For many individuals with debts that they cannot adequately pay, bankruptcy offers a solution that lets both the debtor and creditors get what they want over time. The creditor gets paid, and the debtor can start fresh after bankruptcy proceedings are over. An important component of bankruptcy is making sure that the debtor is not destitute when proceedings end and can adequately move on with their life. However, just because bankruptcy strives to preserve a debtor’s livelihood does not mean that they should act as if nothing is going on. Bankruptcy is still a process that should be taken very seriously. While debtors in bankruptcy are still allowed to spend their own money on whatever they want, they should do everything possible to avoid spending beyond essential purchases. Any luxury assets the debtor has when they file for bankruptcy can generally be sold to satisfy their debts to creditors during bankruptcy proceedings. Moreover, filing for bankruptcy under certain chapters allows debtors to take assets you obtain after you file. For assistance navigating the complex process of bankruptcy, call our Bucks County bankruptcy lawyers with Young, Marr, Mallis & Associates at (215) 701-6519 for Pennsylvania or (609) 755-3115 for New Jersey to get a free case review. What is Bankruptcy? Bankruptcy is a process by which the court puts together a plan for debtors to pay back their creditors. There are a lot of misconceptions about bankruptcy, thanks to the common public perception that it is a decision made by desperate people or companies that have poorly managed their assets. The reality is that bankruptcy is designed to make sure that the needs of debtors and creditors are met. Debtors cannot be harassed by creditors or be left destitute, and creditors get their debts paid over time. Thus, both sides will end up satisfied and able to move on with their lives in an ideal bankruptcy proceeding. One of the most important aspects of bankruptcy is something called an “automatic stay.” This is put in place immediately after you file for bankruptcy and prevents creditors from taking action to try and collect their debts. Instead, you pay off your debts in a controlled fashion over the course of bankruptcy proceedings. Spending Money During Bankruptcy You can spend money after you file for bankruptcy. However, it is not advisable to sell any assets or buy new ones prior to or during bankruptcy proceedings. Doing so can make you look bad in both the eyes of the court and your creditors. Creditors cannot monitor your everyday spending during bankruptcy, so they will not know if, for example, you go out for a nice dinner or take a road trip. However, creditors can request bank statements at any time during bankruptcy, so they will be able to see your spending habits if they care to look. Ultimately, bankruptcy proceedings only care about getting the creditor paid. The best way to do that is to only spend what is necessary during bankruptcy proceedings. Afterward, you will have a fresh start and be able to spend as you please. Claw-Backs You should be extremely wary of selling off any assets that are not exempt from bankruptcy proceedings. When you sell off an asset that can be “liquidated,” or sold for cash to satisfy debts, the creditors can do something called a “claw-back.” A claw-back is when a creditor can take something you sold from the person it was sold to. For example, if you have a nonexempt car and sell it to your friend during bankruptcy proceedings, the debtors may be able to take that car from your friend and sell it to help pay your debt. This is likely to make both creditors and your friend very unhappy with you. After-Acquired Property You should also be careful about obtaining any new assets during bankruptcy proceedings. When you file for bankruptcy, all of your current assets are tallied up and marked as either exempt or not exempt. Exempt assets cannot be sold off, while non-exempt assets can. The assets that can be sold off become part of what is called the “bankruptcy estate,” which is managed by a trustee. Anything you obtain after bankruptcy proceedings have started is called after-acquired property. After-acquired property is not listed as exempt. However, the after-acquired property is not part of the bankruptcy estate, so it is generally shielded from being sold off to pay your debts. That being said, if you file for bankruptcy under Chapter 13, the after-acquired property is part of the bankruptcy estate and can be sold off. Make sure you take note of the Chapter of bankruptcy you file under with our Philadelphia bankruptcy lawyers so that you appropriately manage your spending expectations. Spending Prior to Filing for Bankruptcy It is a good idea to avoid making any purchases that are not necessities just before filing for bankruptcy. Not only does it look bad in the eyes of both creditors and the court, but those purchases then become assets that can be liquidated in bankruptcy proceedings. Therefore, it is advisable to avoid making expensive or frivolous purchases prior to filing for bankruptcy. Do not invest in a new house or new car, avoid activities like expensive vacations, and do not transfer assets to friends or family just before filing. If you transfer assets in this way, it will not look good in the eyes of the court or creditors. If you have recently acquired significant assets just before filing bankruptcy, you should speak with our Pennsylvania bankruptcy lawyers about what to do in your situation. Talk to Our Bankruptcy Lawyers Today Young, Marr, Mallis & Associates’ bankruptcy lawyers can help with your case when you call (215) 701-6519 for Pennsylvania or (609) 755-3115 for New Jersey.

Going through foreclosure can be a painful experience, but lenders must follow strict legal procedures for the foreclosure to be considered valid. Pennsylvania is not a non-judicial foreclosure state, meaning all foreclosures must go through the courts. Pennsylvania is a judicial foreclosure state, meaning all foreclosures must go through the courts, and lenders must file lawsuits against borrowers to foreclose. While this might make the process a bit complicated, it also allows borrowers to defend themselves and try to hand on to their properties and avoid foreclosures. The judicial foreclosure process requires lenders to adhere to strict procedures, including requirements for notice and mediation. To avoid the foreclosure process, a lawyer can help you file for bankruptcy, which should initiate an automatic stay on any legal proceedings pending against you. Call our Pennsylvania bankruptcy attorneys at (215) 701-6519 and set up a free review of your situation to begin fighting foreclosure with our team at Young, Marr, Mallis & Associates. What Does Nonjudicial Foreclosure Mean in Pennsylvania Bankruptcy Cases? When faced with foreclosure, one of the first things you should talk to an attorney about is whether your state is a judicial or non-judicial foreclosure state. Pennsylvania is a judicial foreclosure state, meaning foreclosure proceedings happen in the courts. A judicial foreclosure requires that lenders file a lawsuit against borrowers in the courts. Being in a non-judicial foreclosure state has a variety of pros and cons you should discuss with your lawyer. One advantage is that every move the lender makes must go through the courts. This greatly limits what lenders can do to secure the foreclosure, and you are less likely to encounter shady tactics from unsavory lenders. On top of that, you have greater opportunities to legally challenge the foreclosure in court. Judicial foreclosure proceedings also take longer, meaning you might have more time to devise a plan with your lawyer. A non-judicial foreclosure does not involve the courts. While the lender might be required to send certain notices to the borrower about the foreclosure, the process generally skips the courts. Non-judicial foreclosures are faster and often leave borrowers scrambling. The Judicial Foreclosure Process in Pennsylvania The judicial foreclosure process in Pennsylvania can largely be broken down into several broad yet distinct categories. The process begins with certain pre-foreclosure proceedings before moving on to foreclosure. Once the foreclosure is official, the property may be auctioned off or sold. Pre-Foreclosure The non-judicial foreclosure process begins before you are in default or foreclosure. Typically, lenders must send notice to borrowers about foreclosure ahead of time. If you miss a payment, you often get a written notice alerting you to the missed payment and how you can make up for it, but this does not mean you are in default. If you have missed multiple payments, the lender might notify you and try to work with you to avoid foreclosure. Remember, lenders would rather you continue paying your mortgage than foreclose. Under federal law, lenders can begin foreclosure proceedings once you are at least 120 days past due on payments. At this point, the lender should notify you again of what is happening. Typically, they send a demand letter informing you that you are in default and that foreclosure will begin if the loan is not paid. After all that, the lender is required to send additional notices informing you of the forthcoming foreclosure. These notices, referred to as Act 6 Notices in the State of Pennsylvania, should inform you of the foreclosure 30 days in advance. If your lender in Pennsylvania did not properly notify you before they began foreclosure proceedings, tell your lawyer immediately. Foreclosure When foreclosure begins, the lender must file a complaint against you in court, like a lawsuit. Typically, the lender must file in the county where the property is located. If they file in the wrong court, the lender might have to start the process over. The complaint filed by the lender should contain information similar to a lawsuit, including your personal information, a description of the property in question, and details about the mortgage and missed payments. Just like with pre-foreclosure proceedings, the lender must serve you notice after they file the complaint. This notice serves to inform you that foreclosure proceedings have begun. The notice must be served to you in accordance with notice requirements typical in civil lawsuits. If the lender fails to provide notice, alert your lawyer immediately, as this is a huge violation. After the lender files the complaint, you must respond or risk a default judgment against you. A default judgment may be entered when the borrower does not acknowledge the complaint, meaning they automatically lose and enter foreclosure. If you receive a foreclosure notice, talk to a lawyer immediately so they can begin working on your answer. Auction If you lose your foreclosure case, the lender may begin preparing to auction off the property. While an impending auction might make you feel as if all hope is lost, your lawyer might still be able to help. Pennsylvania allows for a reinstatement period lasting up until right before the auction begins. A reinstatement involves curing the default and having the loan reinstated, thus stopping the auction and avoiding foreclosure. Reinstatement is not always possible, but it might be worth discussing with your lawyer. How to Avoid the Judicial Foreclosure Process in Pennsylvania One way you can avoid a foreclosure is to file for bankruptcy. This might seem counterintuitive, as people often lose their homes in bankruptcy proceedings like in foreclosure proceedings. The truth is that filing for bankruptcy halts foreclosure and gives you time to plan with your lawyer to keep your home. When you file for bankruptcy, the court should issue an automatic stay. The automatic stay immediately halts all legal proceedings pending against you regarding the defaulted mortgage and your home. You might already be in foreclosure with the lender moving toward selling your home, and the automatic stay puts everything on pause. When you file for bankruptcy, your attorney can help you avoid losing your home. For example, by filing for Chapter 13 bankruptcy, you can devise a payment plan to help you catch up on missed mortgage payments and other debts. Your lawyer can also help you take advantage of federal homestead exemptions so your home is not seized in bankruptcy proceedings. If You Are Facing Foreclosure, Call Our Pennsylvania Bankruptcy Lawyers for Help Today Call our Philadelphia bankruptcy lawyers at (215) 701-6519 and arrange a free review of your case to begin fighting foreclosure with our team at Young, Marr, Mallis & Associates.

US credit card debt surges to more than $1 trillion for first time ever.  See the full story at https://nypost.com/2023/08/08/us-credit-card-debt-surges-to-more-than-1-trillion-for-first-time-ever/?utm_source=gmail&utm_campaign=android_nypCredit card debt of this magnitude may indicate more bankruptcy filings in the future. Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

Getting a loan from the bank or another lender can be challenging, and securing the loan with a pledge of collateral might make things easier. Unfortunately, your property pledged as collateral might be seized if you default on loan payments. When you pledge property or assets as collateral, you are offering your property as a way of securing a loan. Ideally, you should repay the loan, and your collateral will remain in your possession. If you default on the loan, the lender can seize the collateral to pay your debt. If you are having trouble keeping up with loan payments, filing for Chapter 13 bankruptcy might help prevent the lender from seizing your collateral assets. Simply having the loan discharged might not prevent you from losing your collateral. Talk to a bankruptcy lawyer if you are afraid of losing collateral property. To schedule a free review of your financial situation, call Young, Marr, Mallis & Associates at (215) 701-6519 and speak with our Philadelphia bankruptcy attorneys. What Happens When You Pledge Property or Assets as Collateral? Some people have trouble getting approved for a loan for a variety of reasons. To make the process a bit easier, you have the option of pledging collateral. Pleading collateral involves offering some property or assets to the lender. The collateral should be valuable enough to help pay a significant portion of your loan back if you default. Many people pledge something as collateral because it assures the lender that they will get their money back one or another, and borrowers are often given better interest rates. A loan obtained using collateral is referred to as a secured loan. Ideally, you should be able to repay the loan over time, and any property you pledged as collateral will be released. If you default on the loan, the lender may seize the property pledged as collateral and use it to cover your debts. In such a case, you would lose your property. Generally, borrowers retain control over the pledged property. For example, if you pledge your house as collateral, you can still live in the house and continue paying the mortgage. However, if the lender seizes the collateral property after you default, you would have to vacate the home. Will I Lose Assets or Property I Pledged as Collateral? As described above, you might lose the property you pledged as collateral. However, the lender cannot take the collateral until the borrower defaults. The lender cannot seize the property at any time they want. This is important to understand, as missing a single payment might not automatically put you in default. If your lender is making moves to seize the collateral before they are legally allowed, get in touch with a lawyer immediately. If you are having trouble keeping up with the loan payments but do not wish to go through the bankruptcy process, you might be able to elect to let go of the collateral property. If you surrender the collateral, it will become the property of the lender, and they will use it to fulfill your debt. Depending on what kind of property was pledged as collateral, this might be a viable option for some people. How to Prevent the Loss of Property Pledged as Collateral Secured debt involving pledged assets or property may be discharged through bankruptcy, and you would no longer be liable for repayment. However, if a secured debt is discharged, you do not get to retain any assets or property you pledged toward it. This creates a tricky situation for borrowers who cannot afford to repay debts but want to retain the property they pledged as collateral. This is incredibly frustrating for people who might have pledged their home as collateral, as they might have nowhere to live after bankruptcy proceedings are complete. Filing for Chapter 13 bankruptcy might be the solution you are looking for. Rather than liquidating assets to pay debts and discharging secured loans, Chapter 13 allows you to set up a payment plan. Chapter 13 filers tend to be on payment plans for several years, but the plan might allow you to repay your secured loans instead of discharging them. This way, you get to keep your pledged assets. What Do I Do if I Cannot Repay My Loan Involving Pledged Collateral? If you do not believe you can keep up with your loan payments and default is imminent, call a lawyer as soon as possible. Our Pennsylvania bankruptcy attorneys can review your financial situation and help you figure out how to protect your assets and get out from under your debt. One possibility is to look at your other properties or assets, if any, and decide if you would rather liquidate one of them to avoid losing the property you pledged as collateral. For example, perhaps you placed your home as collateral for a loan to start a business, but you are having difficulty keeping up with loan payments. Rather than lose your home as collateral, you might liquidate an investment property you were sitting on or a vacation home if you have one. Doing so would allow you to pay your loan back and keep your home. If you do not have other assets to liquidate, as many people do not, filing for Chapter 13 bankruptcy might be a good option. While bankruptcy is a bit of a dark mark on your credit, it can help you in the long run. Chapter 13, as mentioned above, focuses on restructuring your finances and developing an aggressive yet feasible payment plan. Our team can help you devise a plan that helps you pay off your secured loan in a few years, so you keep the collateral you pledged. Call Our Bankruptcy Lawyers for Assistance Right Away Call Young, Marr, Mallis & Associates at (215) 701-6519 and speak with our Bucks County bankruptcy attorneys to schedule a free review of your financial situation.

If you have creditors coming after you to have their debts paid, they may take you to court to try and have you ordered to pay those debts. If you cannot pay right away, the court may order that some of your income be directly given to your creditors. This is a process called wage garnishment. Wage garnishment can have a significant impact on your income and your ability to lead your current lifestyle. Garnished wages may leave you unable to pay some of your current expenses and make your current debt problem even worse. In New Jersey, wage garnishments stay in place until the debt is paid. This means that if you can pay off the debt, you can avoid wage garnishment. However, another way to stop wage garnishment is to file bankruptcy. Filing bankruptcy stops all debt collection and wage garnishment. If you are having issues regarding wage garnishment and considering bankruptcy, talk with Young, Marr, Mallis & Associates by calling (609) 755-3115 and get a free case review with our New Jersey bankruptcy lawyers. What is Wage Garnishment in New Jersey Wage garnishment is a court order that requires your employer to send a certain portion of your paycheck directly to your creditors. Essentially, you are no longer trusted to pay your debts, so the court will do it for you. The garnishment is in place until your debts are paid. There are federal protections in place for workers who have their wages garnished. For example, an employer cannot fire you for garnishments based on any single debt. However, if you have garnishments for multiple debts, that protection goes away. How Wage Garnishment Works in New Jersey Your wages cannot simply be garnished out of the blue. There are steps that your debtors have to take in order to garnish your wages and then obtain part of your wages to pay off debts. We will go through some of the things creditors must do in order to garnish wages below, but if you believe that your creditors did not follow these laws, you should discuss your situation with our Egg Harbor, NJ bankruptcy lawyers. Court Judgment In order for debtors to get garnished wages from your employer, they need to obtain a judgment against you from the court. What this means is that your creditors need to go before the court, explain why they deserve the garnish your wages, and then the judge has to agree with them and allow the garnishment. There are, however, some cases where your wages can be garnished without a court order. Student loans, child support, and unpaid income tax can all be garnished from your wages without a court order. Garnishment Amounts A wage garnishment will also indicate how much of your wages are being taken to pay the debt. Generally, wage garnishment in New Jersey will take up to 25% of your net salary. This is your salary after your employer has deducted the appropriate tax amounts and other fees. However, the amount can be much higher. For example, garnishments for child support can be up to 50% of your net salary. While the amount of your salary that can be garnished is quite high, there are some restrictions. The garnishment amount cannot be so high that you are unable to pay monthly expenses like costs of rent or food. Additionally, some forms of income cannot be garnished. For example, military pay to members of the armed forces is exempt from being garnished. That being said, wage garnishment is still a significant dent in your finances, and it can seriously hamper the way you live your life. Ways to Prevent Wage Garnishment in New Jersey If your wages may be or are currently being garnished, there are several things you can do to remove or modify the garnishment. Our Cherry Hill Bankruptcy lawyers can figure out the best course of action for your wage garnishment situation. File for Bankruptcy One of the fastest ways to stop wage garnishment is to file for bankruptcy. Many plaintiffs will be nervous about filing for bankruptcy because it has a reputation for coming from financial mismanagement or irresponsibility that leaves the filer destitute. That is not true. Bankruptcy is best thought of as a reset button. It is a way to give a debtor breathing room to pay off their debts in a controlled, court-mandated fashion. After bankruptcy proceedings have run their course, you have a clean slate without any debts and are free to go about your life how you see fit. One of the primary benefits of filing for bankruptcy is something called the “automatic stay.” When you file for bankruptcy, the courts place an automatic stay on any debt collections against you. This means that creditors can make absolutely no attempt whatsoever to collect debts from you while you pay them back over the course of bankruptcy proceedings. Automatic stays are so comprehensive that they even prevent creditors from making soliciting phone calls asking for you to pay their debts. Wage Garnishment Modification If you wish to avoid filing for bankruptcy, another option available to you is to request a modification to the wage garnishment. To have a wage garnishment modified, you have to prove in court that you cannot afford your basic expenses with the wage garnishment set at the current amount. If you wish to pursue this path, our lawyers can help you file a motion for reduction so you can better manage paying off debts through wage garnishments. Talk to a New Jersey Wage Garnishment Lawyer Today Young, Marr, Mallis & Associates has East Brunswick, NJ bankruptcy lawyers available at (609) 755-3115 to give free analyses of your case today.

 Misuse or Misapply SBA EIDL Loan Proceeds and Chapter 7 Bankruptcy FilingsAs many readers of our emails and blogs know, we have developed a practice representing individuals and businesses that have defaulted on SBA loans. We either want to do a workout with the SBA or file for bankruptcy.The first question we are asked is whether SBA loans are dischargeable in a Chapter 7 bankruptcy filing. The answer to that question is yes. The SBA (depending on the amount of the loan) is either an unsecured or a secured creditor, and those loans are dischargeable in a chapter 7 bankruptcy filing.The second question we asked is: if the business files for chapter 7 bankruptcy, is the business owner who guaranteed the loan (if the SBA loan was greater than $200,000.00, a guarantee is required) still liable to pay for the defaulted loan? The answer is yes.The third question is, What happens if the business that received the SBA EIDL loan misuses or misapplies the SBA loan proceeds?The SBA EIDL loan requires borrowers to use the funds only for eligible expenses like payroll, fixed debts, accounts payable, and other regular business expenses (working capital).Using funds for unauthorized purposes violates loan terms.If the SBA determines a borrower misused the funds or did not use them as required, it can demand repayment of the loan. It can also commence litigation against the borrower to collect the monies. The SBA can foreclose against business assets if they are secured or sue the guarantor. The SBA can obtain a judgment, garnish wages, place liens on property, and liquidate assets to recover the unpaid loan balance. The SBA can also refer the defaulted loan to the Treasury Department for further collection efforts.The fourth question we are asked is: if the business that received the SBA EIDL loan misused or misapplied the SBA loan proceeds, can that entity file for chapter 7 bankruptcy to discharge the loan?For example, what if the borrower did not use the money for working capital or operating expenses but instead used the money for personal expenses such as the purchase of real estate, an automobile, or a stock or bond investment?The misuse or misapplication of the SBA EIDL loan proceeds may prevent the borrower from receiving a discharge in bankruptcy for the reasons provided below.First, the dischargeability of SBA EIDL loans in Chapter 7 Bankruptcy is governed by bankruptcy law under 11 U.S.C.  § 523(a)(2)(B).Section 523(a)(2)(B) pertains to the non-dischargeability of debts arising from "false pretenses, false representation, or actual fraud, other than a statement respecting the debtor's financial condition. If the SBA determines that the borrower engaged in fraud, the SBA could commence an adversary proceeding objecting to the business’s bankruptcy discharge (an adversary proceeding is litigation commenced by a party after a bankruptcy filing).COMMENTS:Adversary proceedings in Bankruptcy are expensive and time-consuming, and creditors do not frequently commence litigation in bankruptcy cases, in this author’s experience.Will the chapter 7 Bankruptcy Trustee inquire about the misuse or misapplication of funds and notify the SBA? Generally, that is not the concern of a Bankruptcy trustee.The larger the loan amount, the more likely the SBA will object to the discharge.If there is a guarantee, the SBA will be less likely to commence litigation.The SBA employees are busy, and they may just write off the loan and move on to the next case.We were unable to find any Bankruptcy cases involving the misuse or misapplying of SBA EIDL loan proceeds or adversary proceedings by the SBA (although those cases may exist).If the SBA commences litigation, they need to prove fraud (which is difficult), and there may be opportunities to settle the case.Finally, the Debtor needs to do a cost-benefit analysis regarding the cost of the chapter 7 bankruptcy filing and the risk of an adversary proceeding being commenced by the SBA.Businesses or creditors with questions about the misuse or misapplying of SBA EIDL loans should contact Jim Shenwick, Esq., at 917-363-3391  jshenwick@gmail.com-----------------------Other Posts by James Shenwick, Esq. regarding SBA EIDL LoansSBA EIDL HARDSHIP PROGRA Mhttps://shenwick.blogspot.com/2023/07/sba-eidl-hardship-program.htmlDefaulted SBA EIDL Loans, Limited Liability Company (LLC) and Cancellation of Debt Income (COD) under Section 108 of the Internal Revenue Codehttps://shenwick.blogspot.com/2023/07/defaulted-sba-eidl-loans-limited.htmlOffers In Compromise ("OIC") for Defaulted SBA EIDL loans and Section 108 of the Internal Revenue Code ("IRC"), Relief of Indebted Income, a Trap for the Unwary!https://shenwick.blogspot.com/2023/05/offers-in-compromise-oic-for-defaulted.htmlEIDL LOAN WORKOUTS AND BANKRUPTCY    https://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.htmlEIDL Loan Default Questions & Answers https://shenwick.blogspot.com/2022/10/eidl-loan-default-questions-answers.htmlEIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMIS Ehttps://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review.htmlEIDL Defaulted Loanshttps://shenwick.blogspot.com/2022/07/eidl-defaulted-loans.htmlNew Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan"https://shenwick.blogspot.com/2023/05/new-relief-program-for-sba-eidl.htmlEIDL LOANS and SBA OFFER IN COMPROMISE PROGRA Mhttps://shenwick.blogspot.com/2022/07/eidl-loans-and-sba-offer-in-compromise.htmlPPP & EIDL Fraudhttps://shenwick.blogspot.com/2022/08/ppp-eidl-fraud.htmlBetter to connect-What small business owners need to know about repaying loans tied to pandemic relief from the SBA EIDL Loanshttps://shenwick.blogspot.com/2022/11/better-to-connect-what-small-business.html

 Epiq is reporting that July Commercial Chapter 11 Filings Increase 71 Percent Over Last YearThe article can be found at https://finance.yahoo.com/news/epiq-july-commercial-chapter-11-172700880.htmlJim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

Getting a notice of intent to foreclose letter in the mail can be a scary moment. Should this happen to you, it’s important that you understand what this letter means and what is required of you to stop mortgage foreclosure in Pennsylvania. If you have fallen behind on your mortgage payments, you might receive a notice of intent to foreclose in the mail. This is a serious warning of a possible sheriff’s sale of your property. You will have 30 days to respond or settle debts with your lender before the foreclosure process starts in court. Homeowners can respond to these letters by filing for bankruptcy. When you do this in Pennsylvania, a mortgage foreclosure cannot take place. Instead, you will be given time to repay your lender and will be able to keep your home in Pennsylvania. Homeowners can call (215) 701-6519 to get a free case review from the Pennsylvania bankruptcy lawyers at Young, Marr, Mallis & Associates. What is a Notice of Intent to Foreclose Letter in Pennsylvania? Your home cannot be foreclosed upon and taken completely out of the blue in Pennsylvania. Before the process officially begins in court, you will receive a notice of intent to foreclose from the lender. In Pennsylvania, lenders must send notice of intent to foreclose letters to homeowners 30 days before the foreclosure begins. This gives borrowers time to contact our Pennsylvania bankruptcy lawyers and create a plan to prevent foreclosure. If you are financially capable of settling all outstanding mortgage payments with your lender, you can do so during this time. Our Bucks County bankruptcy lawyers might also be able to negotiate an agreement that works for all parties involved, allowing you to retain your property and avoid a foreclosure battle entirely. Notice of intent to foreclose letters are relatively standard documents. The letter you receive from the lender will name you, the property owner, and explain that you are in serious default on your loan. The document will also explain that you have 30 days to cure your mortgage. Otherwise, a lawsuit will follow in court, possibly resulting in mortgage foreclosure. The letter will also give notice of a likely sheriff’s sale of your property in Pennsylvania. Notice of intent to foreclose letters are serious documents and should not be taken as a baseless threat but as a likely indication the fact that you could lose your home in Pennsylvania. A notice of intent to foreclose does not mean your home will be taken immediately. A process must follow the initial letter. All foreclosures in Pennsylvania happen in court. If a lender is threatening you in any way or you believe that the notice of intent to foreclose was a mistake, inform our attorneys right away. How Soon Should You Respond to a Notice of Intent to Foreclose Letter in Pennsylvania? Immediately responding to a notice of intent to foreclose letter is crucial, as failure to respond could cause you to lose ownership of your home. As mentioned, homeowners have 30 days to respond to a notice of intent to foreclose letter and figure out a path forward that allows them to keep their properties. If you do not respond, a sheriff’s sale will eventually commence, where your home may be auctioned off to the highest bidder. While you have 30 days to get your affairs in order, it is best to do so immediately. Once you are served an official foreclosure complaint, the foreclosure process will become a court matter, and negotiating with a lender might be more challenging. After reviewing your finances, our attorneys will determine the likelihood of a lender agreeing to an arrangement that allows you to repay outstanding mortgage payments without the threat of foreclosure. The longer our attorneys have to do this, the more likely we are to succeed in negotiations. That said, not all lenders are open to the possibility of negotiations, especially if they can sell homes in sheriff’s sales and recoup the debts homeowners owe. Do not wait to respond to a notice of intent to foreclose, as doing so could make it appear that you are indifferent to a possible mortgage foreclosure and could harm your future case. How Can You Deal with a Notice of Intent to Foreclose in Pennsylvania? You know your financial situation better than anyone. If you get a notice of intent to foreclose letter in the mail, and you know that you will be unable to immediately repay your lender to avoid a sheriff’s sale of your property, filing for bankruptcy might be the only real solution in Pennsylvania. Homeowners that file for bankruptcy can stop all debt collection efforts from creditors, including sheriff’s sales and mortgage foreclosures. This is because an automatic stay will take effect, shielding you from such action. Bankruptcy will allow you to repay your debts over time, whether through a repayment plan or by liquidating certain assets. Additionally, some of your debts might be dischargeable in bankruptcy, eliminating them and allowing you to focus on repaying your mortgage alone. Once you settle all outstanding debts in bankruptcy, your home will no longer be in jeopardy. Depending on your finances, you will be eligible to file for Chapter 7 or Chapter 13 bankruptcy in Pennsylvania. Each chapter of bankruptcy takes varying times to complete. In some cases, lenders act in predatory ways, taking advantage of prospective homeowners and giving them an inappropriate mortgage based on their finances. If our attorneys can find proof of predatory lending practices that violate Pennsylvania or federal lending laws, we can put a stop to an impending foreclosure. As not all lenders act predatorily, this might not be an option in all cases, leaving bankruptcy as the primary solution for some homeowners in Pennsylvania. Call Our Pennsylvania Lawyers to Stop Mortgage Foreclosure Today By calling Young, Marr, Mallis & Associates at (215) 701-6519, you can discuss your case for free with our Philadelphia bankruptcy lawyers.

 KCRA has New Biden plan cuts student loan payments for millions to $0. Will it be the next legal battle?https://www.kcra.com/article/biden-new-student-loan-payment-plan-explained/44690843Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

Getting an Act 91 from your bank warning you of an imminent foreclosure can be frightening. But how serious is this letter, and how can homeowners in Pennsylvania respond to it? Banks send Act 91 notice of foreclosure letters when homeowners have defaulted on their mortgages. This is done to remain in compliance with Pennsylvania laws surrounding mortgage foreclosure. If you get an Act 91 notice of foreclosure letter, you must respond immediately and start building your defense against foreclosure. Within 30 days of getting this letter, you might be served with a mortgage foreclosure lawsuit. Should this happen, and you are unable to cure your mortgage, you can file for bankruptcy to repay your lender and retain your property in Pennsylvania. You can schedule a free case assessment with our Philadelphia bankruptcy lawyers when you call Young, Marr, Mallis & Associates at (215) 701-6519. What is an Act 91 Notice of Foreclosure in Pennsylvania? In Pennsylvania, there are certain procedures a lender must follow if they intend to foreclose upon a borrower’s residential property. This includes sending certain notices to a borrower, such as an Act 91 notice letter. Foreclosure is a complicated process. There are laws in place to ensure all parties are properly informed and have time to respond to certain actions. This includes a law requiring lenders to send homeowners an Act 91 notice, the final notice before the foreclosure begins. Act 91 notices are generally sent to homeowners with conventional home mortgages. If you have a mortgage through the Federal Housing Administration or the U.S. Department of Agriculture, you will receive a different notice all together, an Act 6 notice. Regardless of the specific notice you receive, it will generally contain similar information, whether it is an Act 91 notice or an Act 6 notice. If you receive a notice of foreclosure in the mail from your bank, confer with our Pennsylvania bankruptcy lawyers. The letter will likely comply with Act 91, meaning you might not receive another notice before the foreclosure process starts in court, giving you little time to act. Those that get Act 91 notices might also be eligible for assistance through the Homeowners’ Emergency Mortgage Assistance Program. When Will You Receive an Act 91 Notice of Foreclosure in Pennsylvania? Defaulting on one’s mortgage, or failing to meet mortgage payments for some time, will likely result in a borrower receiving an Act 91 notice of foreclosure letter in the mail from their bank. Banks can start mortgage foreclosure in Pennsylvania when borrowers have been delinquent for at least 120 days. So, if you have missed mortgage payments for a few months, your home could be foreclosed upon relatively quickly. Before this can happen, banks must send notices to borrowers, such as Act 6 and Act 91 notices. Again, lenders generally send these notices simultaneously, within the same letter. These letters must be sent 30 days before mortgage foreclosure filings are submitted to the court, meaning homeowners might receive them in as little as 90 days of defaulting on their mortgages. If you are at risk of receiving an Act 91 notice because you are about to default on your mortgage, you can contact your bank and attempt to negotiate an agreement that helps you avoid foreclosure. Banks are sometimes more or less open to negotiations based on a borrower’s specific situation and delinquency status. What Should You Do if You Get an Act 91 Notice of Foreclosure in Pennsylvania? If you receive a letter from your bank regarding imminent foreclosure, inspect it to see if it complies with Act 91 rules. If it does, you will have about a month to respond to your lender before a foreclosure case is filed in court in Pennsylvania. Do not ignore an Act 91 notice of foreclosure letter. Doing so could put you at risk of losing your home. Homeowners generally have 30 days between receiving this letter and being served with a foreclosure lawsuit. After getting an Act 91 notice of foreclosure letter from your bank, contact our lawyers. Our Trevose, PA bankruptcy attorneys can begin building a defense against foreclosure, which might include finding proof of your bank’s predatory lending practices. State and federal laws protect homeowners from foreclosure in certain situations, which our attorneys may be able to cite in your defense. Suppose you do not act after receiving a notice of foreclosure letter. In that case, you may be unable to build a viable defense and be at a greater risk of your home being foreclosed upon in Pennsylvania. Can You Save Your Home if You Get an Act 91 Notice of Foreclosure in Pennsylvania? While certainly serious, an Act 91 notice of foreclosure letter is not the end of the world. Even if you do not have a defense against foreclosure or you cannot cure your mortgage before foreclosure takes place, there are ways for you to retain your home in Pennsylvania. When foreclosure is imminent, homeowners can file for bankruptcy. Doing this will halt any attempts to foreclose upon your home. Even if foreclosure has begun and your home is about to be sold in a sheriff’s sale, filing for bankruptcy can stop that sale from occurring. Pennsylvania does not have a right of redemption for homeowners whose properties have been sold in sheriff’s sales, which is why stopping such sales from happening is of the utmost importance. If the majority of your debt surrounds your mortgage, you may be able to settle it within a matter of months or a few short years, depending on the bankruptcy chapter you file. When a homeowner enters bankruptcy, lenders might be more open to negotiating to lower a homeowner’s immediate mortgage payments and restructure the existing agreement to make payments easier for a homeowner. Even if your bank is not open to negotiations, bankruptcy can enable you to repay your lender, whether through a repayment plan or asset liquidation, so that you are no longer at risk of losing your home in Pennsylvania. Call Our Bankruptcy Lawyers to Avoid Foreclosure in Pennsylvania Call our Pennsylvania bankruptcy lawyers at (215) 701-6519 to discuss your case with Young, Marr, Mallis & Associates today.