Bankruptcy and Debt Relief – Perspective of a Pennsylvania Bankruptcy Lawyer

Over 1 million people filed for bankruptcy last year to get relief from debt and harassing creditors. Most of our bankruptcy clients are hardworking Pennsylvania families who through no fault of their own cannot pay the bills and need to obtain debt relief. We help people who have lost their jobs, whose business has gone under, or who have suffered from a debilitating disease or accident get debt relief and a fresh start. Debt can be overwhelming. Let our firm help you. Don’t be afraid of your creditors. We can make them leave you alone. Contact us today. There is no charge for the initial consultation. Bankruptcy Highlights Chapter 7 and Chapter 13 There are two types of bankruptcies that individuals may qualify for – Chapter 7 and Chapter 13 in Pennsylvania.** Chapter 7 Bankruptcy is harder to qualify for but is generally more desirable because in general you get to keep all your stuff and the debt goes away. Chapter 7 bankruptcies are also very quick so you can rebuild your credit sooner. In Chapter 7, most unsecured debts are forgiven. In addition, some assets are exempt. In Chapter 13, you to pay your debts in installments over an agreed-upon time period, usually three to five years. In mot cases you pay back back pennies on the dollar with no interest or other penalties. Chapter 13 plans are used when the debtor makes too much money or has too many assets to qualify for a Chapter 7 bankruptcy. Top Four Reasons People File 1. Health care bills. 2. Credit Card debt/ high interest rate loans make paying off the debt impossible. 3. Illness or injury cause a dramatic decrease in income. 4.Unemployment or small business failure. Don’t give into fear and don’t be ashamed. These situations are why bankruptcy exists. We know you would pay your bills if you could. Bankruptcy will give you a new start so you can tackle debt and provide for your family. Creditors Harassing You? – Know Your Rights Consumer debt collection is regulated by the Fair Debt Collection Practices Act (FDCPA). The Act protects people from abusive debt collection practices. It places limits on how often they can call, what they can say, and how they can collect a debt. Give us a call if you are being harassed. The Act provides for $1,000.00 per violation and attorney’s fees. Consultation on FDCPA cases is free. Better yet, if you hire our firm you will never pay any fee to us to pursue an FDCPA claim. We will collect the fees directly from the creditor who is harassing you! From offices in Coudersport, Potter County, Pennsylvania, Ross and Ross, LLC serves the personal injury, bankruptcy, social security disability, divorce and family law needs of Western, Northwestern, Central and North Central Pennsylvania including Potter County, McKean County, Tioga County, Cameron County, and Bradford County.

Make Bankruptcy Less Painful by Hiring the Right Columbus Bankruptcy Lawyer

A good Bankruptcy lawyer and experienced Bankruptcy attorneys can make the task of filing for insolvency a lot easier. Turbulence in the economy is forcing many people to think about filing for insolvency. In fact, over a million and a half Americans have been doing this in the year 2009. Not all these cases arose because of overspending because factors such as huge medical bills and loss of employment as well as divorce and emergency expenses have all contributed to the problem. Types of insolvency Insolvency implies that a person or company is unable to pay their debts after the debts fall due. In most cases, insolvency refers to businesses and more particularly to the inability of the company to repay its debts. There are two types of business insolvencies; cash flow insolvency and balance sheet insolvency. The former implies that the company is not able to pay off its debts after the latter become due. The latter type implies that the company has negative assets or in plain words, its liabilities exceed its assets. It is possible for a business to experience cash-flow insolvency but at the same time it could also be balance-sheet solvent. This situation occurs when the business has non-liquid assets. Negative assets It is also possible for the business to have negative assets on its balance sheet but it could still be in a cash-flow solvent position. This situation often arises when the business has ongoing revenues that are sufficient to pay off debts. Once a person or company declares itself as being insolvent it will have to face the consequences. Some jurisdictions consider insolvency to be an offense, especially when it is a company that is declaring insolvency. Other states may not have such restrictions and these states may even allow the company to continue under special arrangements till such time as alternative options to achieve recovery can be found. The trend is for legislation to favor alternative methods to help the insolvent company wind up for good. Civil action A company that declares itself insolvent can face civil action. The best course of action for them would be to enter into debt restructuring which allows private as well as public companies and even sovereign entities to reduce as well as renegotiate its bad debts so as to improve and even restore its liquidity. Different countries around the world have worked out their own insolvency regimes and will encourage companies to use different strategies with which to overcome their condition. South Africa, for example, treats owners of the insolvent company to be held personally liable for the debts of their businesses. The United Kingdom treats insolvent companies differently and will normally put the company into liquidation. There is also provision that allows the directors and the shareholders of the company to initiate liquidation process without involving the courts of law. In the US, there is the Uniform Commercial Code which considers a person to be insolvent when they have ceased to pay their debts in the ordinary course of business or who are unable to pay off their debts that become due. Published at: https://www.isnare.com/?aid=623874&ca=FinancesA good Bankruptcy lawyer and experienced Bankruptcy attorneys can make the task of filing for insolvency a lot easier. Turbulence in the economy is forcing many people to think about filing for insolvency. In fact, over a million and a half Americans have been doing this in the year 2009. Not all these cases arose because of overspending because factors such as huge medical bills and loss of employment as well as divorce and emergency expenses have all contributed to the problem. Types of insolvency Insolvency implies that a person or company is unable to pay their debts after the debts fall due. In most cases, insolvency refers to businesses and more particularly to the inability of the company to repay its debts. There are two types of business insolvencies; cash flow insolvency and balance sheet insolvency. The former implies that the company is not able to pay off its debts after the latter become due. The latter type implies that the company has negative assets or in plain words, its liabilities exceed its assets. It is possible for a business to experience cash-flow insolvency but at the same time it could also be balance-sheet solvent. This situation occurs when the business has non-liquid assets. Negative assets It is also possible for the business to have negative assets on its balance sheet but it could still be in a cash-flow solvent position. This situation often arises when the business has ongoing revenues that are sufficient to pay off debts. Once a person or company declares itself as being insolvent it will have to face the consequences. Some jurisdictions consider insolvency to be an offense, especially when it is a company that is declaring insolvency. Other states may not have such restrictions and these states may even allow the company to continue under special arrangements till such time as alternative options to achieve recovery can be found. The trend is for legislation to favor alternative methods to help the insolvent company wind up for good. Civil action A company that declares itself insolvent can face civil action. The best course of action for them would be to enter into debt restructuring which allows private as well as public companies and even sovereign entities to reduce as well as renegotiate its bad debts so as to improve and even restore its liquidity. Different countries around the world have worked out their own insolvency regimes and will encourage companies to use different strategies with which to overcome their condition. South Africa, for example, treats owners of the insolvent company to be held personally liable for the debts of their businesses. The United Kingdom treats insolvent companies differently and will normally put the company into liquidation. There is also provision that allows the directors and the shareholders of the company to initiate liquidation process without involving the courts of law. In the US, there is the Uniform Commercial Code which considers a person to be insolvent when they have ceased to pay their debts in the ordinary course of business or who are unable to pay off their debts that become due.

Free Phoenix Bankruptcy Lawyer Advice – Bankruptcy and Your Car

A good Phoenix bankruptcy lawyer can give valuable advice when it comes to bankruptcy and your vehicle. In this article we will talk about how filing bankruptcy in Arizona can affect you and your household vehicles. A common question is, if I’m behind on my car payment? Can I keep my car? It depends. If you’re behind on your car payment, unfortunately, you may not be able to. If you go to Kellybluebook.com and look it up and find out that it’s worth $7,000 but your loan is actually $17,000, you’ve got to give that some serious thought. Is it a good idea to hold onto something that’s so dramatically underappreciated? So if you are behind, you have two options. First assess the value of the vehicle. Is it a good idea that you keep it? And a lot of people get really panicky at this point because they think, “If I’m not driving that car, what car am I driving?” Good question. You need to re-allocate those other debts that you’re paying on to come up with the funds to either become current on that car or purchase another one. Let’s say, for example, the car payment is $500 and your monthly expenses on your credit card bill are $1,400. The bankruptcy court looks back 90 days from the date that you filed and says, “What creditors have you been paying and what creditors have you been avoiding?” For the creditor that you want to keep and maintain a good standing with, you need to stop making those credit card payments. So if you stop making $1,400 worth of payments, you’ve just come up with your $500 car payment. Here’s another thought … same scenario. Paying $1,400 in credit card bills and $500 on your car payment, you are paying $1,900. If you stop making those payments 90 days before, your car isn’t repossessed until you’ve been late on two payments and then you file your bankruptcy. That’s $1,900 twice. By bankruptcy, you keep the vehicle while you’re behind until you surrender it to the court, which will take three months. That’s a total of approximately five months where you’ve saved close to $2,000. Truthfully, you should be able to take that cash and purchase a car free and clear, never having to worry about car payments. That’s the type of financial planning that you should utilize bankruptcy for and you Phoenix bankruptcy lawyer will guide you. It’s not that people don’t have the funds. It’s where they allocate their money. So you can find either a car or the car payment and become current before you file. As you can see, the answer is yes, you can if you’re behind. It just depends on whether you’re keeping it forever or just keeping it for that period of the bankruptcy while you find another vehicle that doesn’t have such a difference between the loan amount and the value of the vehicle. There are different ways to handle different situations. One size does not fit all. Everybody’s situation is different, and everyone needs to check into what they currently have, where they are, and what their bills are. Everyone is different. And that’s the reason why you need to hire a good Phoenix bankruptcy lawyer. Each bankruptcy case is customized because everybody’s issues are completely different. This is why you always want to consult with a competent Phoenix bankruptcy lawyer. They want all of their clients to have the best footing possible. Whether you are a retiree worried about your Social Security and disability payments because of outstanding credit card bills or you’re a growing family struggling with enormous debt wanting to save for your children’s college education and your retirement, you can benefit from this incredible financial tool. Everyone is different. An experienced Phoenix bankruptcy lawyer can customize a plan for you.

Free Phoenix Bankruptcy Lawyer Advice – How Bankruptcy Affects Your Home and Foreclosure

Every Phoenix bankruptcy lawyer hears it and they are often asked about how filing for bankruptcy affects your home and foreclosure. Let’s take a look at the question, in the state of Arizona, will filing bankruptcy stop a foreclosure? Yes it will stop a foreclosure. In Arizona, foreclosures occur when you haven’t paid 90 days of your mortgage payments and you’ve been sent a Notice of Trustee Sale. That will indicate to you that within 90 days of receiving that letter, your house will be sold if you don’t catch up on the payments. Those payments they are looking for are a lump sum. They will need both the mortgage that you’ve been behind on as well as the penalties and fees that it’s caused both yourself and the lender to bring that sale. You can stop that foreclosure process by filing bankruptcy. If you file a Chapter 13, you can actually file and catch up on your payments. For example, if the lender is looking for $22,000 in back payments and you don’t have that, you can file your Chapter 13 and that will allow you to make a monthly payment towards that $22,000. For people that have seconds on their homes, those seconds can be removed as secured debt from the house, and you can pay a portion of that back as unsecured debt in a Chapter 13. So you really have an opportunity in a Chapter 13 to sort of move around your finances and bring things down to their actual value. The biggest factor in filing bankruptcy is to hire an experienced Phoenix bankruptcy lawyer. You can choose to file a Chapter 7, and that’s different from a Chapter 13. In a Chapter 13 you are repaying a portion of your debt back to your creditors, whereas in a Chapter 7, you are saying, “I don’t have the ability to pay anything back.” With a Chapter 7 what will happen is you will file it to stop a foreclosure. You will not become current. And for four months while the bankruptcy goes on, you’ll reside in the home without making payments. Then after the bankruptcy is finalized in that fourth month, the creditor will then set the home up for sale. So another three months will go by. With the help of a Phoenix bankruptcy lawyer and good bankruptcy planning, you could remain in that home for seven months after filing and not make a mortgage payment. Maybe you could put those phantom mortgage payments towards other bills that you have. So the answer, in short, is, yes, it will definitely stop it. And it gives people an opportunity to really re-evaluate whether they want to keep that house or not. Upon hearing this answer, people typically then ask, “If I file in Arizona, can I keep my house if I’m behind?” Again, depending on which Chapter you’re filing. That’s such a crucial question right now in our economy, especially in Arizona. A lot of people have suffered enormous depreciation in the value of their home. For example, maybe I bought my home for $300,000. But now I notice that my neighbor’s home and the house down the street and even online databases like Zillow.com and Cyberhomes.com are telling me that my home is only worth $150,000. I really need to question whether I should be holding onto that house. Is that a good idea? If it weren’t my home … it were just a credit card, and I was making payments on $150,000 debt … and I knew that I wouldn’t have the ability to pay off, it’s probably better if I let go of that house. If I file bankruptcy and I’m behind on my house payments, but I’ve done the analysis and I know that maybe my home has some equity in it, I have a decision to make. Say, for example, my mortgage is $300,000 but my house is worth $310,000 or even $350,000, I should be holding onto that home. I should be choosing a Chapter 13 because I want to become current on those payments. But again, if I’m behind and I have a lot of negative equity, I could remain in the home for seven months after filing. I’d be filing a Chapter 7 and I would release the home after that seven-month period. So to go back to the question, it depends on which Chapter I’m really filing. As we said before, also consult with a qualified Phoenix bankruptcy lawyer. If I’m behind, I should choose a Chapter 13. If I’m behind and I want to surrender the home but maybe take advantage of the fact that I need to remain in the house, (maybe my children are in school in that school district), I need time to find a rental. I could use those mortgage payments towards car repair or medical issues, even utilities. I still have the opportunity to stay in the home, pack, and plan my life while I’m in my bankruptcy. So each type of bankruptcy filing, whether Chapter 7 or Chapter 13, has advantages, depending on where you are in the situation and what you actually want to accomplish. It is always best to speak with a Phoenix bankruptcy lawyer directly because they can point you in a specific direction, targeted to where you want to be at the end of the process. Bankruptcy is an amazing financial tool, especially in our economy right now. In Arizona, as well as around the country, many real estate values are dropping. Just a small 9% drop is substantial when you’re spending several hundred thousand dollars on a house and your home is your biggest purchase. You really have to look at whether you think it’s appropriate to hold onto that house, especially when you have other creeping debt. So for people who have a home that’s dramatically upside down, a good Phoenix bankruptcy lawyer will do a lot of financial planning for you to make sure that, when they file your bankruptcy, you get the fresh start that you really need.