What are the benefits from declaring bankruptcy?

Bankruptcy Attorney Harrisburg, PA

What are the benefits of declaring Bankruptcy?

There are many reasons to file bankruptcy. One reason is to safeguard your Social Security benefits. The other is to get a fresh start. The majority of people declare bankruptcy because they can't keep up with their finances.

Chapter 7

Chapter 7 bankruptcy is a procedure that can help you to get a fresh financial start. It allows you to discharge your debts with no impact on the assets of other people. The process can be difficult and can be longer in the case of student loans or you have to sell your home.

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

Additionally to that, the Bankruptcy Code includes a means test. The test is a way to measure your expenses and income. If your earnings are higher than the median of your state it is assumed that you are abusing it.

Chapter 13

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

If you decide to file for bankruptcy, you will need to prepare an repayment plan that must be approved by the bankruptcy judge. The plan will define how much you'll pay your creditors over the following three to five years. Additionally, you must make sure that you have enough money to cover the installments.

Before filing for bankruptcy it is recommended to look into a credit counseling agency that is not for profit which can offer free guidance. Also, you can get assistance putting together a payment schedule.

In Chapter 13, the debtor can keep some assets. Not all assets are protected.

Automatically pause

The automatic stay, also referred to as the statute of limitations, is a legal process designed to protect debtors from certain creditors. The automatic stay means creditors are not able to foreclose or file lawsuits against debtors if the bankruptcy case remains open.

Although this is an effective option for debtors who are harassed however, the benefits are only limited. In general, the duration of an automatic stay will depend on the amount of filings filed in the course of a year.

A few exceptions might apply. There are some exceptions.

Automatic stay of up to a couple of months, as long that the property is not required for an effective restructuring.

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


Liquidation is the term used to describe the sale of assets to enable creditors to be compensated. In the case of the business the debtor can choose to liquidate its own assets or let a third party do so on behalf of him or her. In either case, a court appointed trustee is in charge of the company's assets, and then distributes the profits to creditors.

Insolvency laws are intended to make sure that creditors get fair treatment. This is accomplished by providing adequate notice to all parties interested. There are two types of creditors: secured and unsecured. Secured creditors are usually the primary beneficiaries of liquidation. However, unsecured creditors also get a benefit.

There are a variety of laws governing insolvency across the world. They differ in important ways.

Social Security Income Protection from Creditors

Anyone who has Social Security benefits can file for bankruptcy and protect their earnings from creditors. There are exceptions to this rule.

If a lender gets a judgment against you, they could garnish your Social Security payments. It is important to understand which debts are able to be taken from your funds. This includes child support that is past due as well as delinquent Alimony and tax debts that are not paid by the federal government.

If you are a victim of a court judgement for child support that is not paid or alimony, the Social Security Administration may withhold the benefits you receive. Additionally 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 an exception to this rule. If you directly deposit funds into a benefit account banks have to safeguard them. But, if the cash goes to a creditor's bank account, it will take more effort to recover it back.

Consider hiring an Harrisburg bankruptcy attorney prior to beginning the bankruptcy process. This will help you ensure you have the legal representation and knowledge you need to handle your bankruptcy case.


Citations and other links

How Bankruptcy Helps People Pay the debt

There are many reasons you could file for bankruptcy. It is crucial to be aware of your options and come to the best decision for you. Here are some of the key things to think about.

Chapter 7

For those with serious debt, Chapter 7 bankruptcy can be an alternative. It can help people start with a fresh financial start, giving them a chance to start over. If you're thinking of making bankruptcy an option, consult an attorney to get help.

Before filing for bankruptcy, you'll need to go through a credit counseling session prior to filing in a non-profit credit counseling agency. This will allow you to determine whether bankruptcy is the most suitable alternative.

You'll also need to meet certain income and asset requirements. In certain states, it is possible to utilize an exemption system in the state to keep your property from being sold to pay your creditors.

The procedure of filing bankruptcy generally takes four to six months. It can however take longer if you have additional documents submitted to the bankruptcy trustee.

Chapter 13

You can file for bankruptcy if you're looking to get rid of your debt. Chapter 13 is a plan that has been approved by the court which helps you repay your debts over three to five-year intervals. You'll be able to stop foreclosure proceedings and pay off past payments. In addition, you will be able to safeguard your home from being taken away by people who strip your lien.

A specific repayment plan has to be presented to the court. This will be reviewed by a trustee. There are several options to amend your plan.

For instance, you could extend the payment timeframe on secured debts, for example, as a home mortgage, to lower your monthly payment. You can also reduce the principal balance of a secured credit.

If you've been discharged in the course of a Chapter 13 case, there are certain rules. It is best to consult an attorney.

Unsecured debt

There are two options to consider 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 stop you from accruing more. But you do not have to engage an attorney if you don't wish to. You can use a free web-based tool like Upsolve to get started.

Unsecured loans such as credit cards are among the most sought-after kind of secured debt. They can be a fantastic way to pay off debt once it's due, but they are more risky than secured loans.

Unsecured loans have higher interest rates than secured loans. Rates are dependent on the credit score of the person who is borrowing. The borrower can enhance his credit rating by making timely payments to debt.

Certain unsecure debts, such as medical expenses, aren't removed through bankruptcy. Instead, you might be in a position to negotiate a lower amount or settle. A debt settlement professional will contact your creditors on your behalf.

Discharged bankruptcy and exempt property

When you file for bankruptcy, you are entitled to the option of exempting certain properties. This allows you to pay off your debts. Exemptions vary from state to state. A lawyer is suggested in case you are not sure of your rights.

The court can appoint an appointed trustee to collect the non-exempt property, and then sell the property. These proceeds will be used to pay the creditors.

The bankruptcy trustee is responsible for monitoring the repayment plan and pay creditors. The majority of your assets is able to be retained. You can lose any other property, if the court directs you to.

The majority of people file for bankruptcy under Chapter 7 because it allows the bankruptcy process to eliminate all of their debts. Although you are able to keep some of your non-exempt property, the creditors can still be able to take it.

The impact of credit

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

The impact of bankruptcy on your credit score is in two ways. In the first, you'll likely experience a drastic decrease in your credit score in the initial year. It is recommended to examine your credit report regularly to ensure it's correct.

You can also take steps to improve your credit rating. This can be done by making major lifestyle changes and establishing your own budget. If you take the proper steps it is possible to see an improvement in your credit.

Secured credit cards are also offered. These cards are similar to traditional credit cards, but require the deposit of a security. There are some that are available with without a fee upfront.

These are just suggestions based on educated guesses. To get accurate information, you should get advice from experts who are experts in this field. In Harrisburg, PA a bankruptcy lawyer can counsel you on the legal ramifications of bankruptcy. Before you sign that dotted line make sure you fully understand the legal terms.


Are You able to retain your property in the event that you declare bankruptcy?

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

Secured debts may stay in a bankruptcy

If you're a homeowner and have a mortgage, car loan or other kind of secured debt it is possible to wonder whether you could keep the property even if you declare bankruptcy. While the majority of time the answer is yes but there are certain exceptions. It is crucial to speak with an attorney regarding your specific situation and consequences of filing.

The first thing you need to know regarding secured debt is that it's property that is an obligation on the debt. It is possible for a lender to repossess your collateral if you are unable to pay your debts, but they cannot pursue you if you are in a bankruptcy. Your property can be kept in the event that you pay regular payments. But, your secured loan cannot be used to repay. If you would like to keep the property you own, you'll need to confirm the debt in Chapter 13.

Reaffirm your debts under bankruptcy if you are behind on car or mortgage payments. This will let you deal with your financial difficulties and make progress with your payments. This will give the creditor to access your property and will lead to the loss of the property's value.

Secured creditors can be made up of a security arrangement that includes trust or deed, mortgage, or judgment lien. They may take possession of your home if you do not pay the debt and also collect interest and attorneys' fees from your property. Make sure that you make the payment again once it's repossessed.

The collateral you have saved you hundreds of dollars. But you must keep the insurance you would have purchased to protect your purchase, and keep making your payments. You may negotiate an agreement with your creditor, or sell your collateral to another. Negotiations are often fruitful, with the result of a creditor reducing your debt, giving you an extension of time for payment, or negotiating additional terms.

Selling your home is another way to avoid foreclosure. If you're in default on your mortgage, some states permit creditors to seize the equity in your home. If you're in an emergency situation and require cash, selling your home could help you pay off your debt.

Reaffirming the debt through Chapter 7 bankruptcy is another option. The majority of debts will be cleared out during bankruptcy, but certain the liens attached to certain secured debts won't be. These liens will remain on your credit report and will impact your credit score. Therefore, you must examine your credit report following the bankruptcy filing.

There are certain debts that can be cleared however they remain on your credit record. It is also necessary to adhere to a specific timeframe in order to have your debts deleted from credit reports. Many people believe they are familiar with the regulations and rules, only to discover that they were wrong. Rules change and are often not explained very well. The best way to stay informed is to research before declaring bankruptcy. Although nobody wants to go through this but you must be prepared in case you are forced to.

It is often difficult to understand the bankruptcy process. The automatic stay, which serves as legal protection that stops creditors from taking further actions against you, is a crucial idea to remember. The debtor has the option of stopping the collection process, but you can choose not to accept the offer. If the creditor does not agree to this, they may be able petition 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's a lot bankruptcy fraud going around. Sometimes people are manipulated to believe they're being assisted by a bankruptcy attorney, but end up in deeper financial trouble than they realized. Before signing any legal documents, be sure that you have go over the small print.


Things to know about bankruptcy

What You Need to Be aware of about bankruptcy

The bankruptcy process can be used to pay off debts not being paid. It's typically imposed through an order of the court and is meant to provide relief to those who are in debt, since they're no longer in a position to repay the debt. There are several points to take into consideration when applying for bankruptcy.

Discharge does not eliminate debt

A discharge is an order by a judge stating that the debtor is free of personal responsibility for a particular debt. To be qualified for a discharge, there are certain criteria. It is important to note that not all debts can be eliminated by bankruptcy.

Certain non-dischargeable debts are student loans, alimony, child support, and spousal support. These obligations must be paid back to the lender.

A bankruptcy is a legal proceeding that allows debtors to consolidate and eliminate debts. The court could also order additional payments or prolong the bankruptcy duration.

Although bankruptcy may help erase a lot of debts, it is also possible to eliminate a number of exceptions to the law. Some debts are not immediately erased, such as those resulting from fraud or student loans, government-funded debts as well as spousal support.

Property is exempt from bankruptcy

In the course of a Chapter 7 Bankruptcy, debtors are allowed to exempt certain items of property. They can include items like furniture, clothing or even a computer. The exemptions are determined by the worth of the item minus any mortgages or liens. This rules can differ between states to the next. Colorado is an example of a state that allows a debtor to exempt farm equipment up to $25,000 if the equipment contributes to the owner’s livelihood.

A bankruptcy trustee could also offer non-exempt property to pay debtors. It is usually done at a discounted price. When the amount of the property is less than the exemption amount, the trustee pays the amount that is less to the owner. The amount paid is usually equal to the value estimated for the asset, minus the costs of the sale.

Liquidation of nonexempt property after bankruptcy

Liquidation of nonexempt property is a common aspect of Chapter 7 bankruptcy. The bankruptcy trustee's job is to collect and liquidate the assets of the debtor. The trustee will distribute the proceeds of the sale of assets that are not exempt to creditors once the debtor is discharged.

The decision of a trustee to liquidate or not liquidate a specific asset depends on a number of factors. The trustee should be aware of the costs of liquidation and the possibility of having enough funds. The trustee should determine if it is feasible to sell the asset. In the end, the worth of the asset must be considered.

to comment on the trustee's in on the trustee's.

For example, if you have a luxurious vehicle that is worth more than the value of your other assets, you may not be able to sell it. It could be difficult to locate someone to purchase the car.

Opposition to bankruptcy discharge

Your creditor might oppose your bankruptcy filings. This is known as an adversary proceeding. This is called an adversary proceeding.

The reasons to file an objection are a materially incorrect written statement or the misappropriation of funds acting in a fiduciary role. A creditor may also file an objection due to failure to comply with a court order. For instance, if, for example, you did not supply your tax documents as required by the Bankruptcy Register, your LIT may oppose your discharge.

Debtors may respond to opposition by asking the court to reopen the case. Sometimes the Registrar of Bankruptcies will decide that there is no need for further action. Sometimes, however the trustee could require additional payment.

A person who is in fraud when transferring title to property could cause an objection to discharge. Failure to record assets that were lost during bankruptcy is another typical reason.

Formal events can last for an extended time

The long-term plan of execution is one of the most difficult aspects of filing for bankruptcy. While it's not unusual for creditors to launch a fight, a fair amount of patience and persistence are the order of the day. The first steps to debt-free life by enlisting the assistance of a credit counselor or an advisor. Whatever the reason, a fresh start is the best choice. Avoiding the pitfalls and identifying the issues is essential. Luckily, there's a free help line and online resources to help you navigate towards the right direction. If you're looking for a credit counselor ensure that you conduct your research thoroughly and seek assistance from professionals when needed. In Harrisburg, PA a bankruptcy lawyer will be able to answer your questions and guide you through the legal procedure.


What is Bankruptcy?

What exactly is Bankruptcy?

When someone is unable to settle their debts, they can seek bankruptcy relief. Bankruptcy is a legal process that's usually enforced by an order of a court.

Chapter 7

Chapter 7 is a different chapter to chapter 13. It allows people, companies and non-profit organizations to discharge the majority of their debts if they meet the bankruptcy means test. If you're interested in knowing whether your debt is dischargeable it is best to seek the advice of a bankruptcy lawyer.

The test for bankruptcy is a method to establish your earnings and expenses as well as evaluate your ability to pay your debts. In some instances you might be required to submit a repayment plan with your creditors. The repayment plan could involve the payment of your debts in monthly installments spread over three to five years.

Your trustee may also attempt to take your property. It is possible to keep certain assets based on your circumstances. You could be able to take advantage of the federal exclusion system in certain states to protect certain property.

You can obtain free bankruptcy legal help through the Legal Services Corporation. There are also bankruptcy counseling services available. A credit counselor can help determine if you are eligible to file bankruptcy and help you plan your payments. A professional is the ideal representation. In Harrisburg, a bankruptcy lawyer can assist you understand the legal requirements of filing bankruptcy.

In accordance with the Bankruptcy Code, you must present a document proving your financial responsibility to the bankruptcy court. This certificate must show that you have completed a class in financial management. You might also be required to file a profit and loss statement. This will assist your lawyer determine if you can keep your property.

Chapter 7 doesn't allow the discharge of certain debts. These include child support , Alimony, and loans that are guaranteed by a government unit.

Chapter 7 bankruptcy is a typical type of bankruptcy but there are a few disadvantages. It may be a way to make a fresh start but it won't resolve all of your financial problems. Chapter 7 cannot discharge some obligations like student loans and tax debt.

Chapter 13

A Chapter 13 bankruptcy generally requires that the debtor propose a plan for creditors to pay over a period of 3 to five years. A bankruptcy judge will approve the plan and may modify it in the event of need. The repayment program is usually determined by the amount of income the debtor earns per month.

The debtor who fails to make payments is likely to be barred from Chapter 13 relief. They may have to convert to Chapter 7 bankruptcy. During the Chapter 13 case, the debtor cannot apply for an individual or business loan. You may have to pay back certain taxes.

The debtor is required to supply the Trustee with the copy of their income statement and proof of financial management. They must also submit copies of any federal tax returns.

Once the plan is completed, the Trustee will send an account to the creditors detailing the amount the debtor has owed them. The remaining balance to the plan will also be noted in the report. Late claims will be rejected by the Trustee. Once the plan has been accepted by the court the claims will be dismissed.

The first payment has to be made within 30 days from declaring bankruptcy. The debtor is also required to supply the Trustee with a copy from their attorney of a payment receipt. The debtor could be able to amend the plan.

The Trustee is required to send an notice to a debtor in the event that they fail to pay their obligations. This notice acts as a "stop signal" to creditors. It makes it illegal for the debt collectors to to collect on the debt.

If a debtor is late on multiple payments may become ineligible to make future payments. The creditor may seek permission from the court to collect the debt if the debtor isn't able to pay. Creditors may be granted permission by the court to repossess the vehicle.

An attorney should be called immediately in the event that a debtor fails to make the amount due. They might be able alter the repayment plan to make up for the non-payments. A bankruptcy judge might be able to convert the case into Chapter 7.

Chapter 13 bankruptcy is designed to aid those who require help paying their debt. It is a way to protect co-signers and stop repossessions and foreclosures. It can also aid a debtor to get back on track and stop future debt from becoming problematic.

The reasons why people file for bankruptcy

There are many reasons why people file bankruptcy.

A variety of factors can be responsible for individuals filing for bankruptcy for a variety of reasons. They are a result of poor financial choices, medical debt, and home mortgages. Many consumers file for bankruptcy repeatedly and put an immense amount of stress to their financial situation.

Medical debt is a major problem 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 a lot of dollars on health care. It is the largest spender per capita than any other country around the globe. But, there are tens of million of uninsured and underinsured people, making them susceptible to expensive medical bills.

Many Americans are living from pay to pay. In fact, a recent study showed that nearly five out of five households would pay for medical expenses. Happily, Congress has passed legislation to assist with the initial cost of healthcare.

The Affordable Care Act has limited out-of-pocket spending. Although this has reduced the amount of medical debt certain Americans are facing, some find it still difficult to afford their healthcare.

In addition, the number of medical debt collectors has grown. They can be able to sue you, initiate legal action against you, or even put an obligation on your real estate.

Often, medical debt collectors will tack on extra fees to debts that are not backed by interest. It is also possible to see medical bills that are not paid being added to your credit score. These debts stay on your credit file for seven years.

The best way to deal with medical debt is to stay clear of it. If you're not able to pay your bills, bankruptcy may be an option.

Medical debt is one of the most frequent reasons that people need to file bankruptcy. The Consumer Bankruptcy Project estimates that approximately half of bankruptcy debtors have medical expenses in their bankruptcy.

Taking out a home mortgage is a major financial commitment. If you're looking to purchase a home on your own or with a spouse, you'll need to ensure that you're aware of all expenses. You don't want to end up with the burden of a mortgage that you cannot pay.

Before you apply for mortgages the first thing you need to ask is which kind of mortgage is suitable for you. There are a variety of options out there. There are numerous possibilities.

You can choose a traditional loan that has an adjustable or fixed interest rate or you can choose a VA loan, or an FHA loan. The loan may be short-term or long-term.

The collection of all pertinent information is the best method to choose which kind of mortgage you need. This includes details about the conditions and terms of your loan. It's also beneficial to include a local bankruptcy attorney on hand to make sure you understand the various options available. A Harrisburg lawyer can meet with you to answer any questions you may have.

There are other things to consider, including whether you're eligible for the loan. If you're a service member, you may qualify for an VA loan. If you live in a rural area, you may be able to get a USDA loan. Also, you should examine the most trustworthy mortgages.

The process of getting a mortgage after bankruptcy can be difficult however it's not difficult. It is important to do the work and find a lender who will work with your situation. But first you'll have to be in good credit. This means that you'll need to apply for a preapproval. The most effective way to achieve this is to get the lowest price.

Utilizing bankruptcy to stop wage garnishment could be a viable option to get out of the burden of. You can actually recover any wages you have been able to garnish within 90 days of filing.

Different laws on wage garnishment apply to different types of debt. For instance, alimony or child support are able to be garnished much more than taxes. The amount of money garnished cannot exceed 25% of an individual's disposable income.

There are also state-specific laws regarding the amount that can be garnished. Some states have exemptions for medical assistance or government assistance. Additionally, there are restrictions on the amount that can be taken from personal property.

The majority of states permit individuals to ask for a court order to stop garnishment of wages. You need to prove exempt income to request an exemption. For example, you can claim the benefits of your Social Security benefits as an exemption.

There are a variety of methods to stop garnishing your wages. One way is to use an expert in credit counseling to negotiate an arrangement for payment with your creditors. Although a credit counseling service might charge a fee, it may also be able to help to lower the amount that you pay.

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

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

In bankruptcy or not you are, there are a few things you need to know about debt collection. This includes finding an individual who can collect your debt and how to obtain your debts discharged.

Discharged debts

The amount of debt that is discharged after bankruptcy will depend on your situation. You have to be able to pay your debts. You may have to sell your car or home to pay off your creditors. The bankruptcy trustee will take a examine your assets and debts and determine if your debts are dischargeable.

There are many reasons why a court will refuse to release a debt. One reason why a court won't release a debt is due to the fact that the creditor might possess hidden assets. In this case the creditor has the ability to show that the debtor was deceived on their loan application.

The bankruptcy court could not discharge the debt as the debtor had not disclosed all of their assets. The court, however, took the decision of the debtor declaring that there was not enough funds to cover the charges.

The Town brought action against the debtor in both an Action in District Court as well as an Compulsory Counterclaim. They also attempted to foreclose municipal lien. The Town also attempted to collect debts discharged through SS 524.

Collection efforts

You could receive calls from creditors in bankruptcy process. This should be stopped by the law. You are protected under laws both state and federal. If you're being targeted and abused, you may be able to make a argument to file a lawsuit against the creditors.

Fair Debt Collection Practices Act, (FDCPA), outlines the legal obligations debt collectors must meet to ensure that they are in compliance with the law. A court can also sanction debt collectors who break the law. A collector who is found violating the law could face fines or even be ordered to pay attorney costs.

The Fair Credit Reporting Act (FCRA) assures creditors that they report exact details. This is crucial, since inaccurate accounts can harm your credit. You should always review your credit report to be sure that you have accurate details about your financial obligations.

An automatic stay shields you from any collection efforts. This is a court ruling that will stop creditors from pursuing your debt.

Discrimination between government units and private


Whatever your situation, whether you're a private employer or a governmental one bankruptcy filings prohibit you from making any decisions that are based on these filings. Besides, you can't exempt bankruptcy filers from any government loan programs. They can be considered in assessing a job candidate's creditworthiness.

It is best to learn about the law and its dangers to avoid discrimination. It is also possible to have a lawyer assist you in your case. In Harrisburg, PA, an attorney for bankruptcy will help you understand which rights you have. This is particularly true when you're an employer that operates in several jurisdictions. The third circuit was considerate enough to weigh in on an important and timely issue for private sector employers.

The Third Circuit ruled that the Bankruptcy Act’s most well-known acronym was a non-starter. That is, you can't deduct bankruptcy from your taxes and you cannot exclude bankruptcy filers from loans from government programs, and you can't stop bankruptcy filers from receiving government benefits. Good news: If you're unable to file for bankruptcy, you cannot take on any private or governmental employers for discrimination.

Identifying the identity of a debt collector

It can be difficult to spot a debt collector in bankruptcy. Scammers often pretend to be debt collectors for creditors, and are looking to make a quick payment. They might employ a variety of methods to get you to pay the debt.

If you're in this position If you find yourself in this situation, it is advisable seek legal advice. Creditors are liable to be sued for damages if he or she violates the law. It is also possible to reopen your bankruptcy case and file an adversary action. This legal process could require you to hire an attorney.

If you're not sure if your debt has been discharged, contact your bankruptcy attorney. This will help you get a fresh start. It is possible to negotiate a lower settlement agreement with the debt collector.

The bankruptcy discharge decree prohibits creditors from trying to collect on any dischargeable debt. A court can also issue an injunction that prevents creditors from contacting and pursuing the debt that has been discharged. This will stop the garnishment of wages and repossessions of cars, as well as foreclosure.


Bankruptcy Lawyer in Harrisburg, PA