Applying for Social Security Disability Insurance (SSDI) benefits in Pennsylvania is a frustrating process. On average, six out of every ten initial applications are denied. On appeal, approximately 14% of cases that were under reconsideration are approved. Finally, applicants who brought their claim before an administrative law judge succeeded 48% of the time. There are […] The post How to Get Social Security Payments for a Disability in Pennsylvania? appeared first on .

 Judge Funk in Jacksonville ruled in favor of the debtor as to a debt that was not scheduled before the claims bar date in a chapter 7, but where the claim was filed in time to share in any distribution.  In re Simmons, 2021 Bankr. LEXIS 2302, Case no 3:18-bk-03267-JAF, Adv 3:20-ap-0081-JAF (Bankr. M.D. Fla. 24 August 2021).   The specific factual background is a bit unusual.  The debtor filed a chapter 7 case in September 2018, initially presumed to be a no asset case.  When it appeared there may be assets to pay creditors, a notice of claims bar date was set for 14 February 2019.  A discharge had already been entered on 26 December 2018.  On 15 January 2020 Debtors supplemented schedule F to add Creative Enters. HK as a general unsecured creditor in the amount of $55,000.   Creative filed a claim in the amount of $79,654.58 on 23 January 2020.  Creative then filed an adversary proceeding asserting that the debt should be nondischargeable under §523(a)(3)(A), noting that the amendment adding them was filed almost a year after the claims bar date had been set.  However it appears no distribution had yet been made to creditors, and Creative would be entitled to receive a distribution if assets are recovered.  11 U.S.C. 523(a)(3)(A) provides that a debt that is not scheduled in time to timely file a proof of claim is not discharged unless the creditor has actual knowledge of the case in order to timely file a claim.  Judge Mark noted that this section should be read in conjunction with §726(a)(2)(C) which provides that a late filed claim is treated as if it was filed timely if the creditor did not possess actual knowledge of the case in time to file a timely claim, and if the claim is filed in time for it to be paid.    The court noted that courts are split on whether a debt in this situation is nondischargeable.   Cases following the plain language approach find the language of §523(a)(3)(A) requires that the debt be nondischargeable even if the creditor knew of the case in time to file a tardy proof of claim and share equally in the distribution.  Disagreeing with this approach, cases following the distribution approach take a holistic view, and ready §523(a)(3)(A) in conjunction with §726(a)(2)(C).  These courts note that the central purpose of the Bankruptcy Code is to allow a fresh start, and that exceptions to discharge must be narrowly construed.  Since §523(a)(3)(A) is only concerned with the ability to file a claim, when a creditor is able to do so and share equally in the distribution, the creditor's rights to such assets had been adequately protected, and the debt should not be excepted from discharge.1  The court distinguished Samuel v. Baitcher (In re Baitcher), 781 F.2d 1529, 1534 (11th Cir. 1986) in that such case had to consider grounds pled under §§523(a)(2), (a)(3), (a)(4), and (a)(6).  None of these counts were pled in the case at bar.1 In re Snyder, 544 B.R. 905, 909-910 (Bankr. M.D. Fla. 2016).↩Michael BarnettMichael Barnett, PA506 N Armenia Ave.Tampa, Fl 33609-1703813 870-3100https://hillsboroughbankruptcy.com  

There was a time when you could file for bankruptcy to stop an eviction. Many Chapter 7 filers would use their bankruptcy to stop a sheriff from executing a judgment for possession. While landlords had a right to petition the bankruptcy court to lift the automatic stay that protected the debtor, many were unaware of […] The post Can You File for Bankruptcy to Avoid Eviction in Pennsylvania? appeared first on .

Restitution is a court ordered payment to a victim of a crime. Whether you were convicted of a felony or misdemeanor, restitution is often ordered to compensate the party who was harmed or suffered a financial loss due to your criminal behavior. In some cases, restitution could be ordered as a probation condition. The amount […] The post Can You File for Bankruptcy to Avoid Paying Restitution in Pennsylvania? appeared first on .

What’s a Realistic Timeline For My Credit Score To Bounce Back After Bankruptcy? How Does Filing For Bankruptcy Affect Your Credit Score One of the primary concerns of many people considering filing for bankruptcy is how it will impact their credit score. The idea persists that filing for bankruptcy in Glendale will devastate your credit, which many people think will make it impossible for them to buy a house or a car for many years to come. Unfortunately, that’s just not the reality – but the persisting myth keeps many people from getting the debt relief they need through bankruptcy. If you file for bankruptcy, it will affect your credit score, but you’ll ultimately end up on much better financial footing as a result. Things That Affect Your Credit Score There are many factors that affect your credit score, and getting an understanding of these things can help you gauge the effect that Avondale bankruptcy will have on your score and what you can do later to improve it. Your score will be primarily influenced by the amount and type of credit you have and how long you have had it. The longer you have had credit, the better your score will be (and the faster it will recover from setbacks). So, if you have had a long and positive credit history before you file for bankruptcy, chances are good that you’ll bounce back faster. Timely payments will positively affect your score, while late payments and delinquencies will negatively affect it. Having too many inquiries, or credit applications, will also negatively affect your credit. Therefore, you may end up doing more harm to your credit by delaying filing for bankruptcy because you may continue to struggle paying your debt, ending up with a lot of late payments and missed payments. You may also end up with a lot of inquiries if you try to open new lines of credit to pay off the ones you currently have. How Bankruptcy Affects Your Score Bankruptcy is definitely a black mark on your credit history. However, what kind of affect it will have depends on what your credit was like prior to filing. If you were struggling with excessive debt, late payments, and missed payments for a long time, chances are good that your credit is pretty bad. Filing for bankruptcy can actually improve your score in cases like that because it puts a stop to those other negatives. Typically, bankruptcy stays on your credit report for seven to 10 years. However, it tends to fall into the background as time goes on, having less and less impact. What You Can Do After Bankruptcy How long bankruptcy makes it difficult for you to get new credit will depend a lot on what you do after your bankruptcy is discharged. In most cases, you can start getting new credits in a year, and you can qualify for some home loans and car loans in two years. The best thing you can do for your credit is to make a budget and stick to it. You always want to be able to pay all your bills on time (barring any unforeseen financial circumstances, of course). Save what you can to use as collateral for a secured credit card and to cover yourself in case of any financial emergency. Then apply for small lines of credit through store credit cards or gas credit cards. The threshold for approval on these is lower, and if you can get one and start spending small amounts on it, you will quickly start rehabbing your credit score. Keep an eye on your applications though! Too many inquiries can also bring down your credit. Apply for one card, and if you’re rejected, give it at least another month before you apply for anything again. Hire a Trusted Bankruptcy Attorney In Avondale If you are struggling with debt, do not let fears about what it will do to your credit score keep you from getting the relief that bankruptcy offers. Talk with a bankruptcy attorney to explore your options. Call My AZ Lawyers today to talk with a bankruptcy lawyer about how Chapter 7 bankruptcy or Chapter 13 bankruptcy may help you. One of our attorneys will review your finances and help you understand which option will benefit you most. Our goal is to help you get the maximum debt relief possible under the law. We represent clients in Phoenix, Tucson, Glendale, and Mesa. Contact us today to schedule a free consultation with a bankruptcy lawyer and learn more.   Arizona Offices: Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Email: info@myazlawyers.com Website: https://myazlawyers.com/ Phoenix Location: 343 West Roosevelt, Suite #100 Phoenix, AZ 85003 Office: (602) 609-7000 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 469-6603 The post What’s a Realistic Timeline For My Credit Score To Bounce Back After Bankruptcy? appeared first on My AZ Lawyers.

For many people experiencing financial difficulties, a mortgage forbearance could be a useful tool in coping with mounting monthly bills. When your mortgage lender allows you to pay less than you owe or suspends your monthly payments altogether, it frees up funds for other bills. However, if your lender denies your application for a mortgage […] The post Should You File For Bankruptcy if Denied a Mortgage Forbearance? appeared first on .

The different sections of the Bankruptcy Code should all work together for a common purpose. Sometimes a situation arises which looks like a disconnect. I had this happen in a dischargeability case I am defending. The creditor filed an action under Section 523, based on a suit pending in another state, and asked to have the stay lifted to allow the case to go forward. While the motion was pending, the debtor received his general discharge. The court asked the parties to address the impact of Section 362(c)(2)(C), which states that the automatic stay for an individual in Chapter 7 terminates upon entry of the general discharge.   By way of background, Section 523 provides that the discharge under Section 727 “does not discharge an individual from any debt” covered by the next nineteen subsections. In the case of an individual debtor, the automatic stay under Section 362(a) operates like a preliminary injunction, enjoining suits against the debtor pending entry of the discharge. The discharge acts like a permanent injunction and bars the pursuit of actions against the discharge. With respect to lawsuits and collection actions, the protection of the discharge takes over from the automatic stay. In theory, the transition should be seamless. However, what happens in the situation where the stay has expired under Section 362(c)(2)(C), but the debt has not been determined to be dischargeable or non-dischargeable? The problem, as it first appeared to me, was that if the stay terminated due to the discharge and the debt had not been discharged, didn’t that leave the creditor free to continue the litigation? My solution was to say that when the debt has not been determined to be dischargeable or not, the discharge had not taken effect as to that debt and therefore that Section 362(c)(2)(C) did not apply. The judge had a different analysis, although it essentially arrived at the same result. The Court ruled that entry of the discharge did in fact terminate the stay, rendering the motion to lift stay moot. However, the discharge took over at that point. Section 524(a)(2) states that the discharge “operates as an injunction against the commencement or continuation, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor….” Thus, the court found that even though dischargeability had not yet been determined, the discharge blocked pursuit of the state court action. The court further ruled that if the creditor wanted to continue in the state court forum, it could ask the bankruptcy court to abstain in favor of the state court action. The court’s solution reconciles Sections 362(c)(2)(C), 523(a) and 524(a)(2). The discharge is the discharge. Thus, for an individual in a chapter 7 case, entry of the discharge terminates the stay. However, the automatic stay is replaced by the injunction of Section 524(a)(2). If the debt is later found to be nondischargeable, then Section 523(a) excludes it from operation of the discharge. That being said, during that period when the debt is neither dischargeable nor nondischargeable, the discharge applies. The problem that I had in my thinking was that I assumed that the discharge did not take effect until the debt was found to be dischargeable. However, the opposite is true. The debt is not excluded from the discharge until the court so finds. The problem is more difficult for debts that are automatically deemed nondischargeable. Recently I wrote that certain educational loans did not fall within the language of Section 523(a)(8). Thus, these debts would be immediately discharged. However, if the debtor misunderstands the nature of the debt and it really is nondischargeable, then the discharge would never take effect. For these automatically nondischargeable debts, there is a binary outcome. Either the discharge applies immediately, or it is excluded from discharge immediately. Despite this certainty, there may be ambiguity as to whether the discharge applies or not. This leads to the possibility that a creditor may be violating the discharge, even if it has a good faith belief that the discharge does not apply.  In this case, a prudent creditor will stop trying to collect and seek a determination that the discharge does not apply. However, in far too many cases, I see the creditor continue trying to collect until the court finds the debt to be subject to the discharge. At that point, the discharge has clearly been violated and there may be consequences for the creditor.

When someone feels overwhelmed with credit card debt, they will often turn to creative solutions other than bankruptcy to address the problem. One common tactic is to consolidate the debt into one payment. This could be accomplished in different ways, including employing a debt consolidation agency or applying for a consolidation loan. Each of these […] The post How Does Debt Consolidation Work? appeared first on .

Are you getting your mortgage statements after filing bankruptcy? Some mortgage companies use bankruptcy as an excuse to stop sending mortgage statements. (Or they send them to your lawyer, not to you.) The law is completely clear. The law says to keep sending them to you.  That law is Regulation Z. The Consumer Finance Protection […] The post Getting Your Mortgage Statements After Bankruptcy by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

The decision to file for bankruptcy is one that may take a lot of time and thought.  It often comes at a very difficult time in one’s life.  The stress and uncertainty about the anticipated results as well as the fear of what the future will look like only adds to the difficulty.  Without the+ Read More The post Finding a Trustworthy Bankruptcy Attorney in Illinois appeared first on David M. Siegel.