Sometimes the solution to a problem is obvious or simple, but not always.  Particularly in multifaceted conflict (such as complex litigation, restructuring negotiations, business divorces, and multi-party disputes), the path to resolution often requires thinking outside of the box. To illustrate, let’s consider Drew Daywalt’s “The Day the Crayons Quit.”  Duncan has a coloring assignment at school.  He opens his crayon box but finds a stack of letters inside instead of crayons.  The letters are from the crayons.  The red crayon complains that Duncan uses it to color everything.  Red crayon needs to rest.  The black crayon complains it is only used to draw outlines and never to fill in the space.  Black crayon needs a chance to be a focal point.  The pink crayon complains that Duncan has not used pink in over a year.  Pink crayon needs to be involved.  The white crayon complains that it is the same color as the paper.  It feels invisible.  White crayon needs to be seen. Duncan needs to color.  Duncan thinks hard.  Then he colors a beautiful picture with only a few tiny spots of red, a big black rainbow, a pink airplane and a pink dinosaur, a yellow sky with white clouds, and green water with a white boat and a white cat. Duncan deftly resolved a multifaceted conflict.  He listened to each crayon’s concerns and needs.  Then, Duncan thought outside of the conventional crayon box.  He found a creative resolution that met everyone’s needs, including his own. How does this translate to mediation?  Particularly in multifaceted disputes, the mediator must actively listen to each party’s needs, while creatively exploring different ways to balance and meet each of the party’s needs.  The beauty of mediation is that we are not confined to a specific structure for resolution.  Instead, we can be creative and go outside the conventional box to find a path to resolution that is tailored to the needs of the parties.  Author’s Note: As a mediator, I am a “forever student” always seeking new ways to help people find a path to resolution in mediation.  As a parent, I have spent a gazillion hours reading books to my children.  Oftentimes, these books teach me new ways to approach conflict resolution.  In this case, Drew Daywalt’s “The Day the Crayons Quit” inspired this post. Disclaimer:  Nothing contained herein constitutes legal advice nor does it create a professional relationship. Mediator Insights - Think Outside the (Crayon) Box The post Mediator Insights: Thinking Outside of the (Crayon) Box appeared first on Sylvia Mayer Law.

WCNC has an article titled "Better to connect-What small business owners need to know about repaying loans tied to pandemic relief from the SBA"  EIDL Loans. SBA EIDL loan repayment begin this month! As the article notes many borrowers will be unable to repay their EIDL loans.The article can be found at https://www.wcnc.com/article/money/pandemic-sba-small-business-loan-money-local/275-ba12435e-ca7e-48d8-9cad-1c251bbdf706Borrowers who cannot repay their loans, should contact Jim Shenwick, Esq.  [email protected] 363 3391 for assistance with these problems. 

If an illness, injury, or disability prevents you from working in Pennsylvania, you may be able to get disability benefits. To get benefits as soon as possible, applicants can turn to our experienced attorneys for help. Before you can get disability benefits in Pennsylvania, you need to apply for them. This process might take weeks or months, depending on the information you need to gather. Once you apply, it may take five months before you hear back from the Social Security Administration (SSA). Once approved, it will likely be about five months before you start getting benefits. Because disability benefits are for the long-term, recipients can often get them for life as long as they remain eligible. To get benefits sooner, ask our experienced disability lawyers for help with your application. We’re here to help Pennsylvanians get the disability benefits they deserve. For a free case evaluation with the Pennsylvania disability lawyers at Young, Marr, Mallis & Deane, call today at (215) 515-2954. How Long Does it Take to Apply for Disability Benefits in Pennsylvania? Applying for disability benefits can be a long, complicated process. The Social Security Administration often requires detailed documents and information from applicants, which can be difficult to prepare. To speed up the process and ensure your initial application is complete, ask our Pennsylvania disability lawyers for help. An application for Social Security Disability Insurance (SSDI) benefits is detailed. The SSA wants to know certain information about your disability and finances before approving an application. For example, you may need to provide medical records that outline your condition and financial information, like previous tax returns. After you submit an application, the SSA might request additional documents. Compiling the required information for an SSDI disability application can be challenging. Not everyone has the time or ability to gather the necessary records, like birth certificates and proof of previous employment, or reach out to doctors to access medical records. Our attorneys can help you prepare your SSDI application so that you can more easily get disability benefits in Pennsylvania. How Long Does it Take to Get Approved for Disability Benefits in Pennsylvania? After you apply for disability benefits in Pennsylvania, the Social Security Administration will review your claim. This process can take several months, so it’s important for applicants to be prepared for a potential delay. On average, the SSA takes three to five months to review a claim for disability benefits in Pennsylvania. During the review process, the SSA may request an interview to clarify certain matters. Our Philadelphia disability lawyers can help you prepare for any question from an SSA representative during this stage. Unfortunately, not all disability benefit applications are initially approved. Contact our attorneys if your claim was denied after several months of review. You may be able to file an appeal with the SSA. This process alone might take upwards of a year, so it’s important to have one of our experienced lawyers by your side during the appeals process for SSDI benefits in Pennsylvania. How Long Until I Start Getting Disability Benefits in Pennsylvania? If your application for disability benefits is approved, you might think you’ll start receiving payments right away. That’s not usually the case. Generally, the Social Security Administration imposes a waiting period after claims are approval to ensure applicants remain eligible for disability benefits in Pennsylvania. Once the SSA approves your application for SSDI benefits, you will most likely enter into a waiting period. Only certain injuries, illnesses, and disabilities qualify applicants for immediate benefits in Pennsylvania. To learn whether or not you qualify, speak to our Pennsylvania disability lawyers. In most cases, there is a five-month waiting period after claim approval in Pennsylvania. You won’t receive any disability benefit payments from the SSA during this time. Once the five months are up, you’ll have to wait another month before you receive a check. That’s the way SSDI payments are structured. This can be confusing for SSDI recipients, so ask our attorneys for clarification. Disability benefits are sent out every month, whether by check or direct deposit. The exact day of the month you will receive your check will depend on your birthday. For How Long Can I Get Pennsylvania Disability Benefits? Once you are approved for SSDI benefits in Pennsylvania, you may be able to get monthly payments for the rest of your life. If you continue to remain eligible for disability benefits, you can continue to get them in Pennsylvania. Social Security Disability Insurance benefits are meant to support those who have worked for many years but no longer can because of a qualifying injury, disability, or illness. These benefits are for the long-term, often for life. However, certain things might affect your ability to get disability benefits forever. The SSA imposes income limits for SSDI recipients in Pennsylvania and elsewhere. In 2023, the substantial gainful activity (SGA) limit is $2,460 per month for blind recipients and $1,470 per month for non-blind recipients. You may enter into a trial work period if you earn over $1,050 a month in 2023. If this period extends over nine months, you may lose your access to benefits, despite earning under the monthly SGA limit. To better understand how income limits might impact you, speak to our Quakertown disability lawyers. An improved condition can also impact your eligibility for disability benefits in Pennsylvania. The SSA conducts periodic reviews of recipients’ medical conditions, the frequency of which depends on each recipient’s prognosis. Disability benefit recipients must also report any condition changes to the SSA. Ask Our Pennsylvania Lawyers About Disability Benefits Today If you need to get disability benefits in Pennsylvania, our attorneys can help. For a free case evaluation with the Upper Darby disability lawyers at Young, Marr, Mallis & Deane, call today at (215) 515-2954.

 Forbes has an article about the consequences of filing for personal bankruptcy. The article can be found at   https://www.forbes.com/advisor/debt-relief/bankruptcy-consequences/Individuals with questions about personal bankruptcy can contact Jim Shenwick Esq.   [email protected]   917 363 3391

 When a bankruptcy petition is filed, section 362(a) of the Bankruptcy Code states that the bankruptcy petition provides a stay on the commencement or continuation of an action or proceeding against the debtor.An "Automatic Stay" provides relief to the debtor by stopping all litigation and collection efforts against him, giving him pause and time to reorganize his finances.After bankruptcy filing, creditors who wish to continue litigation against the debtor must file a motion to lift the stay in Bankruptcy Court. The most common bankruptcy motion is a motion to lift the stay.Last week, we filed two motions to lift the stay, one for a landlord and one for a creditor, so they could finalize an eviction and foreclosure.The law stayed litigation and landlord tenant actions during the pandemic, now creditors and landlords are free to pursue litigation, resulting in increased bankruptcy filings and motions to lift the stay.The Second Circuit Court of Appeals recently decided a Motion Lift Stay case, In re Fogarty, 39 F. 4th 62 Court of Appeals, 2nd Circuit 2022 which demonstrates the complexity and questions that can arise in lift stay practice.Debtor Eileen Fogarty owned a 99% interest in 72 Grandview LLC, which in turn owned a residential property that Fogarty occupied as her primary residence. Bayview Loan Servicing LLC initiated a foreclosure action in which both 72 Grandview LLC and Fogarty were named as defendants. After Bayview obtained a judgment, Fogarty filed a Chapter 7 bankruptcy petition  and Bayview proceeded with the foreclosure sale without seeking relief (i.e. filing a motion for relief from the automatic stay) from the bankruptcy court.Fogarty then sought sanctions against Bayview arguing that Bayview willfully violated the automatic stay. The bankruptcy court denied Fogarty's motion, but the district court reversed that decision and Bayview appealed to the 2nd Circuit Court of Appeals. The 2nd Circuit ruled that Bayview violated the automatic stay based on the fact that the debtor was a named party in the foreclosure proceedings (even if the debtor held only a possessory interest in the property) and Bayview was aware that Fogarty had filed a bankruptcy petition.The takeaway from the Fogarty case, is that a creditor must proceed with cause after a Debtor files for bankruptcy and when in doubt a creditor should file a motion to lift stay before foreclosing on property. Creditors that have questions regarding Motions to Lift Stay can contact Jim Shenwick, Esq   [email protected]   917 363 3391.    

Disability is a complex and confusing program.  Even those who are already dealing with Social Security Disability Insurance (SSDI) might have questions about their benefits and how they can proceed.  One common question is about spousal benefits. Generally speaking, spouses of current disability recipients can also apply for disability if they become disabled, too.  Additionally, non-disabled spouses can often receive benefits for themselves and their children if their spouse is disabled.  However, they must meet certain age requirements or have minor children to qualify. For a free case review, call the Philadelphia Social Security disability lawyers at Young, Marr, Mallis & Associates today at (215) 515-2954. Can Disabled Spouses Both Get Disability Benefits in Pennsylvania? SSDI is earned through years of work – and if you become disabled, it should be there to help you with your lost income.  If both spouses worked for many years before becoming disabled, they can each claim disability benefits on their own records.  However, they both must meet the qualifications for the program to receive benefits. This means that both spouses must each be independently disabled.  To be “disabled” means that you have one of the many qualifying conditions that the Social Security Administration (SSA) lays out in their “Blue Book” of impairments. On top of that, you must be unable to work to support yourself.  Many people with qualifying conditions are not legally “disabled” by that condition and can still go to work and support themselves and their families.  For a disability to qualify, you must be so affected by it that you cannot work. If you meet these two major qualifications and also have the work history to support your SSDI claim, our Pennsylvania disability attorneys can help you can claim disability benefits even if your spouse already gets benefits. Benefit Rates for Disabled Couples Receiving SSDI In Pennsylvania Calculating benefits for disabled couples where both receive SSDI benefits is a bit complex.  Spouses might be able to claim benefits on the other spouse’s record, which could potentially be higher or lower than the benefits they could claim on their own record. This can happen in a few different ways.  For example, imagine a husband and wife who both started working in 1980.  Say the husband worked for 40 years before becoming disabled in 2020, and the wife worked for 15 years, then became a homemaker in 1995.  If she became disabled years later in 2020, she would have a lower work record and could potentially apply for higher benefits on her husband’s record. In contrast, picture another couple, again beginning work in 1980.  If the husband worked for 25 years and became disabled in 2005, but the wife kept working and became disabled in 2020 after 40 years of work, she could be entitled to higher benefits and would not use her husband’s record.  But could he use her work record? Questions like these are precisely why you should speak with our Allentown disability lawyers about your SSDI application if you and your spouse are both seeking disability benefits. Also note that, generally speaking, it does not hurt your disabled spouse’s SSDI benefits if you continue working.  This allows you to keep working and building a strong work record that you can count on later if you also become disabled.  It also allows homemakers to go back to work after their spouse begins receiving disability.  This often results in mismatched work records and differing disability benefits for each spouse, even if they are otherwise close in age. Claiming Disability as a Divorced Spouse in Pennsylvania Currently married spouses can often claim disability on their spouse’s record, but divorced spouses might also be able to.  If your former spouse receives Social Security benefits and you are divorced but not remarried, you could be entitled to benefits on their record.  You must also have been married to them for at least 10 years before the divorce and be at least 62 years of age to qualify for these benefits.  Speak with our Bensalem disability lawyers for help. SSDI Benefits for Non-Disabled Spouses in Pennsylvania The last area of benefits that you might be interested in as the spouse of someone already receiving SSDI is spousal benefits paid as part of the “family benefits” program.  Here, rather than receiving benefits for one’s own disability, the family of a disabled worker receives additional benefits to help support other people in the household. Family benefits are typically paid to spouses and minor children, but there are some additional ways children can qualify for benefits.  Namely, children can also receive family benefits if they are over 18 but were disabled before turning 22, or they can get benefits if they are 18 but haven’t graduated high school yet. Family benefits are often paid at a rate of 50% of the disabled worker’s benefits to each eligible family member.  However, the total benefits for the family might be capped.  This means that in a family with a spouse and multiple children, it might be impossible to pay the full 50% benefit to each family member. Spouses need to meet special rules to qualify for family benefits as well and must be either 62 years old or caring for one of the disabled workers’ children.  If the spouse is claiming benefits on the basis of caring for a child, they can also qualify for family benefits if the child they care for is also disabled and has been since before age 22.  This means that the spouse of a disabled worker that has an adult child with Down syndrome, for example, could still be entitled to family benefits if they care for that disabled child. Call Our Pennsylvania Disability Lawyers Today For help with a disability application or questions about your benefits, call the Levittown disability attorneys at Young, Marr, Mallis & Associates now at (215) 515-2954.

Community property works differently in bankruptcy. I probably don’t have to tell you that. On the issue of assets and debts, community property is pretty straightforward. All of the community property comes into the estate upon the commencement of a bankruptcy case, even when only one spouse files. §541(a)(2). Every creditor with a right to […] The post When The Marital Community Doesn’t Get A Bankruptcy Discharge appeared first on Bankruptcy Mastery.

 One of the big themes appearing in this year's National Conference of Bankruptcy Judges was the effect of mass tort cases on the bankruptcy system. The panel Mass Torts in Bankruptcy: Two Steps Forward or Two Steps Back focused on third party releases. The speakers were Hon. Craig Goldblatt (Bankr. D. Del.), Karen Cordry from the National Association of Attorneys' General, Prof. Douglas Baird and Sander Esserman.  Third party releases have been in the news a lot lately. In Purdue Pharma and Mahwah Bergen Retail Group, District Courts struck down overly broad provisions, while they were allowed in the Mallinckrodt PLC case. The panelists discussed the history of third party releases. Karen Cordry made the observation that the first time an innovation in the law is allowed it's based on unique circumstances, then it's allowed based on prior precedent and then it's settled law. Releases for Guarantors DisfavoredThird party releases were originally rejected by the Ninth and Tenth Circuits.Resorts Int’l v. Lowenschuss (In re Lowenschuss), 67 F.3d 1394 (9th Cir. 1995); In re Western Real Estate Fund, Inc., et al., 922 F.2d 592 (10th Cir. 1991). . These cases involved guarantor liability. and relied on section 524(e) to say that the discharge in bankruptcy doesn't benefit anyone other than the debtor. The Fifth Circuit continued with a hard line, rejecting not only third party releases but exculpation clauses. Bank of New York Trust Co., NA v. Official Unsecured Creditors' Comm. (In re Pacific Lumber Co.), 584 F.3d 229 (5th Cir. 2009). However, the Fifth Circuit's ruling was not based on guarantor claims like the earlier 9th and 10th circuit decisions. Mass Tort Cases Provide a Different JustificationSander Esserman provided what he described as the other side of the story. In the Johns-Manville case, Judge Burton Lifland was faced with a mass tort case that, like the Railroad equity receiverships threatened to go on forever. There was a profitable company faced with tort suits. At first its one, two or three at a time. The company is winning most of the cases. The plaintiff's lawyers threaten to just keep filing more suits until they got a big victory.For Judge Lifland, the question was wow do we get out of this mess? How do you give protection to people who want to contribute to a plan?  How do you protect the right of future claimants? His solution was to create what was later codified as 11 U.S.C. Sec. 524(g). It provided for both payment of future claims and third party releases. When the insurance companies wrote a check, they would be done. The insurance companies needed a release because they could not be assured that tendering policy limits would be enough. They could be faced with bad faith claims, direct claims and policies without limits.  What made the plan work as a practical matter was that the vast majority of claims voted in favor, it protected constitutional jury trial rights for those who wanted to exercise them and without the third party release, there would be no plan. This was later codified into law by Congress. However, at the time, Judge Lifland was crafting a remedy without clear statutory authority. The  mass tort claims provide a clear counterpoint to the guarantor cases. In the mass tort cases, the releases were necessary to provide a greater economic benefit to the creditor body as a whole as opposed to merely protecting someone who did not want to file bankruptcy.Ultimately the Third and Fourth Circuits endorsed third party releases in the mass tort context.  The Baird HypotheticalProf. Baird testified before Congress on July 28, 2021. In his testimony he presented the following hypothetical:ABC Corporation is a defendant in mass tort litigation There are claims about failure to warn the public about danger of its product. Some members of the family are named defendants.  The family members had received substantial dividends. After negotiations, the parties reach a global settlement. The former owners agree to make payment into a trust, but only if they receive third party releases. It is estimated creditors will get 85% of their claims paid. 92% of the creditors vote in favor of the plan. Can the Court bind the 8% who voted no? If the hypothetical sounds familiar, its very similar to the settlement with the Sackler family in the Purdue Pharma bankruptcy.Prof. Baird argued that it’s not a discharge, it’s a settlement. He pointed to the example that a trustee can settle fraudulent transfer claims under 11 U.S.C. Sec. 544 even those those claims could have been pursued by creditors outside of bankruptcy. He argued that the trustee is representing groups of claims that the debtor has with some third party. The Trustee is pursuing that claim on their account and settling that claim on their account. The settling party is going to say, "Why should I have one truce if the war isn’t over?" He said, "This isn’t outrageous." He then said, I have two buts coming. We should be dramatically limiting third party releases. The parties getting released should be paying the full value of their liability and the settlement should receive overwhelming consent. The Discussion Becomes LivelyOn of the panelists (Karen Cordry I think) bemoaned the fact that every case was becoming special. She compared it to Lake Woebegone where all the children are above average.  She said that to say you can have it in bankruptcy law doesn’t mean you have it in our bankruptcy law. She asked do we have Section 544(c)? (Section 544 as written ends with Section 544(b)). One of her fellows pointed out that we read lots of things into the code. Even if we don’t have an actual Section 544(c), we have a virtual Section 544(c). However, someone their water on that idea by saying that you won’t get you anywhere with the Supreme Court.  This power was explicitly rejected by the Supreme Court in Caplin v. Marine Midland Grace Trust Co., 406 U.S. 416 (1972). The Texas Two Step From there, the panel ventured into a discussion of the Texas Two Step. This was discussed extensively in other presentations so I am going to truncate my discussion here. Under the Texas Two Step, a company splits itself into an operating company and a liability company. It assigns all of the liabilities to the bad company. To avoid being a fraudulent conveyance, the good company has to assign sufficient assets to the bad company to cover the liabilities. This is a type of third party release because it is intended to shield the operating company from lawsuits. the whole premise of the Texas Two Step relies on the good company promising to pay all or most of the debts of the bad company in return for a release. Prof. Baird said he saw two issues. On the one hand, there is a slam dunk fraudulent conveyance claim without writing the big check. However, the problem is that the good company won't write the check unless they get the third party release. To do this, you have to be able to accurately value the liabilities. What if the tort claims are actually weak? Ms. Cordry  said that it affects negotiating positions. If the States know that there is no possibility of a third party release, they can take one position. However, if the debtor can just go into court and get a release, there is more of an incentive to make the deal. Opt In and Opt Out Releases. The panel then switched the discussion to opt in releases. Creditors will only be bound if they check a box saying they will be bound by release and the settling parties will only fund if 90% say yes.  If creditors have the ability to take or leave the settlement, it is not controversial.  However, what if the release requires a creditor to opt out? That depends on how conspicuous the release language. One of the panelists referred to disclosures that contain so many words that it actually discloses very little. Instead of creditor opting in, they have to opt out. What if most people don’t read and respond? What if only half of creditors return a ballot but 90% of those opt in and 10% opt out.   Under an opt in release, that would mean that only 45% of creditors would have opted in. However, if it were an opt out release, only the 10% of the 50% who returned ballots opting out (5% in total) would be exempt from the release.  Using a 363 Sale to Obtain a Third Party ReleaseThe panel also discussed a concept I had not thought of before. What is ABC Company owns an insurance policy. When it files bankruptcy, it proposes to sell all its rights under the policy back to the insurance company free and clear of liens. The sale would feature standard buyer protections, including that there would be no successor liability and there would be an injunction against pursuing claims against the buyer. Assuming that it meets the section  363 standard is anything else required? How is that different than tendering policy limits? How are third party releases different than sales free and clear of liens? Under another scenario, ABC Corp. has assets sufficient to cover greatest estimate of liability but ABC Corp. thinks the tort system is random with winners and losers. It doesn’t want to put ABC Corp. into bankruptcy because it will harm enterprise value.  What about doing a 363 type sale before hand? Sell the good company and leave a pot of cash in the bad company. The obvious problem here is that the good company has to file bankruptcy in order to do a sale free and clear of liens. If the parties attempt to do a 363 type sale outside of bankruptcy, it won't have the statutory protections and could be attacked by creditors. Is this a Problem Bankruptcy Can Solve? Rather than resolving these mass injury problems through the tort system or bankruptcy, government can set up a specific program to handle these claims. For coal miners, Congress created a program to compensate victims of Black Lung Disease. Workman's compensation laws protect employers at the state level. Perhaps the solution to asbestos and opioids and other societal problems is for Congress to set up a collective scheme to be funded from tax dollars outside of bankruptcy. The biggest obstacle would be getting Congress to act in an era of divided governance and suspicion of big government programs. Notwithstanding the obstacles, Ms. Cordry said that such a collective program is the only way to accomplish the goal constitutionally. Take-AwaysThe idea that the split in circuits over whether to allow third party releases is really a split between circuits dealing with guarantor claims and those dealing with mass tort claims was new to me. The potential use of Section 363 sales to accomplish third party releases was also something I had not heard before. I was also struck with the idea that bankruptcy courts dealing with new and thorny problems are like the engineered dinosaurs in Jurassic Park, that nature will find a way. Judge Lifland created Section 524(g) before Congress enacted it into law. It may be that the Code will follow the necessities of solving big, messy problems. Either that or the Supreme Court will squash the effort like the giant foot in the opening credits of Monty Python's Flying Circus.  I am also struck by the similarities between bankruptcy and class actions. Bankruptcy is essentially a class action between the debtor and its creditors. If bankruptcy can be expanded to be a class action between the debtor, its creditors and persons liable to the debtor, it may be possible to solve these problems through the vehicle of a class settlement rather than trying to incorporate third party releases into bankruptcy law. I have a draft of an article on third party releases that is going through the editing process. One realization that hits me when I attend programs like this is just how much updating I will have to do from my original draft in February 2022.The materials for this panel can be found here.

Medical debt can seem ever-growing, and debtors may have difficulty meeting payments while getting medical treatment. To erase your medical debt and move forward with your life, you can file for bankruptcy in Pennsylvania. If you have overwhelming medical debt in Pennsylvania, you can file for bankruptcy to eliminate it. Our attorneys can help debtors file for either Chapter 7 or Chapter 13 bankruptcy, depending on their income and preferences. The former works through liquidation, while the latter works via a repayment plan. Whichever path you choose, you can discharge your medical debt within a few months or years by filing for bankruptcy in Pennsylvania. While pursuing bankruptcy can feel daunting, it can be the answer to overwhelming medical debt that you need to disappear. We’re here to help debtors wipe the slate clean and regain financial stability. For a free case evaluation with the Philadelphia bankruptcy lawyers at Young, Marr, Mallis & Deane, call today at (215) 701-6519. Can You File for Medical Bankruptcy in Pennsylvania? Health care can be expensive, and people with or without insurance may have difficulty handling medical costs in Pennsylvania. The more treatments you require, the worse your debt may become. Those in serious medical debt may be unable to work because of their conditions or be unable to pay off creditors because of other debts. If medical debt has impacted your financial stability, consider filing for bankruptcy in Pennsylvania. “Medical bankruptcy” is an unofficial term, not a specific type of bankruptcy. However, you can use bankruptcy as a tool to eliminate your medical debt. Hospitals can be creditors, like everyone else. While this might contrast with how you view hospitals as a place for comfort and care, it is the case. If you owe a hospital money, it will want you to pay. So, medical debt is like many other types of dept. It is considered an unsecured debt and is easily dischargeable when you file for bankruptcy in Pennsylvania. Our Reading, PA bankruptcy lawyers can explain the benefits of erasing your medical debt and how to best do so. Which Type of Bankruptcy Should You File for to Eliminate Medical Debt in Pennsylvania? Depending on your income, your family’s finances, and the amount of medical debt you currently have, different types of bankruptcy might better suit your circumstances. Our Pennsylvania bankruptcy lawyers can assess your situation to determine whether or not you should file for Chapter 7 or Chapter 13 bankruptcy to eliminate your medical debt. Chapter 7 In order to be eligible to file for Chapter 7 bankruptcy in Pennsylvania, you must pass the means test. To qualify for Chapter 7, you can’t make over the average monthly income for your area. That’s because Chapter 7 works fast by liquating a debtor’s assets and paying off all debts within several months. If you need immediate relief from medical debt and pass the means test, filing for Chapter 7 bankruptcy might be ideal. However, if you have a family and assets that you can’t risk liquidating, Chapter 7 might not be right for you. To learn more about the ins and outs of Chapter 7 bankruptcy and how it can help you eliminate your medical debt, speak to our Pennsylvania bankruptcy lawyers. Chapter 13 If you have medical debt, you can eliminate it by filing for Chapter 13 bankruptcy in Pennsylvania. After you file, our Springfield, PA bankruptcy lawyers will devise a repayment plan. Once approved by the court, a repayment plan will go into effect. Your regular payments to medical creditors will be based on your disposable monthly income. With Chapter 13 bankruptcy, liquidation of assets is not necessary. Filing for Chapter 13 bankruptcy can be ideal for debtors with dependents that can’t risk losing their assets through liquidation. Generally, Chapter 13 bankruptcies can take about three to five years to complete. After that time, you can be entirely free from medical debt in Pennsylvania. Why Should You File for Bankruptcy in Pennsylvania if You Have Medical Debt? Medical debt can feel all-consuming, and people shouldn’t have to choose between their physical and financial health. That said, our attorneys understand that filing for bankruptcy is a big decision. Instead of viewing bankruptcy as a sign that your finances are unstable, see it as a vehicle to regain financial stability and eliminate medical debt. Automatic Stays Filing for bankruptcy when you have overwhelming medical debt can be wise. Immediately after you file, an automatic stay will go into effect. This is the case whether you file for Chapter 7 or Chapter 13 bankruptcy in Pennsylvania. This automatic stay prevents hospitals from contacting you regarding payments. An automatic stay can provide the immediate relief debtors need to take a deep breath and move forward with bankruptcy. Avoiding Lawsuits Creditors, including hospitals, might file a lawsuit against a debtor to get payment. This is never ideal, as a creditor lawsuit might put your home and bank accounts at risk. When you file for bankruptcy, you can eliminate all your debts and the chances that creditors will sue you for repayment. Whether you file for Chapter 7 or Chapter 13 bankruptcy, your medical debt can be repaid by the time bankruptcy ends, allowing you to avoid unnecessary lawsuits from medical creditors. Regaining Stability As medical debt grows, it can feel suffocating and overwhelming to anyone, especially those in need of further medical treatment. Hiring our Pennsylvania bankruptcy lawyers and filing for bankruptcy can allow you to hit the reset button, regain financial stability, and focus on your health. Call Our Pennsylvania Lawyers About Your Bankruptcy Case Today If you’re feeling overwhelmed by medical debt, our attorneys can help. For a free case evaluation with the Levittown bankruptcy lawyers at Young, Marr, Mallis & Deane, call today at (215) 701-6519.

 Yahoo is reporting that in October Individual Chapter 13 Bankruptcies Increase 27 Percent Over Last Year. The article can be found at https://lnkd.in/erj-t-4mJim Shenwick, Esq [email protected] 917 363 3391