Bankruptcy is a legal proceeding in which a person who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law. Call me for a free consultation at (215) 551 7109. Please visit our website for more information at www.thephiladelphiabankruptcyattorney.com.
Bankruptcy may make it possible for you to: Eliminate the legal obligation to pay most or all of your debts. This is called a “discharge” of debts. It is designed to give you a fresh financial start. Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. (Bankruptcy does not, however, automatically eliminate mortgages and other liens on your property without payment.) Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed. Stop wage garnishment, debt collection harassment, and similar
File for Bankruptcy First. If you and your spouse are on good terms, then consider a bankruptcy before the divorce. By filing jointly, all debts will be addressed under one bankruptcy case. You can wipe out your joint debts together and may also be able to increase your exemption amounts. This is also helpful if one spouse makes all the money because it will increase the chance of qualifying for a Chapter 7 for that spouse. Bankruptcy will also eliminate contracts that neither one of you wants, like car loans that cost too much or mortgages on houses that are
Yes, with some exceptions. Bankruptcy will not normally wipe out: • money owed for child support or alimony; • most fines and penalties owed to government agencies; • most taxes and debts incurred to pay taxes which cannot be discharged; • student loans unless you can prove to the court that repaying them will be an “undue hardship;” • debts not listed on your bankruptcy petition; • loans you got by knowingly giving false information to a creditor, who reasonably relied on it in making you the loan; • debts resulting from “willful and malicious” harm; • debts incurred by
Which is worse, bankruptcy or debt? The answer might not be what you think. You might be suffering from burdensome debt and looking for a solution to your financial hardship. The search may keep you up at night, disturb your sleep and reduce your ability to focus at work. You may have tried opening new credit cards, transferring debt or letting payments slide, but it only makes matters worse. People view bankruptcy like its admitting failure, something you avoid at all costs but it may be the best option and your first step toward freedom from debt. The cost of
Many people considering bankruptcy hesitate for fear of damaging their credit scores. The real impact of bankruptcy on your credit score may surprise you. Credits scores often improve an average of 80 points immediately after bankruptcy. But why? A credit score is composed of 35% payment history; 30% amounts owed; 15% length of credit history; 10% new credit; and 10% credit mix. Bankruptcy erases the “30% amounts owed” category by virtue of your discharge order in bankruptcy. That’s the simple answer as to why your credit score increases. If you do file for bankruptcy, it’s not the end of your financial
When you file for bankruptcy, something called the automatic stay immediately stops any lawsuit filed against you and most actions against your property by a creditor, collection agency, or government entity. The automatic stay prohibits most creditors from continuing with collection activities, which can provide welcome relief to debtors as well the opportunity to regroup during bankruptcy. Creditors and bill collectors must stop collection activities when they first learn of a bankruptcy filing. What the stay prohibits The automatic stay prohibits Beginning or continuing law suits Collection calls Repossessions Foreclosure sales Garnishment or levies Violations of the stay Anyone
Donald Trump has written many books about business but they all seem to end at Chapter 11! The following summary of the six (6) Trump bankruptcies was complied from the Associated Press; Washington Post; and Politifact news organizations. Bankruptcy # 1: The Trump Taj Mahal, 1991 Trump’s first bankruptcy involved the construction of the $1,000,000,000.00 billion Trump Taj Mahal casino in Atlantic City, N.J., which opened in 1990. A year later, the casino was nearly $3 billion in debt, while Trump had racked up nearly $900 million in personal liabilities. Bankruptcy # 2: Trump Castle, 1992 Within a year of
Courtney Tucker and Michael Lincoln were engaged to be married in 1999 but the engagement suddenly ended in February, 2000 at which time a bitter dispute arose over Courtney’s personal property. Courtney attempted to reclaim her belongings at their residence in Crum Lynne, Pennsylvania but Michael had already changed the locks and would not allow Courtney to enter the residence. Left with no other option, Courtney filed an action in the Court of Common Pleas, Delaware County seeking a Protection From Abuse Order. Honorable Maureen F. Fitzpatrick granted the (PFA) and also granted Courtney’s request to go to the Crum Lynne
The Philadelphia Association of Paralegals Bankruptcy Committee will be hosting a Lunch-and-Learn on Friday, April 10th at 12.15 p.m., at Dunne Law Offices, P.C., 1515 Market Street, Suite 1200, Philadelphia, PA 19102. Stephen M. Dunne, Esq. will be presenting an overview of Chapter 7 & Chapter 13 Bankruptcy. The meeting will discuss why people file for bankruptcy; the various costs involved; mandatory credit counseling; the bankruptcy petition; the automatic stay; the 341 meeting of creditors; and the bankruptcy discharge. The Dunne Law Offices, P.C. will provide lunch and caffeinated refreshments to ensure no one falls asleep while we discuss the bankruptcy code.