Blog Posts - Bankruptcy
Is There a Trustee in Chapter 11?
Unlike Chapter 7 bankruptcy, where a trustee takes control of the debtor’s assets and liquidates any available assets, Chapter 11 allows the debtor to act as a “debtor in possession.” That means the company or individual filing for bankruptcy remains in charge of its operations and assets, unless the court...
Why Do Individuals Or Companies Choose To File Chapter 11?
Individuals or companies choose to file Chapter 11 bankruptcy to keep their businesses running and give them a chance to pay off their creditors through a repayment plan. Of the three bankruptcy types used for personal and business bankruptcy filings, which include Chapter 7, Chapter 11, and Chapter 13 bankruptcy,...
What Is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is generally reserved for businesses and individuals whose debts are over the Chapter 13 debt limits. It allows business owners to continue running their businesses with a repayment plan in place that is approved by both the court and the business’ creditors. Generally, a trustee is not...
What Bankruptcy Type is Right for Me?
In 2023, there were a total of 452,990 bankruptcy filings, an increase of 16.8% from the prior year. If you are considering bankruptcy, you are likely doing so after other debt-relief options have fallen through. Given the complexity of federal law, you may be confused about what type of bankruptcy...
Can Anyone Apply for Bankruptcy?
If you are dealing with medical bills or credit card debt, it may feel like there is no way to get out from underneath it. Many people assume that if you file for bankruptcy, you will need to give up your house or car, but that is rarely the case....
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’...
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,...
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 long do bankruptcy proceedings take in Pennsylvania?
Personal bankruptcy can be a daunting and complex process, but for many individuals facing overwhelming debt, it can be a helpful and necessary step toward financial freedom and stability. In Pennsylvania, as in the rest of the United States, there are two primary types of bankruptcy under which people can...
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...
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...
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...
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...
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...
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...
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 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...
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...
Finding debt relief by filing for Chapter 13 bankruptcy
Having a decent income does not guarantee the ability to pay all the monthly bills and expenses. If your earnings each month are not enough to keep you afloat, you may want to consider whether filing bankruptcy is an option for you. If you do not pass the means test,...
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...
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...
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...
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...
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....
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...
3 different options of debt relief and which to choose
What can you do when you are over your head in debt? There may seem like no way out. While the journey is by no means simple or easy, you have different avenues to choose from to help you get back on track to financial security. Consider if one of...
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...
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...
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...
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...
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...