The Pennsylvania Statute of Limitations on Debt Collection Did you know that in PA, your creditors have only a certain amount of time to try to collect a past-due debt from you? Your creditors are not legally permitted to pursue you forever for debt. Find out from an experienced Philadelphia bankruptcy lawyer how long your creditors have to try to collect debts from you, when the statute of limitations begins and how it gets restarted, what debts fall under PA’s statute of limitations, what to do when the statute of limitations runs out and creditors try to collect from you, and how to solve your debt problems during and after the statute of limitations. What the Statute of Limitations on Debt in PA Is For most types of debt, creditors have four years in Pennsylvania to sue you for unpaid debt.  What does the PA statute of limitations on debt (42 Pa. C.S. 5525(a)) do for you? It prevents creditors from filing a collection lawsuit once the statute of limitations runs out. When the Statute of Limitations Begins The PA statute of limitations on debt begins to run on the day the debt comes due. That day is usually established by your contract with the creditor.  For example, if your car loan retail installment contract includes a provision that failure to make two monthly payments in a row constitutes default, then the day after the last day you could have made the second payment on time will be the day the statute begins to run. Resetting the Statute of Limitations You can reset the statute of limitations by making a payment, making a partial payment, or negotiating for a new payment plan with the creditor. Do You Need to Pay After the Statute of Limitations Runs Out? For most debt, no. However, for some debt such as federal student loans, federal income tax, and PA state tax, there is no limit to the time the government has to sue you to collect that debt. Which Debts the Statute of Limitations Applies To The types of debt the PA statute of limitations governs are: Mortgage debtCar debtCredit card debtMedical debtPrivate student loan debtPromissory notesOral contractsDeficiency balances on mortgage or car loan accounts, when the collateral has been surrendered, repossessed, or foreclosedUnpaid second mortgages following foreclosure and sheriff’s sale The Statute of Limitations for unpaid second mortgages following foreclosure runs from on that debt runs from the date of the last payment made on the second mortgage, not from the date of the sale.  Be forewarned – if a promissory note was signed under seal, the lender may argue that the 20-year statute of limitations on documents under seal in PA applies. What to Do if a Debt Collector Tries Collecting After the Statute of Limitations Runs Out While a creditor cannot sue you if the statute of limitations has run, they can still call you and send you letters to try to collect on that debt. If a creditor calls you about unpaid debt, ask to have verification of that debt in writing. You are entitled to written verification of the type and amount of debt, the identity of the original creditor if the debt was sold, the date you allegedly became indebted, and the date you allegedly defaulted under the federal Fair Debt Collection Practices Act (FDCPA).  Under the FDCPA, you can also ask the creditor to stop contacting you about the debt whether or not the statute of limitations has run, and that creditor must comply. If the creditor fails to comply and continues collection efforts, you can sue that creditor in federal court and the court will impose mandatory monetary sanctions on the creditor. Debt Relief Programs If the PA statute of limitations has not run out on an unpaid debt and you are concerned about being sued, you might try negotiating a different payment plan or a reduced total with the creditor. Be advised that making a payment or entering a new agreement with a creditor restarts the statute of limitations. You might also consider consolidating your debt if you have more than one debt. A debt consolidation company negotiates with your creditors for you. You make one payment to the debt consolidation company, and the company in turn pays your creditors.    The downside of debt consolidation is that your creditors are not bound to enter any consolidation plan. They can still sue you even if you have consolidated all of your other debts. Filing for Bankruptcy in PA The only way to force creditors to the table is to file bankruptcy. Whether you need to get medical or credit card debt discharged, you need to catch up with past-due car or mortgage payments, or you need to renegotiate your mortgage or car loan, bankruptcy is the tool to get that done. Talk With an Experienced Bankruptcy Lawyer to Help Your Case Your initial case consultation is free of charge. Take this opportunity to explore your options in dealing with debt you cannot pay, whether the statute of limitations has run or not. Call us today – we’ve helped thousands of Pennsylvanians greatly improve their financial situation, including many individuals and families who did not realize how much bankruptcy could help to quickly turn their life around. Find out how we can put a smile on your face and help you get a fresh start too. The post The Pennsylvania Statute of Limitations on Debt Collection appeared first on David M. Offen, Attorney at Law.

 Keith Fogg wrote a post on Tenancy by the Entirety and Bankruptcy Exemptions, which can be found at https://procedurallytaxing.com/tenancy-by-the-entirety-and-bankruptcy-exemptions/ The post and the cited case demonstrate that debtors who live in New York State and own appreciated property together (Tenancy by Entirety property) may be better off not filing for bankruptcy and instead using NYS exemptions instead. Jim Shenwick

 https://ceoworld.biz/2021/12/14/4-tips-to-avoid-bankruptcy-while-running-a-startup/

Converting from Chapter 13 Bankruptcy to Chapter 7 There are instances where someone who files Chapter 13 bankruptcy should or must convert to a Chapter 7, and the bankruptcy process allows for this. This article explains why converting a Chapter 13 to a Chapter 7 happens and how. If you are contemplating either Chapter 13 or Chapter 7 bankruptcy, give our experienced Philadelphia bankruptcy lawyers a call. We assess your particular financial situation and advise you as to your options – free of charge! Chapter 13 Bankruptcy The primary feature of Chapter 13 bankruptcy is your three- or five-year repayment plan, through which you can catch up with past-due debt such as: Mortgage paymentsCar loan paymentsCar lease paymentsChild support arrearsSpousal support arrearsStudent loansIncome taxesOther taxesGovernment fines or fees You can also file Chapter 13 to strip off second mortgages as unsecured debt and get that debt discharged, and cram down car loans to current retail value at prime plus 1-3% interest and own the car at the end of your plan. If you are at the end of a car lease, want to keep the car, but cannot afford to pay the end-of-lease balloon payment, you can pay the balloon payment off through your Chapter 13 plan and own the car when your plan is fully paid. Qualifying for Chapter 13 To qualify to file Chapter 13, you must have steady income and enough disposable income to fund your plan. “Disposable income” is income that is in excess of the money you need to pay your monthly expenses.  Chapter 7 Bankruptcy Chapter 7 bankruptcy is a four to six month process during which you disclose your income, assets, expenses, and debts, and you are discharged of unsecured debt you cannot afford to pay. “Discharged debts” are debts that you are no longer personally responsible for paying. People who file Chapter 7 often have loans, credit card debt or medical bills they cannot pay. People also use Chapter 7 to legally surrender unaffordable collateral such as real property or a car. The underlying debt gets discharged. Qualifying for Chapter 7 In order to file Chapter 7 bankruptcy, you must pass the “means test,” which compares your income minus qualifying expenses to the state median income for a family of your size. If your income is less than the state median income, you qualify to file Chapter 7 bankruptcy. Congress put the means test in place to prevent abuse of the Chapter 7 process by those who earn enough income to pay back at least a portion of the debt they owe. When You Can Convert from Chapter 13 to Chapter 7 You can convert from Chapter 13 to Chapter 7 at any time if you no longer have the income to fund your Chapter 13 plan. This can happen if your expenses unexpectedly increase or if your income unexpectedly decreases.  Note that conversion to Chapter 7 is available only to Chapter 13 debtors who have not received a bankruptcy discharge within the previous eight years. Also, you should be able to  pass the means test in order to convert from Chapter 13 bankruptcy to Chapter 7 bankruptcy. How to Convert Bankruptcy Types Some bankruptcy courts require you to file a motion to convert, while others have forms for this purpose, such as a “Notice of Conversion.” You will also pay a conversion fee. In most instances you need to file amended Schedules showing the reason you need to convert to Chapter 7, whether it be an increase in expenses or a decrease in income. You must also file a Statement of Intention setting forth your intent as to your secured debt such as your home or car. What Happens When You Convert from Chapter 13 to Chapter 7 The court typically grants your motion to convert automatically, without a hearing, as long as the above conditions are met and there are no objections from creditors or from the Trustee. You will stop making plan payments, and your case then proceeds as a Chapter 7. You will attend the  341(a) Meeting of Creditors, complete the Financial Management Course and do anything else that  the trustee asks.  Once the date for creditors to object to discharge has passed and no creditor filed an objection, the court enters a discharge order in your case and your case closes.  Bear in mind that at this point, the automatic stay is lifted and creditors who were not discharged can take action to collect. This means that if you did not reaffirm your secured debts and are not paying them, your lenders can repossess your car or take steps to foreclose on your home and evict you. When the Court May Force Your to Convert to Chapter 7 If a Chapter 13 debtor is habitually late or in default in making plan payments, the Trustee may move to convert the case to Chapter 7. However, if the debtor has enough income to make plan payments but is simply not making them, the Court may not allow a Chapter 7 conversion. If the Court finds that the debtor is acting in bad faith in refusing to make plan payments when they can afford to do so, the Court dismisses their case entirely. How a Bankruptcy Lawyer Helps You Convert Bankruptcy Types Choosing which type of bankruptcy to file and whether conversion is necessary requires knowledge of the legal and financial ramifications of each option. Let a top bankruptcy lawyer help you assess your situation and your goals and guide you in whichever process best helps you reach those goals.  The Philadelphia bankruptcy attorneys at The Law Offices of David M. Offen have helped thousands of clients get a fresh financial start. We can help you too. Call us today for your free consultation. The post Converting from Chapter 13 Bankruptcy to Chapter 7 appeared first on David M. Offen, Attorney at Law.

Imagine you’re walking down the street, following all laws and unspoken societal norms. Perhaps you just got out of work and you’re on...

 https://brownpoliticalreview.org/2021/12/driven-to-disaster-why-major-cities-must-abolish-the-paid-taxicab-medallion-system/

Debt Blue Debt Settlement or Bankruptcy: Which is Better?   Blog on Debt Blue Robert Paid them $23673.00 18 month Settled Chase $10,496 and Chase $9719 The post Debt Blue or Bankruptcy Which is Better? by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

Bankr. W.D.N.C.: In re VR King Construction- Reasonable Attorney Fees under N.C.G.S. § 6-21.6 and 11 U.S.C. § 506(b) Ed Boltz Mon, 12/13/2021 - 02:20 Summary: The bankruptcy court allowed Y2 Yoga to file a claim for post-petition attorneys fees pursuant to N.C.G.S. § 6-21.6(f). When that amount exceed the judgment amount upon which the claim was based, VR King objected that such was prohibted as the award of reasonable attorney’s fees may not exceed the amount in controversy. The bankruptcy court rejected this interpretation, as § 6-21.6 indicates that the amount in controversy does not equate to the judgment obtained by referencing both the “amount in controversy” and the “results obtained” as factors courts should consider in determining reasonable attorney’s fees and expenses. Further, the legislative history indicated that prior to 2015, this provision was limited by the phrase "may not exceed the monetary damages awarded" but that was removed. The Trustee also objected that, among other reasons, the total fees were unreasonable under § 6-21.6 , but this was dismissed as the Trustee did not address the specific factors of that statute, which include: (1) The amount in controversy and the results obtained,(2) The reasonableness of the time and labor expended, and the billing rates charged, by the attorneys, (3) The novelty and difficulty of the questions raised in the action, (4) The skill required to perform properly the legal services rendered, (5) The relative economic circumstances of the parties, (6) Settlement offers made prior to the institution of the action, (7) Offers of judgment pursuant to Rule 68 of the North Carolina Rules of Civil Procedure and whether judgment finally obtained was more favorable than such offers, (8) Whether a party unjustly exercised superior economic bargaining power in the conduct of the action, (9) The timing of settlement offers, (10) The amounts of settlement offers as compared to the verdict, (11) The extent to which the party seeking attorneys’ fees prevailed in the action, (12) The amount of attorneys’ fees awarded in similar cases, and (13) The terms of the business contract. The bankruptcy court did, however, then evaluate reasonableness under § 506(b), looking to the twelve Johnson factors, which are as follows:(1) the time and labor required in the case, (2) the novelty and difficulty of the questions presented, (3) the skill required to perform the necessary legal services, (4) the preclusion of other employment by the lawyer due to acceptance of the case, (5) the customary fee for similar work, (6) the contingency of a fee, (7) the time pressures imposed in the case, (8) the award involved and the results obtained, (9) the experience, reputation, and ability of the lawyer, (10) the “undesirability” of the case, (11) the nature and length of the professional relationship between the lawyer and the client, and (12) the fee awards made in similar cases. The bankruptcy court then, in the following 14 pages, reviewed all of these criteria (many of which are virtually identical) finding the attorneys' fees were reasonable. For a copy of the opinion, please see: In-re-VR-KingDownload Blog comments Blog tags attorneys' fees Category North Carolina Bankruptcy Cases Western District

Summary: Prior to filing bankruptcy, Ms. Butler filed a charge with the EEOC alleging that she was subjected to sexual harassment and then wrongfully terminated by Home Depot. A settlement was reached with required Home Depot to pay the total … Bankr. M.D.N.C.: In re Butler- Lost Wages from Sexual Harassment Claim Not Exempt Read More » The post Bankr. M.D.N.C.: In re Butler- Lost Wages from Sexual Harassment Claim Not Exempt appeared first on .

E.D.N.C.: Rouse v. Nutrien AG Solutions, Inc.- Liquidation Test for Hardship Discharge Based on Values at Confirmation Ed Boltz Mon, 12/13/2021 - 01:56 Summary: Mr. Rouse filed a Chapter 12 bankruptcy in November 2017, with a plan negotiated with his creditors, including Nutrien, being confirmed on May 23, 2017, with general unsecured creditors to receive $50,687. Then on June 27, 2020, Mr. Rouse was shot multiple times by an assailant who murdered two other people before killing himself. Due to his devastating injuries, Mr. Rouse spent more than a month hospitalized, required multiple surgeries and on-going physical therapy, all of which will prevent him from farming for the foreseeable future. Mr. Rouse, who had paid $43,465.64 to general unsecured creditors, then sought a hardship discharge pursuant to 11 U.S.C. § 1228(b) and Nutrien objected, arguing that Mr. Rouse was $7,221.36 short of meeting the liquidation test. Mr. Rouse urge a reanalysis of the liquidation test, taking into account the $18,000 paid to his attorneys. The bankruptcy court rejected this argument, as $10,000 in attorney's fees had already been incorporated into the liquidation test at confirmation, and denied the hardship discharge finding that Mr. Rouse owed $11,339.62 to general unsecured creditors, which included accrued interest. The district court affirmed, finding that "the statutory language recognizes the timing of the confirmation of a plan of reorganization, i.e., before the plan's effective date, versus a motion for discharge from that plan, i.e., after the plan's effective date." Accordingly, the liquidation test for both confirmation and hardship discharge look at the assets at the time of confirmation. Commentary: It is unclear from the Claims Registry how much of the $11,339.62 that Mr. Rouse owed would have been paid to Nutrien, but it hopefully is enough to justify opposing this hardship discharge for a victim of traumatic violence. That aside, this decision should help both Chapter 12 and Chapter 13 debtors with hardship discharges, as an increase in the value of assets during the case should likewise not be considered. For a copy of the opinion, please see: Rouse-v.-Nutien-AG-SolutionsDownload Blog comments Category Eastern District Federal Cases