What are the benefits of declaring Bankruptcy?

Harrisburg Bankruptcy Lawyer

What are the advantages of declaring Bankruptcy?

There are many reasons to file bankruptcy. One reason is to preserve your Social Security benefits. Another is to make a fresh start. The majority of people declare bankruptcy due to the fact that they are unable to maintain their financial obligations.

Chapter 7

Chapter 7 bankruptcy can help you make a new financial start. It lets you pay off your debts without affecting other assets. However, the process could be extremely difficult and could be longer if you are owed money for student loans or if you have to sell your home.

Harrisburg Bankruptcy Lawyer .

A credit counseling session must be scheduled at least six months prior to filing. A court trustee will assist you liquidate assets and address questions from creditors.

The Bankruptcy Code also includes a means test. The test is a screening tool that measures your income and expenses. If your earnings are greater than the state's median it is assumed that you are abusing it.

Chapter 13

Chapter 13 bankruptcy can be an excellent way to consolidate your debts. It can also make payments on past due bills less expensive.

You should create a repayment plan prior to when you apply for bankruptcy. The plan will define how much you'll have to pay your creditors over the course of a three to five year period. It is essential to ensure that you have enough income to cover the expenses.

You should think about contacting an agency for credit counseling that is non-profit before you file for bankruptcy. They can offer free advice. They will also assist you to create a payment plan.

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

Automatic stay

The automatic stay, often known as the legal stay is a legal procedure designed to protect debtors from certain creditors. The automatic stay ensures that creditors are not able to foreclose or file lawsuits against debtors if the bankruptcy case is still open.

This can be a useful option for those who have a debtor who is harassed However, the benefits could be limited. The length of an automatic stay is usually determined by the number of filings that were made within a given year.

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

automatic stay for a few months, as long that the property is not required for an effective reorganization.

A creditor may also request relief from the stay. This could include re-enforcing or paying debtors as well as preserving the value of the asset.


Liquidation refers to the sale of assets to enable creditors to be paid. Depending on the nature of the company the debtor could decide to liquidate its own assets or let a third party do so on behalf of him or her. A trustee appointed by the court appointed to manage the assets belonging to the business and then distribute the proceeds to creditors.

Insolvency laws are intended to ensure that creditors are treated fairly. By giving adequate notice to all parties, this can be achieved. There are two major categories of creditors, secured and secured. Outright liquidation generally benefits secured creditors more than creditors who are unsecured. Unsecured creditors, however, receive the same benefits.

There are a variety of laws governing insolvency all over the world. They differ in a few significant ways.

Protection of Social Security Income from creditors

Someone who gets Social Security benefits may file for bankruptcy to shield their earnings from creditors. There are however exceptions to this rule.

A creditor may levy your Social Security payments if they obtain a judgment against someone. It is essential to be aware of which debts are able to be taken from your account. This includes past due child support or delinquent Alimony payments, as well as tax debts that are not paid by the federal government.

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

Transferring the benefits of one account to another is an exception to this rule. Banks are required to safeguard the funds you deposit them directly into the benefit account. But, if the cash is transferred to a creditor's account, it will require more effort to recover it back.

It is worth looking into hiring a Harrisburg bankruptcy lawyer prior to beginning the bankruptcy before you begin the bankruptcy process. This will ensure that you have the right legal advice or representation to go about your case or what you are trying to achieve.


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How bankruptcy can help people pay the debt

There are many reasons that you could file for bankruptcy. It is essential to be aware of the various options available to make the right decision for your own needs. Here are some of the main aspects to take into consideration.

Chapter 7

Chapter 7 bankruptcy is an excellent option for those who have significant debt. It allows individuals to achieve financial stability and allows them to get a new start. Contact us for assistance if you're thinking about filing bankruptcy

Before you file, you'll need to go through a pre-bankruptcy credit counseling session through a credit counseling agency. This will tell you if bankruptcy filing is your best choice.

In addition, you'll have to meet certain asset and income requirements. In certain states, you may be able to use the state exemption system to shield some properties from being sold in order to pay your creditors.

The process of filing for bankruptcy usually takes between 4 and 6 months. It may take longer if additional papers are requested by the bankruptcy trustee.

Chapter 13

If you're in search of an option to get rid of debt, consider applying for bankruptcy. Chapter 13 is a court-approved plan that allows you to pay off your debts in three to five-year intervals. You will be able to stop foreclosure proceedings and make up the missed due payment. Additionally, you can protect your property from being removed by lien strippers.

You have to submit a specific repayment proposal to the court, which is reviewed by a trustee. You will be given several opportunities to make changes to your repayment plan.

To lower your monthly payment, you could extend the payment period on secured debts such as a mortgage. You can also reduce the principal balance on a secured loan.

There are also certain rules to follow in the event of a prior discharge from a Chapter 13 case. It is best to consult an attorney.

Unsecured debt

If you are in debt there are two options: paying the debt off or declaring bankruptcy. Insolvency filing can aid in eliminating debt that is not secured and keep you from accumulating more. You don't need to employ an attorney if you do not want to. To get started, you can use Upsolve an online, free tool.

Unsecured loans such as credit cards are the most well-known type of secured debt. While they are an excellent option for paying off debt, they are also more risky than secured loan.

The interest rates on secured loans tend to be higher than secured loans. The rate is based on the borrower's credit rating. However, the borrower is able to improve their rating through regular debt payments.

Certain debts that are not secured, such as medical bills, cannot be removed by filing bankruptcy. However, you might be able to negotiate a reduced amount or even a settlement. A professional in debt settlement can assist you in the negotiation of your creditors.

Exempt property and discharged bankruptcy

You can exclude certain properties from bankruptcy. This can help pay off debts. Exemptions may vary from state to state. If you don't understand your rights, you should seek advice from an attorney.

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

In addition to paying the creditors, the bankruptcy trustee will also monitor the repayment program. You are able to keep the majority of your assets. But you may lose other properties if you do not obey a court order.

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

Effects on credit

While bankruptcy may affect your credit score, it's not a solution that is quick and easy. It may take several years before your credit will be restored to a normal level.

Credit scores are affected by bankruptcy in two ways. The first is that you could experience a drastic decrease in your credit score in the first year. It is a good idea to examine your credit report frequently to make sure it is accurate.

It is also possible to take steps to boost your credit score. This is done through major changes to your lifestyle and setting up a new budget. It is likely that you will see an increase in your credit score if 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. They are also available with without a fee upfront.

These are only suggestions based on educated guesses. For precise information, you should seek advice from professionals in the field. In Harrisburg, PA a bankruptcy lawyer will be able to guide you on the legalities of bankruptcy. Before you make that decision, make sure you fully understand the legal terms.


Can You Keep Your Property If You Declare Bankruptcy?

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

Secured debts can remain in bankruptcy

It is possible to ask if you are allowed to keep your car, home loan, or any other secured debt in the event of bankruptcy being filed. However, the majority of times, it is true, there are certain exceptions. It is important to speak with an attorney regarding your specific situation and the implications of filing.

Secured debt is property that is an obligation on the debt. This is the very first thing you need to know about it. There is a possibility for a creditor confiscate your collateral if are unable to pay your debts however, they are not able to 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 is not able to be used to pay. If you would like to keep the property you own, you'll be required to reaffirm the debt in Chapter 13.

If you are behind in your car or mortgage payment, you'll have to reaffirm the debt in your bankruptcy. This will allow you to have an opportunity to resolve your financial problems and return to your payment plan. But, it could allow the creditor to seize your property, which will result in you losing the value of the property.

Secured creditors are built on a security agreement like trust or deed mortgage, judgment lien. If you fail to pay your debts they may acquire possession of the property and collect attorney's fees and interest. You must make sure you pay back the debt after the property is taken.

Keeping your collateral can save you hundreds of dollars. However, you must retain the insurance you taken out to secure the purchase, and you must continue to pay your bills. Negotiate the terms of a new contract, or sell your collateral. Negotiations may be fruitful, with the result of the creditor being able to reduce your debt, giving you an extension of time to pay, or negotiating additional conditions.

Selling your property is another method to stay out of foreclosure. If you're behind on your mortgage, a few states allow creditors to seize the equity in your home. If you are in an emergency and need the cash, selling your property can help you repay your credit card.

Reaffirming the debt in Chapter 7 bankruptcy is another alternative. Most debts will be wiped out in a bankruptcy, but some liens associated with some secured debts will not be. These liens will remain on your credit report and they can affect your credit score. Therefore, you should check your credit report after the bankruptcy filing.

Certain debts are able to be paid off but they be on your credit report. There is also a statute of limitations which requires a certain amount of time to be removed from your credit history. Oftentimes people think they know the regulations and rules, only to they discover that what they thought to be correct was everything however. Rules can change, and sometimes they are not easily understood. The best way to stay informed is to research prior to declaring bankruptcy. It is not something that anyone would ever want to do that, but if you are in the situation , it is important to know all you need to know before proceeding.

The bankruptcy process can be complicated. The automatic stay, which serves as a legal safeguard to stop creditors from taking any further action against you, is a crucial aspect to be aware of. The debtor has the option of stopping collection activities, but you may refuse to do so. If the creditor is not satisfied with the stay, they could be able to 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 are a myriad of instances of bankruptcy fraud. Sometimes people are manipulated to believe they're being assisted by a bankruptcy attorney, but they end up in deeper financial trouble than they thought. Make sure you read any fine print and really understand the implications of what you are giving up and signing before you sign any legal document.


Things to know about bankruptcy

Things to Know About Bankruptcy

Bankruptcy is a way to resolve debts that are not being paid. It's typically imposed through a court order and is intended to provide relief to those who are in debt, since they are no longer able to pay the debt. There are several things to be aware of when filing for bankruptcy.

Discharge does not eliminate debt

A discharge is an order issued by a judge stating that the debtor is released from all personal responsibility for a specific debt. There are certain requirements that must be met in order to qualify for an exemption. It is important to note that not all debts are able to be resolved through bankruptcy.

Certain debts that are not dischargeable include student loans and alimony as well as child support and spousal maintenance. These debts have to be paid to the lender.

The bankruptcy process is a legal procedure that permits debtors to reorganize and remove their debts . Additional payments could be required by the court, and can extend the time for bankruptcy.

Although bankruptcy may help erase a lot of debts, there are also a range of legal exceptions. Some debts are not instantly erased, for instance, the debts for fraud, student loans, government-funded debts, and spousal support.

The bankruptcy exemption excludes property

Debtors can exempt certain property from Chapter 7 bankruptcy. These items could include furniture, clothing, or a computer. Exemptions are based on worth of the item minus any liens or mortgages. It is important to note that this policy can differ by state. For example, in Colorado the debtor is able to exempt farm equipment up to $25,000 provided that it contributes to the owner's livelihood.

Non-exempt property can be offered for sale by a bankruptcy trustee in order to pay creditors. In most cases, this happens with a discount. The trustee is required to pay the amount to the owner in case the asset's value is lower than the exemption amount. The amount paid is usually the same as the value estimated for the asset, minus the fees of sale.

After bankruptcy, liquidation of property that is not exempt

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

The decision of a trustee to liquidate or not liquidate a specific asset is based on a variety of elements. The trustee should take into consideration the expense of liquidation and the likelihood of having sufficient funds available. The trustee should determine if it is feasible to dispose of the asset. The asset's worth must be evaluated.

Follow the advice of the trustee.

For example, if you have a luxurious automobile that is valued higher than the value of other belongings, you might not want to dispose of it. It might be difficult to find a buyer.

Opposition to bankruptcy discharge

Your creditor might oppose the bankruptcy filings. This is known as an adversary proceeding. The opposing party must demonstrate the existence of grounds to raise an objection.

The reasons to file an objection are a materially incorrect written statement, or misappropriation or misuse of funds in a fiduciary capacity. An objection may be made by a creditor when court orders are not followed. For instance, if, for example, you did not submit your tax documentation as required by the Bankruptcy Register, your LIT may challenge your discharge.

Debtors can respond to opposition by asking the court to reopen the case. Sometimes, the Bankruptcy Register won't take any further action. In other cases, however the trustee could require additional payment.

A person who has committed fraud in transferring title to property can also be grounds for an objection to discharge. Inability to count for the loss of assets during bankruptcy is another typical reason.

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

One of the most daunting aspects of a formal bankruptcy is the long term plan of implementation. While creditors may fight back, it is not unusual for them to do so. But patience and perseverance are the key to success. The first steps to debt-free life with the help of a credit counselor or coach. Whatever the reason, a fresh start is the best option. The trick is to stay clear of mistakes and identifying the blocks. There are many online resources as well as a help line to assist you. If you're in looking for a credit card counselor make sure you do your homework and don't go into the dark side.Seek expert advice from experts if you're in need of. An Harrisburg bankruptcy attorney is available to answer any questions you might have and assist with the legal procedure.


What exactly is Bankruptcy?

What is Bankruptcy?

If a person is in a position to pay off their debts, they can seek bankruptcy relief. Bankruptcy is a legal proceeding that's usually enforced by a court order.

Chapter 7

Unlike Chapter 13 bankruptcy, Chapter 7 allows individuals, businesses, and non-profit organizations to clear the majority of debts as in the event that they pass the criteria for bankruptcy. A bankruptcy attorney will help you determine the possibility of having your debt dissolved.

The test for bankruptcy involves the determination of your income and expenditures and if you have enough funds to pay off your debts. You may need to file a repayment plan with your creditors in certain cases. The plan may include paying down your debts in monthly installments spread over three to five year.

Your trustee might also try to take your property. It is possible to keep certain assets based on the circumstances. In some states, you might have the option of using the federal exemption system to protect some of your property.

You can get free bankruptcy legal assistance from the Legal Services Corporation. You can also get bankruptcy counseling. Credit counselors can help determine if you are qualified to file for bankruptcy and help you plan your payments. A professional is the ideal representation. In Harrisburg an bankruptcy lawyer can assist you understand the legal requirements of filing bankruptcy.

According to the Bankruptcy Code, you must submit a proof of financial responsibility with the bankruptcy court. The certificate must prove that you've completed a course in financial management. A profit and loss statement might be required. This can help your lawyer decide if you can retain your home.

Chapter 7 is not able to permit the repayment of certain obligations. These include child support , the alimony payment, as well as loans guaranteed by a governmental unit.

Chapter 7 bankruptcy is a popular form of bankruptcy. But, there are some drawbacks. While it may give you a fresh start, it isn't a quick solution to your financial problems. Certain debts, including tax debt and student loans can't be discharged under chapter 7.

Chapter 13

The process of filing a Chapter 13 bankruptcy generally requires the debtor to create a plan for creditors to pay over a period of three or five years. The plan is approved by a bankruptcy judge, and a judge can amend the plan as needed. In most cases, the debtor's monthly income is used to determine the repayment plan.

The person in debt who fails to pay payments is likely to be barred from Chapter 13 relief. The debtor may be required to change into Chapter 7 bankruptcy. The debtor cannot make personal or business loans during the course of a Chapter 13 bankruptcy case. You may have to pay back certain taxes.

The debtor is required to provide the Trustee with the copy of their income statement and evidence of their financial management. They are also required to submit copies of 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 be noted in the report. The Trustee may also be against late claims. The court will accept the plan, and the claims will be dismissed.

The first payment must be paid within 30 days of filing bankruptcy. The Trustee should also be given a copy of the payment receipt from the attorney of the debtor. The debtor might also amend the plan.

If a debtor is late with a payment and the Trustee is not able to make a payment, they will send them a notification. This notice is an "stop signal" for creditors. It is illegal for creditors or debt collectors to attempt to collect the debt.

If a debtor is late on many payments, they could be unable to make future payments. If a debtor is not able to make the payments, the creditor may ask the court to allow them to recover the debt. The court could also permit creditors to seize the vehicle.

If a debtor fails to make the payment, they must contact an attorney immediately. They might be able change the repayment plan to compensate for the missed payments. A bankruptcy judge may be able to convert the case to Chapter 7.

Chapter 13 bankruptcy is designed to aid those who require assistance with paying their debts. It helps co-signers stay safe and stops repossessions and foreclosures. In the end, it will assist a debtor in getting back on the right track and prevent future debts from becoming an issue.

There are many reasons why people file bankruptcy.

Reasons Why Consumers File Bankruptcy

People who seek bankruptcy often due to a variety of causes. These include poor personal finance choices, medical debt and home mortgages. A lot of people file multiple times, which can cause a lot of stress for their financial position.

Being in debt for medical expenses is a major issue for millions of Americans. Unexpected medical bills can quickly escalate into a financial disaster. Patients with poor health are more likely to be impacted by unanticipated medical bills.

The United States spends a lot of dollars on health care. The United States spends more per capita on health healthcare than any other nation. Yet, millions of citizens are uninsured or underinsured, making them at risk of paying huge medical expenses.

A lot of Americans are living from pay to pay. A recent study found that nearly one fifth of American households are not able to pay for essential medical expenses. However, fortunately, Congress has passed legislation to help with the upfront costs of healthcare.

The Affordable Care Act capped out-of-pocket spending. This has decreased the cost of medical debt for a few Americans however, many have a difficult time paying for their medical expenses.

Furthermore, the number medical debt collectors has increased. They may be able to sue you, initiate legal action against you, or even place a lien against your real estate.

Often, medical debt collectors will tack on extra fees to debts that are not backed by interest. They may also add unpaid medical bills to your credit report. Medical bills that are not paid can stay on your credit file for seven year.

The best way to avoid medical debt is to be aware of it. best way to handle it. If, however, you are in a situation wherein you can't pay your bills, you may need to file for bankruptcy.

One of the most frequent reasons people file for bankruptcy is due to medical debt. The Consumer Bankruptcy Project estimates that about half of all bankruptcy debtors pay medical bills in their bankruptcy.

Taking out a home mortgage is a significant financial commitment. No matter if you're purchasing a house on your own or with a partner, you'll need to ensure you're aware of all the expenses involved. It's not a good idea to end up with a mortgage you can't afford.

The most important question to consider before taking out a mortgage is which kind of mortgage is right for you. Thankfully, there are several alternatives available. There are numerous choices.

You can pick a traditional loan that has an adjustable or fixed interest rate or a VA loan, or an FHA loan. A loan could be short or long-term.

The best way to figure out the type of mortgage that will most suit your needs is to gather all the relevant information. This includes the conditions and terms of your loan. It's also beneficial to include a local bankruptcy attorney in the mix to make sure you know all of your options. An Harrisburg lawyer is available to address your concerns.

There are other factors to think about, including whether you're eligible to receive loans. It is possible that a VA loan is available to military personnel. A USDA loan is available to residents of rural areas. It is also important to examine the most trustworthy mortgages.

The process of getting a mortgage after bankruptcy isn't easy however, it's not impossible. As long as you're ready to do the work and work hard, you'll be able to locate a lender willing to work with you. First, you will need to have excellent credit. It is necessary to submit a preapproval application. The best way to achieve this is to find the lowest cost.

The filing of a bankruptcy can help you stop wage garnishment. You can actually recover wages garnished within 90-days after filing.

Different laws on wage garnishment apply to various types of debt. For example, alimony and child support can be garnished more frequently than taxes. The amount of money garnished should not exceed 25% of an individual’s disposable income.

You are able to garnish as much as you like in accordance with the state. Some states have exemptions for medical or government aid. Similarly, there are limitations on the amount that can be garnished from personal property.

Most states allow people to request an order from the court to stop garnishment of wages. You need to prove exempt income to request an exemption. For instance, you can, claim your Social Security benefits to be exempt.

There are many other options to stop wage garnishment. You can utilize credit counseling services to assist you to negotiate the payment plan. A credit counseling company could charge you a fee for its services. However, it may also be able to reduce the amount you must pay.

Bankruptcy and Collections Do you need to repay debt following bankruptcy?

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

There are some things you must know about debt collection regardless of whether you are in bankruptcy. 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. The debts you owe need to be settled. To pay your creditors, you may have to sell your house or vehicle. Your assets and debts are reviewed by a bankruptcy trustee who will determine if your obligations can be discharged.

A judge may not pay a debtor's dues because of a variety of reasons. The main reason for refusing to release a debt is due to the fact that the creditor might have assets hidden from the public eye. In this instance the creditor is able to prove that the debtor lied when they applied for a loan.

The bankruptcy court could not release the debt due to the fact that the debtor did not disclose all their assets. However, the court embraced the position of the debtor, and said that insufficient funds were available to pay the outstanding debts.

The Town took action against Debtor in a District Court Action and a Compulsory Counterclaim. They also attempted to foreclose municipal liens. The Town sought to recover the debts discharged through SS 524.

Collection efforts

When you file for bankruptcy it is possible to receive phone calls from creditors. These attempts must be stopped by law. You are protected by federal and state law. If you are being harassed, you may have a good argument to file a lawsuit against the creditors.

The Fair Debt Collection Practices Act (FDCPA) defines the legal requirements debt collectors have to follow in order to ensure compliance with law. A judge can also impose sanctions on collectors who do not follow the law. If a debtor is caught breaking the law, the collector may be fined or be required to pay attorney's costs.

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

Also, you are protected from attempts to collect your debts with an automatic stay. This is a court order which will stop creditors collecting your credit card.

Discrimination in governmental units and private


No matter if you're an employer of a government or private sector, the laws of the land prohibit you from making any decision based on a bankruptcy filing. It is not possible to exclude bankruptcy filings from government loan programs. It is still possible to consider them when evaluating a candidate's creditworthiness.

The best method to prevent discrimination of this kind is to educate yourself on the law and the legal pitfalls. It is also possible to have a lawyer assist you in the case. A Harrisburg bankruptcy lawyer will assist you in understanding your rights. This is especially true for employers with operations in multiple jurisdictions. The third circuit was considerate enough to address an issue that is timely and pertinent for private sector employers.

The Third Circuit ruled that the bankruptcy law's most widely-known acronym was a non-starter. The result is that bankruptcy cannot be deducted from taxes. You can't exclude bankruptcy people from loan programs run by the government. And you can't stop bankruptcy filings from receiving government benefits. The positive side is that, if you're not able to file for bankruptcy, you aren't able to bring a lawsuit against a private or governmental employer for discrimination.

Identifying the debt collector

It can be difficult to spot the debt collectors in bankruptcy. Scammers often claim to be debt collectors for creditors, and are looking for quick cash. They may use a variety of tactics to convince you to settle the amount owed.

If you find yourself in this situation, you may want to get legal advice. A creditor can be sued for damages when he or she breaches the law. A court case could be required to reopen bankruptcy procedures. This court proceeding could require you to hire a lawyer.

If you're unsure if your debt can be discharged, contact your bankruptcy lawyer. This can help you get the right decision for your future. You might be able to negotiate a lower payment with your debt collector.

A bankruptcy discharge order prohibits creditors from pursuing collection actions on dischargeable debt. The court can also issue an an injunction to prevent creditors from harassing or collecting on discharged debt. This could stop wage garnishments, car repossession, and foreclosure.