Bankrate has a very interesting and informative article about whether a small business can get a small business loan after bankruptcy? The article states that getting a small business loan after going through bankruptcy is possible, but it can be a challenge. At Shenwick & Associates we have found that individuals can obtain credit 6 months to 1.5 years after filing for personal bankruptcy and approximately 2 years for businesses. The article can be found at https://www.bankrate.com/loans/small-business/business-loan-after-bankruptcy/Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com  We help individuals and businesses with too much debt!

When entering into liquidation bankruptcy, debtors might fear losing certain assets. While that is understandable, you can protect some assets using state or federal bankruptcy liquidation exemptions in New Jersey. New Jersey does not have a homestead or a motor vehicle bankruptcy liquidation exemption. Debtors in New Jersey can protect certain personal property during Chapter 7 bankruptcy, such as clothing and some of their household goods and furnishings. There are state exemptions for certain disability benefits and miscellaneous exemptions that can protect assets like pensions, stocks, and life insurance proceeds. In order to protect the bulk of your assets, especially the ones that are the most important to you, you may benefit from using federal bankruptcy liquidation exemptions rather than state exemptions. Reach out to Young, Marr, Mallis & Associates by calling our New Jersey bankruptcy attorneys at (609) 755-3115 and schedule a free case review today. Does New Jersey Have a Homestead Bankruptcy Liquidation Exemption? When discussing New Jersey’s bankruptcy liquidation exemptions, it is important to highlight the ones that the state notably lacks. For example, it is necessary that debtors are aware of New Jersey’s lack of a homestead exemption. New Jersey does not provide any state exemptions that would or could protect your home from liquidation. When you file for Chapter 7 bankruptcy in New Jersey, you cannot exempt your home if you choose state exemptions. Our Marlton, NJ bankruptcy attorneys can help you avoid such a situation by using federal exemptions. If you choose to use the federal homestead exemption, you can protect up to $27,900 of equity in your home from liquidation, which may be enough to avoid losing your house during bankruptcy. Does New Jersey Have a Bankruptcy Liquidation Exemption for Motor Vehicles? While many states have bankruptcy liquidation exemptions for motor vehicles, New Jersey does not. Again, this is a fairly unique approach on behalf of New Jersey and can make filing for Chapter 7 bankruptcy risky in some situations. The biggest fear many debtors have is losing important assets, like their cars, through liquidation. Unfortunately, New Jersey does not have a state bankruptcy liquidation exemption for motor vehicles. This means your car will not be safeguarded from liquidation to pay back creditors unless you use certain federal exemptions instead. Remember, New Jersey, unlike many states, allows debtors to use federal exemptions instead of state exemptions. Because of that, you may be able to take this route to prevent creditors from taking your vehicle to satisfy debts during Chapter 7 bankruptcy. New Jersey’s Personal Property Bankruptcy Liquidation Exemptions New Jersey does have bankruptcy liquidation exemptions for certain personal property. This can allow you to keep things with sentimental value and protect them from liquidation while you are under bankruptcy in New Jersey. There is a state bankruptcy liquidation exemption that protects 100% of a debtor’s personal clothing from liquidation in New Jersey, according to N.J.S.A. § 2A:17-19. This means any expensive or sentimental clothing you might have does not have to be liquidated for you to back pay creditors. N.J.S.A. § 2A:26-4 provides an exemption of up to $1,000 for debtors’ personal property of household goods and furnishings. There is a similar general personal property liquidation exemption that has the same threshold of up to $1,000 for filers. Bankruptcy Liquidation Exemptions for Disability Benefits in New Jersey Some debtors in New Jersey might receive disability benefits and fear that those benefits will be threatened if they file for bankruptcy. Fortunately, New Jersey does provide some exemptions that may protect such benefits. All Workers’ Compensation insurance benefits are protected during Chapter 7 bankruptcy in New Jersey. The same can be said for disability or death benefits for military personnel or civil defense workers. According to N.J.S.A. § 17B:24-8, other insurance disability benefits cannot be garnished or otherwise used to compensate creditors in New Jersey. Miscellaneous New Jersey Bankruptcy Liquidation Exemptions There are many miscellaneous bankruptcy liquidation exemptions that debtors in New Jersey can use. This includes some of a debtor’s held stocks and interests in a corporation, and many types of pensions. Wages are protected from garnishment up to a certain amount during bankruptcy New Jersey. According to N.J.S.A. § 2A:17-56(a), 90% of earned wages will be protected if a debtor earns under 250% of the poverty level. If a debtor earns about that amount, the court may allow a higher percentage of wages to be garnished. Pensions are typically 100% exempt during Chapter 7 bankruptcy in New Jersey. This includes pensions for teachers, prison employees, city employees, county workers, probation officers, city employees, police officers, and others. Crime victim compensation is also protected during Chapter 7 bankruptcy, meaning those funds do not have to be used to pay back creditors. Life insurance proceeds are also 100% exempt. Stocks and interest in a corporation are also protected, up to $1,000. There are other miscellaneous New Jersey exemptions that might benefit you, depending on your situation. Should You Use Federal Bankruptcy Liquidation Exemptions Instead of New Jersey Exemptions? New Jersey’s bankruptcy liquidation exemptions are sparse compared to some other states. Though they cover some property and assets, others are notably left out, which is why it often benefits debtors to use federal bankruptcy liquidation exemptions instead. As a debtor in New Jersey, you can choose to use federal bankruptcy liquidation exemptions. Doing so can help you keep your home, motor vehicle, and other important property during bankruptcy, which are the assets many debtors care most about retaining. You can’t pick and choose from state and federal exemptions. Debtors must decide which set of exemptions they want to benefit from and stick with them. Depending on your finances and the assets you want to retain, federal or state exemptions might be right for you. Call Our Lawyers to Learn More About New Jersey’s Bankruptcy Liquidation Exemptions Call Young, Marr, Mallis & Associates at (609) 755-3115 for a free and confidential case evaluation with our North Jersey bankruptcy attorneys today.

You’re drowning in debt, and you’ve been struggling to keep your head above water for months. Every time the phone rings, you feel a knot in your stomach, wondering if it’s another creditor demanding payment. And forget about bankruptcy. There’s no way you would qualify, and even if you did, you’re afraid of what you’d+ Click Here For Read More The post Fear you’re going to lose your house? Debunking the top 10 bankruptcy myths appeared first on David M. Siegel.

The Lottery Curse: Are Lottery Winners More Likely To Declare Bankruptcy?   Unless you were born into an incredibly wealthy family, you’ve probably daydreamed about winning the lottery at least once or twice. A large windfall of cash could get you out of debt, allow you to purchase a home, and maybe even enjoy an early retirement. But unfortunately, winning the lottery doesn’t necessarily mean freedom from financial difficulties for the rest of your life. Some sources go as far as to say that 70% of lottery winners end up declaring bankruptcy. More conservative estimates put that number at 30%– either way, a substantial amount of lottery winners end up in bankruptcy court. Read on to learn more about this interesting phenomenon, and if you’re considering filing for bankruptcy in Arizona (lottery winner or not), give our firm a call at 480-448-9800. The Odds Of Bankruptcy After Winning The Lottery The chances that someone wins the lottery- especially a Powerball-type, astronomical sum- are minuscule. In addition to about a third of lottery winners ending up in bankruptcy court, lottery winners are also more likely than the average person to declare bankruptcy within 3-5 years of their big win. There is general advice among financial experts for lottery winners. For those who have the option, they should choose installments rather than a lump-sum payment. Lottery winners should stay out of the public eye to avoid potential scammers, thieves, users, and opportunists. Additionally, experts suggest that those who win the lottery continue working. This can maintain a sense of normalcy, help with the low profile, and make sure the winner has less free time on their hands to blow through their money. Unless someone won several million dollars, winning the lottery likely isn’t enough to be “set for life.” So what are the reasons that lead so many lottery winners to file for bankruptcy? There are countless reasons that join together in any combination and lead to financial struggles. Some develop issues with or fall deeper into issues with drugs and alcohol. Someone who already had a problem with addiction would now have all the means to acquire their drugs and alcohol without regular concerns like a job and paying the bills. A lottery winner also becomes a prime target for financial exploitation by pretty much anyone. This includes family, friends, and random strangers. Someone who publicly comes forward about winning the lottery can expect all of their relatives, coworkers, and acquaintances to suddenly have great investment opportunities or need to borrow money for heart-wrenching causes. Some just believe that money is no longer an issue once they win the lottery and spend way beyond their means. Should a Lottery Winner File Chapter 7 Or Chapter 13? If someone wins the lottery and needs to declare bankruptcy less than a year later, it’s likely that Chapter 13 will be their only option. There are strict income limits for Chapter 7 bankruptcy, and your income will be calculated using your earnings from the 6 months prior. The primary way to qualify for Chapter 7 bankruptcy is by earning less than the state median income. Someone who has recently won the lottery likely does not qualify here. The next way someone can prove their income eligibility for Chapter 7 bankruptcy is by passing the means test. The means test is a balance of the debtor’s income and expenses. Only necessary and reasonable expenses can be used towards the means test, like student loans, child support, reasonable rent or mortgage, etc. If the number the debtor calculates using the means test is negative, they should qualify for Chapter 7 bankruptcy. There are also certain thresholds the debtor’s income can fall within based on the filing location and household size. Conducting the means test is not as simple as it sounds. If you are unsure about whether or not you qualify for Chapter 7 bankruptcy, let a professional check for you by calling 480-448-9800. Chapter 7 bankruptcy is many debtors’ preferred choice for several reasons. Taking into account all the types of legal matters one could potentially be in, chapter 7 bankruptcy is relatively one of the shortest and simplest. It should take about 3 to 6 months from start to finish. Chapter 13 bankruptcy, on the other hand, will last either 3 or 5 years, based on the debtor’s income level. Chapter 7 bankruptcy clears unsecured non-priority debts. Chapter 13 reorganizes all debts into a payment plan with only a possibility of unsecured non-priority debts being cleared without payment at the end. However, a debtor can only keep assets that are protected by bankruptcy exemptions if they file Chapter 7. Some of Arizona’s exemptions are strict and definitely don’t cover substantial lottery winnings. Chapter 13 may allow a debtor to hold onto more of their assets while paying off debts under court protection from creditors. Chapter 13 offers other benefits that are unique from Chapter 7 bankruptcy. Call 480-448-9800 to schedule your free consultation to learn more. Is It All Over After Bankruptcy? Just because someone has declared bankruptcy doesn’t necessarily mean that they’re destitute. When used preemptively, bankruptcy can help a debtor get their finances back on track before creditor collection methods like lawsuits, wage garnishments, and repossessions. Bankruptcy is also widely believed to destroy credit, but that is all relative. Someone who has bad credit might actually see their credit score improve after declaring bankruptcy. However, bankruptcy debtors will be disqualified from approval for most home mortgages for 2 years after filing. They can be approved for new lines of credit much sooner of that- many will receive offers just days after their case is discharged. Filing bankruptcy is always a serious matter, but it can be more serious when special factors are present, like being a business owner or working in the financial industry. Most types of businesses aren’t eligible to file for Chapter 13 bankruptcy. If a business owner declares Chapter 7 bankruptcy, they will lose the business. Chapter 11 bankruptcy provides provisions for small business owners but is filed by very few because of its cost and complexity. An experienced bankruptcy attorney can help a lottery winner, as well as any other person struggling with debt, determine if and which type of bankruptcy can help them. Reputable & Reliable Arizona Bankruptcy Representation You don’t have to win the lottery to benefit from the representation of a skilled Arizona bankruptcy attorney. Having knowledgeable legal counsel throughout the bankruptcy process can help you avoid pitfalls like asset seizures, delays and dismissals, adversary proceedings, and more. A bankruptcy attorney will make sure you get the most out of your case while incurring as few negative repercussions as possible. And you don’t have to win the lottery to be able to afford a bankruptcy attorney. My AZ Lawyers offers affordable payment plans that can start after your case has been filed. This allows you to pay for your bankruptcy after shaking off extra expenses like wage garnishments, credit card interest, and more. The best way to figure out all the advantages and disadvantages of declaring bankruptcy in your unique situation is to discuss it with an Arizona bankruptcy lawyer. To schedule your free consultation with an experienced member of our firm, call 480-448-9800.     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 The Lottery Curse: Are Lottery Winners More Likely To Declare Bankruptcy? appeared first on My AZ Lawyers.

 Yahoo Finance is reporting that Small businesses are filing for bankruptcy at a higher rate than at the peak of the pandemic - and a looming credit crunch could make things worseThe article can be found at https://uk.finance.yahoo.com/news/small-businesses-filing-bankruptcy-higher-180500570.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAA Wlcxq9eBw_EDH7SdbAwnf1p2vjy9R8T0I8s4z4TnAtWnfO5kbavPqyksi41EXY1qr-fv6bxeT LbWn3joC ZdgqwyT46sHywfwRVY XeMQ Gd3nC2Gv3-R4xjNgB5GyJlT46RjQ5vRtKcvEazFB SjLY9VD8sE92flvSydqJ2EmdHxvJim Shenwick, Esq.  917 363 3391  jshenwick@gmail.com We help individuals & businesses with too much debt!

If you live in New Jersey, what do you do when a creditor is trying to proceed with a sheriff’s sale of your house?  This question will be addressed under the context of bankruptcy law – that is, if you file a petition for relief in bankruptcy court. A lawyer will help you to determine what sort of bankruptcy protection you should seek.  Many homeowners seek to save their home by filing for Chapter 13 relief.  Under this plan, the debtor may seek to have their debts reduced and to arrange a court-approved payment plan where outstanding debts may be repaid, including a past-due balance on a mortgage.  In this way, a pending sheriff’s sale may be suspended by a bankruptcy court, since creditors are not permitted to proceed with collection efforts without leave from the court once you file for bankruptcy. Call our New Jersey bankruptcy attorneys at Young, Marr, Mallis & Associates at (609) 755-3115 for a free case review. Chapter 7 vs. Chapter 13 Bankruptcy for Ending a Sheriff’s Sale in NJ Chapter 13 relief may be contrasted with a Chapter 7 petition, in which the debtor seeks to have their debts liquidated (or eliminated) by the court.  However, a Chapter 7 petition will likely not permit you to retain the house for which you are seeking to eliminate the debt. You are asking the court to liquidate as many of your debts as possible.  So, in exchange for cancellation of the mortgage debt, the borrower will likely have to give the house up to the lender to whom the mortgage debt is owed.  The mortgage company also usually takes a lien on the house superior to all others.  This is why Chapter 13 bankruptcy is often best for homeowners who wish to stay in their homes but who can no longer afford their mortgage payments or who fell behind on payments. Using Bankruptcy’s Automatic Stay to Stop Sheriff’s Sales in NJ If you file for bankruptcy, all collection efforts by creditors – including that sheriff’s sale – must halt unless the court rules otherwise.  A halt to all collection – called an automatic stay – goes into place when you file for bankruptcy.  To proceed with collections, a creditor must file a motion for relief from stay with the bankruptcy court. A motion for relief from stay essentially means that the creditor wants to proceed with collection attempts just as it had been doing before the debtor filed the bankruptcy action.  The court must consider whether it would be legally unfair to the borrower to continue collections, whether the creditor would receive an unfair advantage if collections are resumed, and how likely it is that the creditor can actually prove that the borrower owes the claimed amount.  If the court rules in favor of the creditor on these questions, the court will then grant the creditor relief from the automatic stay and let the creditor proceed with collections. Other Ways to Stop a Sheriff’s Sale in New Jersey If the bankruptcy court allows the creditor to proceed with a sheriff’s sale of the property, or if the sale happened prior to the bankruptcy petition being filed, there are still ways in which you may recover the property rights to your home by paying the past due balance, curing the default, objecting, and seeking injunctive relief, as described below. Redemption Under New Jersey law, a borrower has ten days following a foreclosure sale to “redeem” their property rights, and the Bankruptcy Code extends the redemption rights 60 days from the date the bankruptcy petition is filed. And in order for a borrower to redeem their property rights following a sheriff’s sale, they must pay the mortgage past due balance, the costs of the foreclosure action and costs of the sale. Curing Default If you have filed for Chapter 13 relief, New Jersey law states that you have the right to cure any default under the plan up until your home is purchased at a sheriff’s sale. Objections There is also a 10-day period following a sheriff’s sale in which a borrower is entitled to file objections to the sale and potentially reverse it.  However, a bankruptcy filing does not automatically serve as an objection that will be legally recognized in response to a sheriff’s sale. Injunctive Relief You can also seek an injunction, which is a court order to stop another party from taking certain actions or force them to perform certain actions.  The claimant typically asks that an injunction be entered at or near the beginning of a case, which often requires a hearing.  Before a claimant can receive injunctive relief in New Jersey, they must convince the court that they are likely to win your case in the end.  The claimant must also persuade the court that there is no other legal relief that can remedy the situation while the case is pending, and that an injunction would be eminently fair under the circumstances.  Additionally, the claimant must show that they will suffer “substantial and imminent hardship” if the court does not grant an injunction. The court considers the benefits and harm to both the claimant and defendant that would result if the injunction were granted.  Then the court determines whether there is any other solution to the problem besides granting an injunction.  Finally, the court decides whether the public at large would be harmed in any way if the injunction were granted.  If the court decides in the claimant’s favor on these questions, an injunction may be granted which will stop the sheriff from proceeding with a sale, either temporarily or permanently. Call Our New Jersey Bankruptcy Attorneys Today Call our New Brunswick, NJ bankruptcy attorneys at Young, Marr, Mallis & Associates at (609) 755-3115 for a free case review.

Bankruptcy is a crucial tool that allows people to seek freedom from certain debts. While bankruptcy can reduce many peoples’ financial burdens, it can also create negative consequences for declarants. One of these negative consequences involves a waiting period that filers must endure before applying for a mortgage loan. Depending on the type of mortgage you are seeking, you will typically have to wait between 2-4 years after the discharge of your Chapter 7 bankruptcy case to buy a house in New Jersey. If you filed for Chapter 13 bankruptcy, then the amount of time you will have to wait can vary depending on how the bankruptcy court decides to manage your case. Generally, it is easier to buy a house after filing Chapter 13 bankruptcy as opposed to Chapter 7. If you need help with your bankruptcy case, consult with our experienced New Jersey bankruptcy lawyers at Young, Marr, Mallis & Associates by calling (609) 755-3115. Applying for a Mortgage After Filing for Bankruptcy in New Jersey When applying for a mortgage in New Jersey, there are several different types of loans that you can seek. The amount of time you will have to wait before applying for these loans is dependent on the type of bankruptcy you declared. FHA Loans Federal Housing Administration (FHA) loans are popular with first-time homebuyers. They are insured by the FHA and issued by banks or other approved lenders. Applicants are only required to produce a 3.5% down payment and the credit score requirement is 580. If you filed for Chapter 7 bankruptcy, then you will have to wait two years before applying for an FHA loan. On the other hand, if you declared Chapter 13, then you may apply for an FHA loan before your case is even discharged. However, you will have to be up to date with your Chapter 13 repayment plan. USDA Loans United Stated Department of Agriculture (USDA) loans do not require down payments and can clear the paths to home ownership for suburban and rural homebuyers. These loans are guaranteed by the USDA Rural Development Guaranteed Housing Loan Program. Most loans are issued by partner lenders. However, the USDA has the power to directly grant loans to certain borrowers. This type of loan usually requires that applicants have a credit score of 640 or higher and must be used to buy homes in eligible, rural locations. If you filed for Chapter 7 bankruptcy, then you must wait three years before you may receive a USDA loan. A different deadline will apply for cases involving Chapter 13. If you filed for Chapter 13 bankruptcy, then you must wait one year after your case is discharged before applying for a USDA loan VA Loans The U.S. Department of Veterans Affairs (VA) grants VA loans to qualified borrowers as a part of their military benefits. These types of loans permit veterans, active-duty service members, and eligible surviving spouses to finance their homes without producing down payments. Further, successful applicants do not have to purchase mortgage insurance or abide by overly strict credit requirements. Still, those applying for VA loans will generally need to have a minimum credit score of 640. If you applied for Chapter 7 bankruptcy, then you must wait two years after your case is discharged before applying for a VA loan. Meanwhile, individuals who declared Chapter 13 bankruptcy may apply for a VA loan at any point, so long as they have not fallen behind on their repayment plans. Conventional Loans Conventional loans are loans that are not backed by government agencies. These loans can come in several shapes and sizes. While they do not offer the same benefits as FHA, USDA, or VA loans, they are still the most common type of mortgage loan that people apply for. Conventional loans can be harder to get after filing for bankruptcy. Typically, longer waiting periods will apply. For instance, if you filed for Chapter 7 bankruptcy, then the typical waiting period you must endure before receiving a conventional loan will be four years from the date of discharge. However, under extenuating circumstances, our Marlton, NJ bankruptcy lawyers may help acquire a conventional loan two years after your Chapter 7 case is discharged. If you filed for Chapter 13 bankruptcy, then you will have to wait two years after your case is discharged before applying for a conventional loan. If your case was dismissed rather than discharged, then you will have to wait 4 years before you can receive such a loan. Building Your Credit Back Up After Filing for Bankruptcy in New Jersey One of the most impactful consequences of a bankruptcy filing is the negative impact on declarants’ credit scores. Having good credit is a crucial aspect of successfully purchasing a new home. Typically, those who have higher credit scores will be able to acquire mortgage loans more easily. Accordingly, it is crucial that you work to build your credit back after filing for bankruptcy in New Jersey. There are multiple ways that you can rebuild your credit score. As an example, you can improve your credit by making payments towards debts that were not discharged in your bankruptcy case. Furthermore, you may rebuild your credit score by securing new forms of credit and making small purchases that are paid in full and on time. Submitting consistent payments on time over lengthy periods of time will serve to improve your credit score. Finally, you can also help your credit score by merely monitoring the score and checking it from month to month. Still, the length of time it takes to rebuild your credit can be very frustrating. The amount of time your score will remain impacted can depend on the type of bankruptcy you filed for. Those Who File for Bankruptcy in New Jersey Can Call Our Law Firm for Support Seek guidance from our experienced Cherry Hill, NJ bankruptcy attorneys at Young, Marr, Mallis & Associates by calling (609) 755-3115.

Maintaining healthy finances is difficult and requires constant work. If your finances are not where they should be, you might be considering some type of debt relief program or filing for bankruptcy. Debt relief and bankruptcy might sound similar and are often discussed in similar situations, but they are very different. Debt relief might come from various sources, and you might not necessarily be maneuvering through legal channels like courts. Bankruptcy is a matter of federal law, and a court might help you discharge certain debts while you pay off others. There are pros and cons to either option. While debt relief helps people avoid the stigma of bankruptcy, outcomes are not guaranteed, and you might not see an improvement in your financial situation. Bankruptcy can help you discharge significant debts, but having it on your financial records might hinder future business or financial opportunities. Schedule a case evaluation for no cost with our Philadelphia bankruptcy attorneys by calling Young, Marr, Mallis & Associates at (215) 701-6519. Deciding Between Debt Relief and Bankruptcy in Pennsylvania Debt relief and bankruptcy can help you escape an unhealthy financial situation plagued by debt, but they take very different approaches and have different consequences. Our West Chester bankruptcy attorneys can discuss both options and help you determine which is best for your situation. Debt Relief Some more common forms of debt relief include debt consolidation, debt settlement, and credit counseling. It should be noted that debt relief is not bankruptcy, and you are not always legally bound by the results of a debt relief program or service. It is wise to speak to an attorney about debt relief before entering any kind of program. Debt consolidation involves taking out a new loan to pay down multiple debts all at once. Once those debts are taken care of, you only have to focus on paying back the one new loan instead of making multiple payments on multiple debts. This can be a helpful option for people struggling with multiple creditors. Debt settlement is a different debt relief option where you or a representative – an attorney – negotiates with creditors so that they accept a portion of your total debt as payment in full. How big this portion of your debt is will depend on your creditors and what they are willing to accept. Credit counseling might be provided by a credit counseling agency and is designed to provide you with the tools you need to improve your financial situation. Credit counseling does not necessarily involve any legal forms or filings. Instead, a counselor will review your credit reports, income, debts, and regular expenses to help you develop strategies and habits to help you escape debts. Bankruptcy Bankruptcy is often a more intimidating option for people in debt, but it can greatly help those with significant debts. Bankruptcy is governed by federal law and involves a formal legal process that our bankruptcy attorneys can assist you with. Chapter 7 bankruptcy works by helping people liquidate various assets (e.g., homes, vehicles, properties) and using the proceeds to pay off debts. Debts that are still left unpaid can be discharged by court order. When a debt is discharged, the debtor is no longer legally liable for paying for it. Chapter 13 works differently than Chapter 7 bankruptcy and focuses more on the reorganization of debts rather than liquidations. Instead of selling off assets, you and an attorney will develop a feasible payment plan, and, if your creditors agree, you may have certain debts discharged after adhering to the payment plan for a time, usually a few years. Advantages and Disadvantages of Bankruptcy and Debt Relief Debt relief programs and bankruptcy might both help you find relief from crippling debt, but there are some downsides you should know about before getting started. It is important to weigh the pros and cons of both options before deciding which path to take. Pros One benefit common across many debt relief options is avoiding the stigma of bankruptcy. Debt relief programs can help you manage your debts without having bankruptcy reflected on your records. You might also gain the skills you need to make better financial decisions and avoid debt in the future. Debt relief services like credit counseling can help you learn how to manage debts on your own and come up with financial strategies to generate wealth rather than hemorrhage money. Debt relief might also help you save money in the long run. For example, you might get a better interest rate by reconsolidating your debt using a debt consolidation loan. Also, making one payment per month instead of several might make it easier to save money. Bankruptcy might allow you to discharge significant debts, meaning you will no longer be liable for payments. In addition, other debts might be taken care of by liquidating assets or setting up a payment plan. Depending on the path you choose, bankruptcy may be completed in a few short months. Cons Some downsides to debt relief programs include a significant toll on your credit score, and some debt relief strategies are not guaranteed to work. For example, you might try to negotiate a debt settlement with your creditors to alleviate some of your debts. However, if your creditors do not budge on payment, you might be out of luck. On top of that, you might still pay fees to a debt relief service provider. Bankruptcy also causes your credit score to take a serious hit, and a massive stigma is associated with bankruptcy. After filing for bankruptcy, it will be reflected on credit reports and financial records. If you ever go to buy a home, take out a loan, or open a business in the future, creditors will see you previously filed for bankruptcy and might not want to work with you. Additionally, if you elect to file Chapter 7 bankruptcy, you risk losing important assets to liquidation. Your home, vehicle, and other properties or assets could be sold to pay your debts. Get in Touch with Our Bankruptcy Attorneys for Assistance To arrange a free case evaluation with our Pennsylvania bankruptcy lawyers, call Young, Marr, Mallis & Associates at (215) 701-6519.

A Fox 13 Report states that  "A growing number of Americans, still reeling from the financial strain of the COVID-19 pandemic, are no longer benefiting from government relief efforts and are increasingly choosing bankruptcy to deal with unmanageable debt, according to a recent American Bankruptcy Institute (ABI)"The article can be found at  https://www.q13fox.com/news/more-americans-choose-bankruptcy-debt-reportAt Shenwick & Associates we held individuals & companies that have too much debt!To schedule a telephone call with Jim Shenwick, Esq Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15min

Showing bankruptcy income eligibility got easier April 1, 2023 Showing income eligibility to file Chapter 7 bankruptcy in Virginia got easier April 1, 2023.  The median income–that’s the cutoff for automatic eligibility based on income–shot up six to ten thousand dollars. The median income for a family of four increased from $124,304 to $134,252.  For […] The post Inflation Adjustment on income–But not on Expenses by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.