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Harrisburg Bankruptcy, Estate Planning And Personal Injury Blog

Does Filing for Bankruptcy Affect Your Job?

Bankruptcy may have a stigma attached to it, but this stigma has more to do with applicants’ preconceived notions about the process than it does with legal or even social consequences. Ultimately, bankruptcy is likely to have less effect on your job than the seemingly unstoppable stream of debt collectors’...

What Assets Do Not Pass through Probate in Pennsylvania?

When you pass away, your wishes will be upheld in accordance with your estate plans, which generally include a will, a trust or trusts, and other financial tools that are beneficiary-based. If, however, you failed to engage in estate planning, your legacy – or the assets you amassed over the...

Updating Your Estate Plan

Your estate plan amounts to the work you put into protecting your legacy, which reflects how you will continue to help support your loved ones after you’re gone. In other words, having a well-considered estate plan in place helps to ensure that everything you’ve worked so hard to acquire will...

When a Driver Who Causes a Car Accident in Pennsylvania Is Underinsured

If you’ve been seriously injured by an underinsured motorist in Pennsylvania, it makes the path forward toward fair compensation that addresses your complete physical, financial, and emotional losses that much more complicated. Fortunately, there are steps you can take to offset your losses, and an experienced car accident attorney in...

How Do I Know If I Should File for Bankruptcy?

Bankruptcy can give you a fresh financial lease on life by allowing you to offload debt, stop creditors from hounding you, and even stop your home from being foreclosed on or your car from being repossessed. While bankruptcy will affect your credit, it can also afford you firmer financial footing,...

What Is a Will?

A will is a key element of your overall estate plan, which directly addresses your financial legacy. Your will is a legal document that will guide how your assets are distributed upon your death. If you don’t have a will in place, any asset that isn’t otherwise addressed – such...

Does Filing for Bankruptcy Affect Your Credit Score?

If you are considering filing for bankruptcy, it means that you can’t keep up with your debt load, which can happen because of many unexpected events. Prime examples include job loss, divorce, and serious illness or disability. The fact is that bankruptcy will affect your credit score, but carrying immense...

How testators can arrange for charitable giving in an estate plan

People in different life situations have different estate planning priorities. Many adults simply want to leave as much as they can for their closest family members. Others want to leave behind a charitable legacy. Someone who faced unique challenges in life might want to start a scholarship fund for individuals...

How is medical treatment paid for after an auto accident?

Every trip in a passenger vehicle comes with a degree of injury risk. While the vast majority of trips are uneventful, the potential for a crash is always there. Most Pennsylvania drivers make safety their top priority and do their best to stay as safe as possible while on public...

What will happen to your business if something happens to you?

The future is uncertain. People never know when they might have a health issue or experience a car crash. Many adults with families decide to put together estate plans specifically because they worry about vulnerable loved ones. An estate plan helps ensure that dependent family members receive proper support and...

Whiplash from a car wreck can be worse than people expect

In the hierarchy of potential car crash injuries, soft tissue injuries are relatively low on the scale. Unlike broken bones and other serious injuries, whiplash is often a health issue that resolves on its own with minimal medical intervention. Some people don’t even bother seeing a doctor at all when...

HELP! My ex just filed for bankruptcy

Domestic disputes are complicated enough without adding bankruptcy on top of them. While not always the case, often the filing is done to obtain a perceived advantage in the conflict. But that advantage does not always materialize if you respond appropriately. Bankruptcy provides honest but unfortunate debtors with a fresh...

Can I discharge my Harrisburg support obligations in bankruptcy?

The simple answer is probably “no.” While one purpose of bankruptcy is to give honest debtors a “fresh start,” Congress defines the extent of that fresh start through exceptions to discharge (that legal forgiveness of debt most filers are looking for). One of those exceptions is debt “in the nature...

Is your estate plan up to date for 2024?

Planning your estate is a critical aspect of wealth management that should never be overlooked. As you step into 2024, it’s imperative to reassess and update your estate plan to confirm it aligns with your current circumstances and desires. Remember, estate planning goes beyond just drafting a will; it involves...

The estate tax exemption increase for 2023

For 2023, Americans in Pennsylvania and other states have received an increased federal estate tax exemption. The federal government adjusts the amount yearly to compensate for inflation, which can significantly affect Americans with a large estate to leave to their heirs. The following summary covers the amount of the increase...

Small businesses are feeling the pinch

Running a successful small business these days challenges even the best entrepreneurs. Between tighter labor pools, smaller cash reserves and sticky inflation increasing costs, margins are becoming smaller and concerns are growing stronger. When you try to borrow your way through this downturn, you are met with higher interest rates...

3 reasons people choose to add trusts to their estate plans

Individuals who weather truly unusually life circumstances may need to put more thought into estate planning than those with basic needs. For example, wills are excellent tools for designating specific beneficiaries and appointing a guardian that someone trusts to support children after an adult’s passing. However, wills have many limitations...

Why choosing the right business structure is so important

There are many different legal business structures available to someone who is looking to start a company. Some people start simple partnerships or sole proprietorships because they want as much direct control over the organization as possible. Others may start limited liability companies (LLCs) or even corporations. People in Pennsylvania...

Questions to ask when choosing a Pennsylvania executor

Choosing an executor for your Pennsylvania estate is a serious decision. The executor is the person who handles your final affairs after your death. There are several things to consider before choosing who will fill this role. Is the person trustworthy? Estate planning is when you consider the type of...

SAVE Plan announced by the Department of Education

The U.S. Department of Education recently announced the Saving on a Valuable Education (SAVE) Plan to assist student loan borrowers with direct loans in paying their loan balances. Similar to other Income Driven Repayment (IDR) plans, monthly payments are calculated based upon your income and family size. However, the method...

Without student loan forgiveness, what are my options?

The US Supreme Court just ruled that the Department of Education is not authorized to forgive a large portion of their borrowers’ student loan debt. Multitudes of borrowers in the Harrisburg area now face budgeting student loan payments in addition to their other financial obligations. They will join the 43...

Prepare for changes to your credit score after bankruptcy

Pennsylvania residents who are considering bankruptcy to clear overwhelming debt are often stopped in their tracks by fear about what it will do to their credit score. This should not be dismissed. However, there are significant benefits to bankruptcy even with a lower credit score after the fact. Know the...

You should not believe everything you hear about bankruptcy

People who have had no experience with bankruptcy are often poorly informed about what this type of debt relief can and cannot accomplish. If you are pondering whether to file for bankruptcy protection, here are five common myths to help you separate fact from fiction. 1. Bankruptcy immediately makes you...

Will I lose my home if I file bankruptcy?

You may have heard that you cannot protect equity in your home when you file bankruptcy in Pennsylvania. This is not the case. Under federal bankruptcy laws, you can protect up to $23,675 in equity for a primary residence when you file Chapter 7 bankruptcy. The purpose of filing bankruptcy...

Why you should think twice before using payday loans

If you are thinking about taking out a payday loan because your paycheck was not enough for you to cover your car note, mortgage or electric bill this month you might want to reevaluate your decision. On the surface, payday loans seem like the perfect solution. They make it possible...

Why older couples should review their wills

Most married couples name each other as beneficiaries in their wills. While this approach may make sense when both partners are young and healthy, it may not later in life. Unintended consequences can happen when older couples do not review and make appropriate changes to the estate plans they had...

What’s the best time to create a will?

When it comes to the concept of a will, many people don’t think it’s something they need to worry about until they’re older. However, this is not always the case. A will is an important document that you can create at any time in your life after the age of...

What you need to know about common bankruptcy myths

When you are in the middle of a financial crisis in the Harrisburg area, finding your way out might seem impossible. Creditors are calling your phone nonstop and mailing demand letters to your home. However, you do have options, and one of them may be bankruptcy. Due to common misconceptions,...

What you need to know about alimony and taxes

Many people in Harrisburg cannot wait for the ink to dry on their divorce papers. They may feel so frustrated with their situation that they rush and agree to things before thinking about how the consequences may affect their tax situations once they are single. It is not uncommon to...

What can you expect at the meeting of creditors?

When individuals file for bankruptcy, they may not necessarily have to meet with a judge. In the state of Pennsylvania, these people will need to go through a 341 meeting, where the debtor appears and answers questions from a group of trustees. A lot of people think they have a...

What are the advantages of Chapter 7 bankruptcy?

When you face overwhelming debts, you probably wonder if you’ll ever pay it off. For those with thousands and thousands in medical debt, or credit card debt, the stress of mounting debt can be overwhelming. That’s one reason why some decide to file for bankruptcy, even though it will affect...

Waiting too long to file bankruptcy

Some people with serious debt problems try other ways to fix the problem before considering bankruptcy. Unfortunately, some of those fixes can result in the loss of assets that could have been saved by filing bankruptcy sooner. For a person with serious debt problems, it’s good to explore all of...

Updating your will is essential

You have heard the stories about friends, relatives and celebrities who failed to create estate plans, leading to avoidable legal imbroglios. With confidence, you kick back and relax, knowing you have a thorough estate plan that includes a detailed will. You prepared, and, now, are set for years to come....

Understanding Pennsylvania’s inheritance tax

You want to make sure your loved ones are taken care of even after you are gone. A proper estate plan is a great way to ensure the individuals you designate receive set portions of your estate. In the state of Pennsylvania, your survivors will face an inheritance tax. Knowing...

U.S. credit card debt goes below $1 trillion for first time since 2017

Credit card debt is one of the hardest to repay bills for millions of Americans. After losing your job or another financial catastrophe, paying for everything with your credit cards may be your only option. The bills spiral past what you can afford. The interest charges become unbearable. Soon, you...

Things to know about bankruptcy during divorce

Some life-altering events can trigger bankruptcy, and a divorce is one of those events. Depending upon certain factors pertaining to the divorce process, the effects of bankruptcy may vary. In order to make the best decision, spouses should seek to understand the various aspects of bankruptcy. There are a few...

The myths and taboos of preparing a will

Estate planning is an opportunity to begin a new life. People rely on each of us to some degree, but you decide how much you assist others when you pass on. Your assets in Pennsylvania get used only as you tell your trustee to use them. There are some taboos...

The importance of hiring an estate planning attorney

Ideally, you’ll hire a Pennsylvania estate planning attorney to help with the process of drafting a will, trust or other plan documents. Furthermore, it may be in your best interest to have an attorney review those documents at least once per year. Attorneys can create custom documents The template estate...

Taking the Chapter 7 bankruptcy means test

Congress made it more difficult to obtain a Chapter 7 bankruptcy in 2005 when it introduced a means test as part of the Bankruptcy Abuse Prevention and Consumer Protection Act. The test is designed to make sure that Chapter 7 bankruptcies are only granted to individuals in Pennsylvania and around...

Rebuilding your credit after bankruptcy

While bankruptcy may give you relief from your debt now, there may still be a long road ahead of you. Rebuilding your credit can be an essential way to get your finances back on track. Your credit after bankruptcy After you have filed for bankruptcy, the filing will stay on...

Protecting separate property in a second marriage

Many people enter second marriages assuming that the property they bring to the marriage will still be theirs if the marriage ends in divorce. Unfortunately, this isn’t always the case. Things you do during your marriage can cause separate property to become marital property-and subject to division with your spouse...

New developments in student loan bankruptcy discharges in Harrisburg, PA

Probably the most difficult task in bankruptcy is discharging student loans. While bankruptcy is offered to the innocent, but unfortunate, debtor in order to obtain a “fresh start,” Congress defines that fresh start. And Congress did not include forgiving most student loans. In fact, over time, the trend has been...

Myth: Estate planning is only for older people

When you picture a couple going into a lawyer’s office to discuss estate planning, what image springs to mind? Perhaps the couple is silver-haired, retired or close to retirement. That makes sense, as estate planning is extremely important for that demographic. However, estate planning is also important for people at...

Mistakes to avoid when filing for bankruptcy

Filing for bankruptcy can provide you with a way to deal with your debts and begin getting your finances in order. To make sure you reap the full extent of the benefits this process offers, it is important to do it properly. There are some common mistakes people make when...

Managing the potential issues with marriage and bankruptcy

If engaged, you are no doubt looking forward to planning the wedding. However, you may hesitate to set the date because your intended has declared bankruptcy. How will this affect you? Is the proposed marriage in jeopardy? Will bankruptcy be a dealbreaker? Dispelling a myth Remember, your credit score is...

Key considerations for a valid prenuptial agreement

You hope for a lasting marriage, but that may not be an option. When some individuals think of a prenuptial agreement, they think they are planning the end before it begins. However, this is not the case. A well-crafted prenup helps to protect both parties and to encourage an amicable...

Key aspects of spousal support in Pennsylvania

During a divorce, the merged lives of two parties must become separate again. As such, there are several different elements to the divorce process. Spousal support is one of the main elements that many divorcing couples face. In the state of Pennsylvania, there are a few key aspects that divorcing...

Is debt consolidation a good deal?

To many people, debt consolidation sounds like a solution to debt problems. By consolidating credit card debt into one loan, debtors can reduce their monthly payments and pay a lower interest rate. Unfortunately, the promises of debt consolidation often do not pan out. Why Debt Consolidation Often Doesn’t Work While...

Is bankruptcy right for you?

If you are falling behind in your bills and struggling to pay off delinquent debts, then bankruptcy may be an option for you to consider. Many people in Pennsylvania file for bankruptcy every day. The opportunity to have certain debts discharged or erased to gain a new financial start is...

Ignoring debt does not make it go away

Whether you have a mortgage, credit card balances, student loans, medical bills or another type of debt, you know how crippling it can be. According to credit card company Discover, Americans have an average household debt of more than $130,000. If you feel like you are sinking further into debt,...

How will you handle financial issues for property division?

In many marriages, one party usually manages more of the financial responsibilities than the other. For example, your spouse may pay the household bills and make the investments. When you decide to end your marriage, you need to get up to speed on financial matters. How should you prepare for...

How to know if you have waited too long to file for bankruptcy

Bankruptcy can impact any entity, including municipalities. A township in Pennsylvania has struggled ever since a judge ordered the community to pay an oil and gas company over $100,000 in legal fees after losing a lawsuit. Local officials have argued such an action could bankruptcy the town. Bankruptcies are tough...

How to handle the emotional impact of bankruptcy

No entity, no matter how big or small, is immune from bankruptcy. Recently, Sears has made headlines for having to file for bankruptcy, which has necessitated the closing of many of its Pennsylvania locations. The stores in Pleasant Hills, Allentown and other cities around the state will have to close...

How to escape payday loans

If you have fallen so far behind in your mortgage and car note payments in Harrisburg that you resort to using payday and cash advance loans, know that you are not alone. Many people just like you use them to help keep them afloat while they are in between paychecks....

How to avoid mistakes concerning beneficiary designations

One of the objectives in reviewing your estate plan is to make sure the beneficiary designations for all your assets are current and correct. The way you hold your assets will be important in determining which, if any, will be subject to probate when you pass away. Start with the...

How bankruptcy can help you deal with delinquent debt

If you have fallen on hard times in Harrisburg and are no longer capable of paying your credit card debts and other financial obligations, there is a good chance you are looking for a way out of your situation. You have tried every possible solution you could think of, including...

Help your executor do a good job managing your final affairs

The individual you choose to manage your final affairs might be your spouse, another relative or even a close friend. Give it some thought. You should prepare a list of requirements for the person you eventually name in your will. Once the perfect candidate is chosen—your nephew Fred, for example—you...

Has a health crisis got you reeling from debt? Relief is available

If your medical bills are overwhelming, you are not alone. Did you know that 60% of all bankruptcies either “very much” or “somewhat” involve medical debt? Look: a health scare shouldn’t result in an economic tailspin, but that’s the situation many people are facing. Even people with good insurance are...

Facts about bankruptcy in Pennsylvania

When things get really tough, sometimes filing for bankruptcy can be the best option to get your finances under control. While there are many misconceptions about bankruptcy, it is an important tool that most people who experience financial difficulty would benefit from knowing more about. What is bankruptcy? In a...

Estate planning and second marriages: What you should know

It is not uncommon for some people to get married a second, third or even fourth time in Harrisburg. But when it comes to estate planning and second marriages, it can add another layer of complexity to an already confusing situation. You want to provide for your law members, but...

Does Chapter 7 discharge all debts?

A debt situation could become so overwhelming that paying off obligations appears impossible. Filing for bankruptcy becomes a strategy the debtor may find necessary. Each bankruptcy case comes with its unique particulars, and some may find Chapter 7 preferable. However, Pennsylvania residents looking for Chapter 7 protections must realize not...

Do you need to change custody arrangements for your child?

Circumstances change in life, and even if you feel your divorce agreement covered all the bases, you may need to modify it. Child custody is one of the issues that most often comes up. The requested change could be due to a matter that involves either you or your ex,...

Do you need an attorney for an uncontested divorce?

An increasing number of people have begun representing themselves in court. Many people take this route to save money or because they believe they would not benefit from a lawyer. However, there can be hundreds of tasks you need to perform to prepare for a court date, so even when...

Division of property during divorce in Pennsylvania

A large part of the divorce process is separating assets between the two parties. It may be helpful to become familiar with the property division process. Certain states distribute assets differently than others. In the state of Pennsylvania, a few aspects contribute to the division of property. Equitable distribution state...

Discharging tax debts in bankruptcy

There are many myths about bankruptcy and taxes. Some experts say that tax debts are not dischargeable. Others say they are. In reality, some tax debts are dischargeable while others aren’t. Here are answers to common questions about tax debts and bankruptcy. Can I discharge income taxes? You can discharge...

Different ways to divorce in Pennsylvania

You know you want a divorce, but do you know how you want to get the divorce? There is more than one way to do it in Pennsylvania, and understanding each type can help you know which approach is best for your situation. Mutual consent Mutual consent means that you...

Debt relief or bankruptcy: Which is right for you?

When you find yourself in escalating debt with little way forward, understanding the best options available to you can be difficult. That’s especially true when every option will still be difficult, as is often the case for those whose debt has become unmanageable. At that point, debt relief and bankruptcy...

Common mistakes to avoid when filing for bankruptcy

If you find yourself on the verge of filing for bankruptcy, you are not alone. Many people in Harrisburg turn to bankruptcy every day because they can no longer afford to their pay bills. Whether your situation is because of a recent divorce, serious illness, job loss or some other...

Common bankruptcy myths

The decision to file bankruptcy is a stressful one. Although the number of bankruptcies in the United States is on the decline, it’s estimated that more than one million people will file a Chapter 7 or Chapter 13 this year. A bankruptcy can help you get past a financial setback,...

Choosing between chapter 7 and chapter 13

Most Pennsylvanian residents do not want to be in a position where they have to file for bankruptcy. They want to feel financially stable without help from others or to depend on the legal system for guidance. However, the bankruptcy process helps millions of Americans each year, especially amid the...

Chapter 7 filers should prepare to attend the 341 meeting

Perhaps you have decided that your best course of action for getting out of debt is to file for Chapter 7 bankruptcy. You have taken the means test to confirm that you qualify, so once you have filed your petition, the next step is to prepare for the upcoming 341...

Can you keep your home if you file for bankruptcy?

Bankruptcy is an effective solution to insurmountable debt for many people, but it is a common misconception that filing means you will lose everything you have to your name. On the contrary, filing for bankruptcy can help you retain some assets and get your debt under control. Understandably, you may...

Can you discharge student loan debt in bankruptcy?

The amount of student loan debt in the United States has become a genuine crisis. In 2018, the total amount of student loan debt reached $1.5 trillion. Numerous people in Pennsylvania have to contend with this, and sadly, many are unable to ever completely eliminate the debt. As a result...

Can I keep my home even if I file for bankruptcy?

If you are struggling with overwhelming debt and are unable to pay your mortgage, you may be concerned that you could lose your home. Banks are usually quite swift in foreclosing on homeowners who miss their mortgage payments, and depending on how many payments you have missed, you may be...

Blended families and estate planning

For a blended law, a simple will can be anything but simple. It can lead to unexpected outcomes, such children being disinherited by a stepparent. Blended families need to take steps in their estate plan to protect the financial interests of children from a prior marriage. What can happen if...

Before you start your estate plan: Understanding probate

People refer to probate like it is a bad thing that you should avoid. However, probate is simply a legal process, and it is not inherently good or bad. Whether you should take steps to avoid it and how you may do so depends largely on the estate you will...

Bankruptcy might include student loan debt soon

Many people in Pennsylvania are still making payments on student loan debt that they acquired more than 10 years ago. Big universities can run people into massive debt that is difficult to repay even with a high-paying job. If you have other debt besides student loans, your financial situation can...

Bankruptcy laws and a fresh financial start

Facing the possibility of bankruptcy can be a scary experience both from financial and emotional perspectives. If you are considering the need to file for bankruptcy, the following information regarding Pennsylvania law may provide you with some insight into the process and the next steps you may decide to take....

An estate plan can cover all the bases in your life

The estate plan you prepare will be unique. If you are giving thought to the process, you may only want a will at this time. On the other hand, you may be ready for a living trust or some other estate planning tool. Estate planning can be as basic as...

Alternatives to business bankruptcy

Countless factors can lead a business to experience financial difficulties. From the increased cost of materials to an expensive workforce to other economic factors beyond their control, business owners can witness the slow decline of their profitability. While the Bankruptcy Code offers strong options, filing for bankruptcy might not always...

6 mistakes to avoid if you are named executor in a will

When named as an estate executor, it is gratifying to know that the deceased considered you trustworthy and capable of carrying out his or her last wishes as instructed in the will. However, the job is exacting. It may demand much of your time, depending on the complexity of the...

5 ways to emotionally deal with divorce

Divorce can be taxing on every area of your life. It can affect your relationship with your children, your productivity at your job and even your ability to get out of bed in the morning. While you may have pictured “until death do you part,” that isn’t always the reality....

3 estate planning tips for new parents

If you’re a new parent in Pennsylvania, you might have never thought about estate planning before. However, an estate plan can be an important way to protect your child in the event that something happens to you or your spouse. Here are three things that you can do to get...

3 common yet avoidable estate planning mistakes

Estate planning is not a popular subject, and it is easy to understand why. Nobody wants to think about the time when they inevitably pass, but it is important to face the future so that your loved ones are adequately cared for. To this end, there are several common mistakes...

Mortgage terms you need to know in Harrisburg, PA

Hopefully you have improved your financial standing after reading my Financial Terms blog. After a few adjustments suggested therein, you may be ready for the big prize: home ownership in the Harrisburg area. But just like there are terms that you need to understand to achieve financial health, there are...

2 ways that estate planning can protect people from creditors

Too many people have a limited view of what the process of estate planning has to offer. They think about what will happen after they die, which is easy to avoid addressing. It is important to understand that the benefits of estate planning extend well beyond having control over one’s...

Will I lose my house if I file for bankruptcy?

Many people in Pennsylvania and around the country put off filing for bankruptcy because they are worried about losing their homes. This sometimes occurs in a Chapter 7 bankruptcy, but it does not happen very often. This is because federal or state exemptions protect a certain amount of home equity...

CCW featured in recent PennLive article

From PennLive: Merit Marketing Inc. at 121 Locust St., formerly known as Sacunas Incorporated, filed for Chapter 7 bankruptcy last month. PennLive reached out to the company’s attorney, Robert Chernicoff, of the Harrisburg law firm, Cunningham, Chernicoff & Warshawsky PC. “The economic times are such that the company is unable...

How do Chapter 13 repayment plans work?

Pennsylvania residents having difficulty paying their debts have several options to manage them. One of those involves filing for Chapter 13 bankruptcy. Under this type of bankruptcy, the court approves a repayment plan to help you discharge your debts over a three-to-five-year period. Chapter 13 allows you to keep large...

Financial terms you need to know in Harrisburg, PA

In order to walk the walk, you need to talk the talk. Therefore, before you get your finances in order, you may need to understand some financial terms. That way you will know the rules-of-the-road to get where you want to be. Understanding what an offer includes is critical to...

The fate of your bank accounts after you die in Pennsylvania

You can’t take anything with you when you die, but you can actually dictate everything that should happen with your body and properties in Pennsylvania. For example, your heirs might get what’s left in your bank accounts, or the government might take them away. It all depends on the account...

When is the best time to create a will?

Life can take so many unexpected twists and turns. And as you age, you want to prepare for them. Part of that preparation may involve creating a will, but how do you know it’s the right move for you? That can depend on multiple factors. How old do I need...

Why use a power of attorney?

If you’re like most people, you probably assume that having a will is enough to meet your estate planning goals. While that may be the case, there is also a chance that your plan will need additional components such as designating an agent under a financial power of attorney. This...

Dispelling Bankruptcy’s Myths (Myths 6-10)

In the last blog we explored 5 myths about bankruptcy that might be holding you back from seeking financial help. I hope it cleared up some questions you may have. We will finish up with 5 more myths that may be occupying your belfry. MYTH #6: Bankruptcy Erases All Of...

Dispelling Bankruptcy’s Myths (Myths 1-5)

In the Halloween spirit, I will try to unspookify bankruptcy by casting out misunderstandings about this valuable financial tool. While everyone is probably familiar with rumors about the misuse of bankruptcy, there are even more cases where the proper use of the Bankruptcy Code with a bankruptcy attorney created real...

Will I lose everything if I file bankruptcy?

It has long been said that the principal purpose of bankruptcy is to give a “fresh start” to the “honest but unfortunate” debtor. Wetmore v. Markoe, 196 U.S. 68 (1904). To that end, the Bankruptcy Code protects debtors from becoming destitute and dependent upon the public dole. While the Bankruptcy Code...

Student loan forgiveness and how it could affect you

On August 24, 2022, the U.S. Department of Education announced targeted student debt cancellation programs to address the continuing impact of COVID-19 on borrowers’ income. The program cancels debt held by the Department of Education (click here and sign in to see if your loans are affected since bank and other loans are...

Mortgage foreclosure alternatives

In the last blog, we explored legal safeguards in place to protect your residence from foreclosure. This blog will explore remedies beyond legal safeguards within foreclosure litigation to save your home. So even if you cannot cure all of the arrears prior to a Sheriff Sale, alternatives exist to keep...

Residential mortgage foreclosure protections

A man’s (or woman’s) home is his (or her) castle. In recognition of this adage, Pennsylvania state law provides various protections to homeowners when marauders (including mortgage companies) attack. While most of the rights and obligations of the parties are contained in the Mortgage Note and Mortgage, residents have protections...

How to read a mortgage escrow statement

Most federally backed mortgage lenders are required to provide annual statements regarding the status of each escrow account it services under §2609(c)(2) of the Real Estate Settlement Procedures Act. While this section tells mortgage servicers what to do, §1024.17 of Regulation X tells them how to calculate your escrow payments. The first step...

Income-driven repayment plans for student loans

Income-driven repayment plans may be a good way to manage student loan debt. If the Loan Simulator indicates that you will do better with an income-driven repayment (IDR) plan, you still have plenty of options. The following options are available: Revised Pay As You Earn Repayment (REPAYE) Plan Participants pay...

Judgments

So you fell behind on your credit card payments and now the credit card lender has sued you. While you should prepare for a defense as soon as possible, this blog may have reached you too late and now they have entered a judgment against you. If the suit was filed...

Traditional repayment plans for student loans

So, you are beyond the need for a deferment or forbearance in your student loan payments and now you are looking for a long-term solution to paying your student loan balance. Most of your federal student loans offer several options for repayment depending upon your circumstances. Some are considered “traditional”...

Real estate tax sales

If you own your home or any other real estate in Pennsylvania, your county, municipality and school district probably assess a real estate tax. For example, if you live in Harrisburg, you will be assessed a real estate tax by Dauphin County, the City of Harrisburg and Harrisburg School District....

Forbearance in student loan payments

If you do not qualify for a deferment as we discussed in our last blog, you may qualify for a forbearance. Optional forbearances for direct, FFEL loans and Perkins loans can be granted in the discretion of the servicer for: financial difficulties medical expenses change in employment other reason acceptable...

Federal taxes: Offers in compromise

Few mailings strike more fear in the hearts of taxpayers than a notice from the IRS that taxes are due. When a balance is owed, immediate attention to the IRS notice could resolve what could be otherwise unnecessary anguish. While the task may seem daunting, an experienced professional can properly...

Deferment of student loan payments

So, you cured your defaulted payments under your student loans (see prior blog if not), and you are ready to tackle the daunting task of affording your future student loan obligations. Provided you are willing to work with your servicer, several options are available through the Department of Education to...

Bankruptcy: What debts can and cannot be discharged

Filing for bankruptcy in Pennsylvania is one of the best ways to deal with debts and have a clean financial start. Usually, the court will dismiss some of your debts to make things easier for you, but there are some debts you must pay. More on this below. Types of...

Curing defaults in student loans

If you went to school beyond high school, chances are student loans went with you. Whether they were federally backed loans or private loans, an effective strategy to repay these student loans is essential for your financial and mental health. If you feel like you hit a patch of quicksand...

Understanding beneficiary designations in Pennsylvania

Estate planning is important for everyone, but it’s especially important for those with loved ones who may be dependent on them. One of the most important estate planning documents is a beneficiary designation. What is a beneficiary designation? A beneficiary designation is an estate planning document that names the person...

What does an estate executor do?

When someone dies in Pennsylvania, their estate goes through a legal process called probate. During probate, the executor of the estate is responsible for handling all aspects of the deceased person’s property. This can be a complex process, and it usually involves certain tasks. Introducing the will to the court...

How to get your parents to create an estate plan

It’s imperative that you start creating an estate plan as soon as you become a legal adult. However, it’s not uncommon for Pennsylvania residents and others to put off estate planning as long as possible. If your parents don’t have an estate plan, it may be in your best interest...

2021 saw bankruptcy filings decline

Various economic factors may contribute to bankruptcy filings. If the economy takes a downturn a particular year, the number of bankruptcies might increase. However, challenging economic times might not always result in increased bankruptcy filings. And the challenges could be disproportionate as Pennsylvania could experience economic growth while other states...