pay your bills however they cannot sue you if you have declared bankruptcy. Your property can be kept in the event that you pay regular payments. However the secured loan cannot be used to pay. In a Chapter 13 bankruptcy, you have to renew your debt if you wish to keep your home.

Reaffirm your debts through bankruptcy if you're in debt on car or mortgage payments. This will allow you to resolve your financial problems and get on track in your repayments. It will allow the creditor access to your home and could lead to the loss of the value of your property.

Secured creditors are based on an agreement to secure the property, such as the deed of trust, a mortgage or a judgment lien. If you fail to pay your debts they are able to acquire possession of the property and collect fees and interest. It is imperative to make the payment again once it is repossessed.

Keeping your collateral can save you hundreds of dollars. However, you have to keep the insurance you would have purchased to protect your purchase, and continue to make your payments. You can either negotiate the terms of a new contract with your creditor, or transfer your collateral to someone else. Negotiations are feasible and could result in the creditor reducing or prolonging the period you pay them, or negotiating additional terms.

Another way to avoid foreclosure is to dispose of your property. If you're behind on your mortgage payments, certain states permit creditors to take equity in your property. If you're in an emergency and need the cash, selling your property could help you pay off your credit card.

Another alternative is to reaffirm the debt during the Chapter 7 bankruptcy. While the majority of debts can be discharged under bankruptcy, the liens attached to secured debts will not. These liens will remain on your credit report, and they can affect your credit score. Following bankruptcy, it is important to check your credit reports.

There are certain debts that can be cleared but remain on your credit record. It is also necessary to adhere to a specific timeframe in order to have your debts removed from credit reports. People often assume they are aware of the regulations and rules only to find that they're wrong. Rules change, and often are not explained very well. Be sure to research the rules before you declare bankruptcy. Nobody would like to declare bankruptcy, but if you find yourself in that circumstance, you must be aware of everything you need to be aware of prior to proceeding.

The bankruptcy process is complicated. A key point to remember is that an automatic stay is legal safeguard to prevent the creditor from taking any further action against you. The debtor can stop collecting, however, you are able to refuse to stop them. If the creditor does not agree with the stay, they could be able to ask the court to lift the suspension of the stay. Look at websites such as https://www.ljacobsonlaw.com/pa/harrisburg-bankruptcy-attorney/ for more information on bankruptcy and seek professional advice to answer your questions.

There are a myriad of instances of fraud in bankruptcy. Some people are caught up in a scenario that they believe is meant to help them, but then come to find out they're in much more in financial difficulty than they expected. Before you sign any legal documents, make sure that you have review the fine print.


Things to Learn About Bankruptcy

Things to know about bankruptcy

Bankruptcy can be used to resolve debts that are not paid. It usually comes through a court order. This process is designed to provide relief for those who are not able to pay the debt. There are several points to take into consideration when applying for bankruptcy.

Discharge does not eliminate debt

In bankruptcy, a discharge can be an order from the court that declares 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. It is essential to know that not all debts are able to be resolved through bankruptcy.

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

The bankruptcy process is a legal process that allows debtors to reorganize and get rid of their debts . Additional payments may be required by the court and may prolong the bankruptcy time.

Although bankruptcy may be able of helping to get rid of 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

Debtors can exempt certain property from Chapter 7 bankruptcy. These items could include clothing, furniture or even a computer. Exemptions are based on the worth of the item without regard to any mortgages or liens. The rules may differ from one state to the next. Colorado is an example of a state that allows a debtor to exempt farm equipment for up to $25,000 if it contributes to the owner's income.

Non-exempt property can be offered for sale through a bankruptcy trustee in order to pay debtors. It is usually done at a discounted price. If the value of the property is less than the exemption value, the trustee is required to pay the amount that is less to the owner. The amount is usually equal to the estimated value of the asset value, less the costs of the sale.

Liquidation of nonexempt properties following bankruptcy

Chapter 7 bankruptcy often includes the liquidation of property that is not exempt. The bankruptcy trustee's job is to liquidate and collect the assets of the debtor. After discharge of debtor's obligations The trustee distributes profits from the sale of nonexempt property belonging to the debtor to creditors.

A trustee's decision to liquidate or not liquidate an asset is based on a variety of elements. The cost of liquidation and the possibility that enough funds are available will be taken into consideration by the trustee. The trustee should determine if it is possible to sell the asset. The asset's worth should be weighed.

Follow the decision of the trustee.

If, for instance, you own a fancy car that is valued higher than the value of other belongings, you might not want to sell it. It may be difficult to locate a buyer to purchase the car.

Opposition to the discharge of bankruptcy

Your creditor might oppose your bankruptcy filings. This is known as an adversary process. The opposing party must demonstrate that there are grounds for an objection.

An objection may be filed for a materially inaccurate statement or the misappropriation money in a fiduciary position. An objection may be made by a creditor when court's orders are not adhered to. Your LIT may oppose your discharge if you do not provide your tax documentation as required under the Bankruptcy Register.

Debtors can respond to objections by asking to reopen the case. Sometimes, the Bankruptcy Register won't take any further action. But other times, the trustee will require further payments.

A discharge objection could also arise in the event that the debtor has knowingly transferred title to property. Inability to count the assets that were lost in bankruptcy is another common reason.

The formal proceedings can go on for an extended time

One of the most challenging aspects of a bankruptcy is the long term plan of execution. Although creditors can argue, it's not uncommon for them fight back. However, patience and perseverance are key. You can make the first steps toward a debt-free future with the help of a credit counselor and/or coach. In the final the best solution is to start over. the best solution, regardless of the root reason. The trick is to stay clear of mistakes and identifying the blocks. There are numerous resources online and a helpline that will assist you. If you're in looking for a credit counselor, be sure to do your research and avoid going to the dark side.Seek professional guidance from experts if you're in need of. A Harrisburg bankruptcy attorney is available to answer any questions you may have and assist with the legal process.


What exactly is Bankruptcy?

What exactly is Bankruptcy?

In general, when a person is unable to pay back their debts then they are able to get relief from their debts via bankruptcy. It is a legal procedure that is typically imposed through the court's order.

Chapter 7

Chapter 7 is a different chapter to chapter 13. It permits people, companies and non-profit organizations to discharge the majority of their debts if they pass the bankruptcy test. If you're interested in knowing whether your debt is dischargeable it is best to consult with a bankruptcy attorney.

The bankruptcy means test is a way to establish your earnings and expenses as well as assess your ability to repay your debts. In some cases, you may be required to submit an arrangement for repayment with your creditors. The repayment plan could involve paying down your debts in monthly installments spread over three to five year.

Along with paying your creditors, your trustee could also attempt to recover some of your possessions. Based on the circumstances of your case you might be able to keep some of your assets. In certain states, you may be eligible to utilize the federal exemption system to safeguard the majority of your assets.

You can obtain free bankruptcy legal assistance through the Legal Services Corporation. You can also get bankruptcy counseling services. A credit counselor can assist you determine if you're eligible for bankruptcy, and help you develop the repayment plan. A professional is the best representation. A Harrisburg bankruptcy lawyer can help you understand the legalities of declaring bankruptcy.

The Bankruptcy Code requires that you provide a proof of financial responsibility to the bankruptcy court. The certificate must prove that you have completed a class on financial management. It is also possible to submit the profit and loss report. This will allow your attorney to determine whether you're allowed to keep your property.

Chapter 7 does not allow the repayment of certain debts. This includes the child support obligation, alimony, and loans backed by a government unit.

Chapter 7 bankruptcy is a well-known type of bankruptcy. But, there are some drawbacks. Although it can provide you with a fresh start but it's not a fast answer to financial troubles. Chapter 7 isn't able to pay off certain debts 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 a plan for paying creditors over a three-to five-year time. The plan is approved by a bankruptcy judge, and a judge may amend the plan as needed. The repayment plan is generally determined by the debtor's monthly income.

If the debtor misses payments and is not able to pay, they could be denied Chapter 13 relief. They might be required change into Chapter 7 bankruptcy. The debtor can't file for personal or business loans in the course of a Chapter 13 bankruptcy case. There is a possibility of having to repay certain taxes.

The Trustee has to receive an exact copy of the debtor's financial statement as well as evidence of their financial management. They are also required to submit copies of any late-filed federal tax returns.

The Trustee will send to creditors a report that outlines how much money the debtor is owed. The remaining balance on the plan will also be mentioned in the report. Late claims are rejected by the Trustee. The court will accept the plan, and the claims will be dismissed.

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

If a debtor is late with an installment and the Trustee is not able to make a payment, they will send them a notice. This notice acts as an "stop sign" to creditors. It is illegal for creditors or debt collectors to seek to collect on the debt.

If a debtor misses several payments, they may not be able to pay future payments. Creditors can request permission from the court to take over the debt if the debtor is not able to make the payments. The court could also permit the creditor to take possession of a vehicle.

An attorney should be called immediately if a debtor is unable to pay an amount. They might be able change the repayment plan to make up for the missed payments. A bankruptcy judge may be able to convert the case into Chapter 7.

Chapter 13 bankruptcy is designed for individuals who are unable to pay their obligations. It protects co-signers as well as prevent repossessions and foreclosures. It is a great tool to help debtors get on the right track and avoid any future issues.

The Reasons Consumers File Bankruptcy

Reasons Why Consumers File Bankruptcy

People who seek bankruptcy often due to a variety of causes. Poor financial decisions, medical debt or home mortgages are all reasons why people file for bankruptcy. Several consumers also file repeatedly, causing lots of stress on their financial situation.

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

The United States spends large amounts of money for health medical care. The United States spends more per capita for health care than any other country. However, tens of millions of people are either uninsured or underinsured, leaving them vulnerable to large medical bills.

A lot of Americans live paycheck to paycheck. A recent study revealed that almost one in five households could pay for medical expenses. However, fortunately, Congress has passed legislation to assist with the initial cost of healthcare.

The Affordable Care Act capped out-of-pocket spending. While this has helped to reduce the amount of medical debt that some Americans are facing, some find it still difficult to afford their healthcare.

Additionally medical debt collectors have become more aggressive. They may sue you or take legal actions against you.

Collectors of medical debt frequently add fees to debts that are not interest-free. They also may include medical bills that are not paid on your credit score. Medical bills that are not paid can be on your credit report for seven year.

The best approach to deal with medical debt is to stay clear of it. However, if you are in a position where you can't pay your bills, you might require filing for bankruptcy.

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

A home mortgage is a major financial investment. No matter if you are purchasing a home for your self or with a spouse, you'll need to be aware of all costs. It's not a good idea to be left with a mortgage you can't pay.

Before you apply for mortgages, the most important question is which type of mortgage is right for you. There are many options. You can

You can choose a conventional loan that has either a fixed or adjustable interest rate or a VA loan, or an FHA loan. You can also choose a loan with a long or short term.

Gathering all relevant information is the best method to decide which type of mortgage you should get. This includes the terms and conditions of the loan. An experienced bankruptcy attorney in the area will help you understand your options. An Harrisburg lawyer is available to answer any questions you may have.

You must also determine whether you're eligible for a loan. If you're a military member or a veteran, you could be eligible for the VA loan. A USDA loan could be offered to residents of rural areas. It is also important to look into the most reliable mortgages.

Finding a mortgage following bankruptcy can be difficult however it's not difficult. You should be willing to work hard and find a lender that will deal with your circumstances. But first, you'll need to have good credit. It is necessary to be preapproved. The best method to accomplish this is to find the lowest price.

The filing of a bankruptcy will help stop wage garnishment. You could actually get back wages garnished within 90-days of filing.

Different types of debt are subject to different laws regarding wage garnishment. For example, alimony and child support can be garnished much more than taxes. The amount of wages garnished must not be more than 25% of an individual’s disposable income.

You are allowed to garnish whatever you wish according to the state. Certain states offer exemptions for government assistance or medical aid. There are also limits on the amount of personal property which can be garnished.

Most states allow an individual to seek a court order to stop garnishment of wages. In order to request an exemption, you must be able to prove that you earn exempted income. For example, you can claim the benefits of your Social Security benefits as an exemption.

There are a variety of ways to stop the garnishment of your wages. One method is to employ credit counseling services to negotiate a payment plan with your creditors. Although a credit counseling service could charge a fee it can also assist you to lower the amount that you have to pay.

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

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

There are some aspects you must know about debt collection, regardless of whether you are in bankruptcy or not. These include how to locate a debt collector and the process to get your debts forgiven.

Discharged debts

If your debts are dissolved following bankruptcy depends on your situation. You have to be able to pay off the dues. In order to pay your creditors, you might require the sale of your house or vehicle. Your assets and debts will be reviewed by the bankruptcy trustee, who will determine if your debts can or cannot be discharged.

There are many reasons why a court will refuse to discharge a debt. One reason why a court won't pay a debt is that the creditor might possess hidden assets. The creditor could prove that the debtor has hidden assets.

Since the debtor was unable to reveal all assets, the bankruptcy court didn't release the debt. However, the court embraced the decision of the debtor declaring that there was not enough funds to pay for the debts.

The Town filed an action against the Debtor in both an Action in District Court as well as an Compulsory Counterclaim. They also tried to foreclose municipal lien. The Town tried to recover the debts discharged through SS 524.

Collection efforts

You could receive calls from creditors during bankruptcy proceedings. This should be stopped by the law. Federal and state laws safeguard you. You might be able file a lawsuit against creditors if victimized.

Fair Debt Collection Practices Act, (FDCPA), outlines the legal requirements debt collectors must comply with to ensure that they are in compliance with law. A judge may also sanction collectors who do not follow the law. If a debt collector is found violating the law, the collector 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, since inaccurate information can damage your credit. You should always review your credit report in order to be sure that you are getting accurate details about your debt.

A stay automatically protects your from any collection actions. This is a court ruling that stops creditors from collecting your dues.

Discrimination in governmental units and private


No matter if you are a private company or a governmental one, bankruptcy filings prevent the making of any decision that are based upon these filings. The bankruptcy filings cannot be excluded from government loan programs. They can be considered in assessing a job candidate's creditworthiness.

It is important to learn about the law and its pitfalls to stay clear of discrimination. You may also need to have a lawyer assist you in your situation. An Harrisburg bankruptcy attorney can help you understand your rights. This is particularly important when you're an employer with operations in multiple jurisdictions. The third circuit was gracious enough to provide its opinion on a timely and pertinent issue for private sector employers.

The Third Circuit ruled that the bankruptcy law's most widely-known acronym was not a good idea. 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 refuse bankruptcy filings benefits from the government. The good news is that if you aren't able to file bankruptcy, you cannot bring a lawsuit against a private or governmental employer for discrimination.

Identifying the debt collector

Recognizing a debt collector in bankruptcy can be a challenge. Scammers typically claim to be debt collectors for creditors, and are looking for quick cash. They can employ a range of techniques to get you to settle the amount owed.

If you are in this scenario You may need to get legal advice. Creditors can be threatened with damages if he or she violates the law. A court hearing could be necessary to reopen bankruptcy proceedings. This is a court proceeding that may require you to hire an attorney.

Contact your bankruptcy attorney If you're not sure if your debt can be discharged. This will help you make a fresh beginning. You may be able to negotiate a lower settlement agreement with the debt collector.

The bankruptcy discharge order prevents creditors from seeking to collect on any dischargeable debt. The court can also issue an injunctions to keep creditors from contacting or seeking to collect on debts discharged. This will stop wage garnishments and car repossessions, as well as foreclosure.