Before you can file for bankruptcy in Pennsylvania, there a few things you must do. So, will your pre-bankruptcy checklist include completing debt relief? Completing debt relief is not mandatory before an individual can enter into bankruptcy in Pennsylvania. Debtors do have to complete credit counseling courses, which provide guidance on money management and budgeting, among other financial matters. Debt relief programs are handled by companies whose primary concern it is to lower the debt you owe in exchange for a fee. These programs are not guaranteed to be successful, nor do creditors have to negotiate with debt relief companies. Compared to bankruptcy, debt relief is not necessarily a reliable way to fully address your outstanding debt in Pennsylvania. To have the Pennsylvania bankruptcy lawyers of Young, Marr, Mallis & Associates assess your case for free, call our team today at (215) 701-6519. Do I Need to Complete Debt Relief Before Filing My Bankruptcy Case in Pennsylvania? Debtors do not have to work with debt relief companies before filing Chapter 7 or Chapter 13 in Pennsylvania. That said, debtors do have to complete a credit counseling course in order to be able to declare bankruptcy. Debt relief programs and credit counseling courses are different things. Debt relief companies will negotiate with creditors on behalf of a debtor in an attempt to reorganize debt or lower the amount a debtor owes. This is not the same as enlisting our Philadelphia bankruptcy lawyers to negotiate with your creditors to avoid bankruptcy. Working with debt relief companies is somewhat risky, depending on the size and category of debt an individual has. Completing credit counseling before bankruptcy is mandatory, however. In Pennsylvania, debtors must complete credit counseling within 180 days of filing a bankruptcy petition. If you do not complete credit counseling before filing, your case will likely be dismissed. In rare situations, debtors might be permitted to complete credit counseling while in bankruptcy. Credit counseling courses will provide debtors with advice and assistance regarding how to handle their finances properly. These courses generally cover subjects like budgeting and money management. Taking credit counseling courses is not the same as working with debt relief companies. Credit counseling will help you after you exit bankruptcy, as you will be better equipped to handle your finances once your debt has been addressed. Should I Complete Debt Relief Before Filing for Bankruptcy in Pennsylvania? Although completing debt relief is not mandatory before entering bankruptcy in Pennsylvania, it is an option. But is it a good one? When considering the possible outcomes debt relief can lead to, it is also important to consider the negative ones. Debt relief companies typically charge high fees, which debtors might not be able to pay, causing them to fall further into debt. Furthermore, some creditors might not want to work with debt relief companies, whereas they might be more likely to negotiate with our attorneys. Because debt relief companies simply aim to lower the debt you owe, they might not be concerned with safeguarding your credit score or protecting your assets. Suppose you are interested in debt consolidation to avoid bankruptcy or believe some of your creditors might be open to negotiations. In that case, it is best to work with our lawyers instead of a company that offers debt relief services. Our attorneys can identify errors on a creditor’s behalf, such as predatory lending practices or other inappropriate behaviors, that might ultimately help your case. Furthermore, our attorneys can negotiate a debt consolidation plan that more accurately meets your needs and is financially practical so that you can complete your repayment plan and avoid further financial distress. Comparing Debt Relief and Bankruptcy in Pennsylvania Like credit counseling and debt relief, debt relief and bankruptcy are two separate things. Bankruptcy is a legal process individuals can use to address debt that happens through the courts in Pennsylvania. Debt relief is a service companies provide and is not guaranteed to help you repay your debts. Addressing Debt When comparing debt relief programs and bankruptcy, bankruptcy is generally the surest way for debtors to begin rebuilding their financial stability. When working with debt relief companies, there is no way to for debtors to know if their efforts will be successful. Instead, individuals might incur expensive fees from debt relief companies and still have all their debt to repay. Bankruptcy, on the other hand, can allow you to tackle your debt in full. The way in which your debt will be repaid will depend on the bankruptcy chapter you file in Pennsylvania. Automatic Stay When you file a bankruptcy petition, an automatic stay will take effect. This puts a stop to any debt collection activities from creditors, including upcoming mortgage foreclosures, sheriff’s sales, and wage garnishments. An automatic stay is not afforded to debtors when they engage in debt relief programs in Pennsylvania. Debt Discharge Furthermore, in bankruptcy, some of your debts might be erased. Popular debts, like credit card and medical debt, are dischargeable in bankruptcy, meaning you will have no responsibility to repay them. While debt relief companies might negotiate a lower payment on your behalf, they cannot discharge debts in the same way that bankruptcy can. Protection of Assets Among its other benefits for debtors in Pennsylvania, bankruptcy also allows you to protect your assets from liquidation or repossession. Our attorneys can help you use federal or state exemptions when you file Chapter 7 so that you do not lose your home or car to creditors. If you file Chapter 13, your debt will be consolidated under the same interest rate, and you will make payments toward your debt according to your income and expenses. Call Our Lawyers About Your Pennsylvania Bankruptcy Case Call our Bucks County bankruptcy lawyers at (215) 701-6519 to schedule a free analysis of your case from Young, Marr, Mallis & Associates.

A “wage garnishment” order is a court order that allows creditors to take money directly out of your income to pay off debts you have to them. For many people, a wage garnishment can be a difficult arrangement. Garnished wages can make it tough to manage monthly expenses or participate in activities you enjoy. If you have garnished wages in New Jersey, you may be wondering whether your job or employer will be able to find out that your wages are being cut into to pay off creditors. Employers will always know that your wages are being garnished. This is because the portion of your pay that is used to pay off creditors is taken directly from your paycheck before you ever get it. Therefore, your employer knows that you have a garnishment because they need to know how much to take out of your pay to transfer to your creditors. If you need legal assistance, call our New Jersey bankruptcy lawyers from Young, Marr, Mallis & Associates at (609) 755-3115. Do New Jersey Employers Know About Wage Garnishment? Your employer will always know that your wages are garnished in New Jersey. However, this will not necessarily put your job in jeopardy. Making sure that wage garnishments are complied with can be demanding and frustrating for employers. The natural inclination, then, is to let go of the employee with garnished wages. Because of this, there are Federal laws that prohibit employers from firing people because they have garnished wages. 15 U.S.C. § 1674 prevents employers from laying off employees for “any one” indebtedness. So, it is undisputed that if you have one wage garnishment, you will not be able to be fired. However, if you have multiple garnishments from multiple creditors, the situation may be more complicated and should be examined by our New Jersey wage garnishment lawyers. How Do Wage Garnishments Work in New Jersey? Wage garnishments are when the court orders a portion of your paycheck to be directly paid to creditors to satisfy debts. To get a wage garnishment against you, creditors first have to go to court. What happens is that the creditor files a complaint with the court alleging that you owe them money and have not paid them. In order to have a garnishment put in place, the creditor needs a “money judgment” from the court, which is essentially the judge stating that the creditors are allowed to take your money (in ways that the law allows, of course). A creditor can get a money judgment for a number of reasons. The two main reasons are that you did not show up to court to contest the complaint or lost at trial. Now, if creditors had their way, they would probably try to take as much money as possible out of every paycheck you were supposed to get. However, New Jersey wage garnishment laws prevent creditors from taking above a certain percentage of your income. 15 U.S.C. § 1673 prevents any wage garnishment from exceeding 25% of that week’s disposable earnings. Your “disposable earnings” are what is left after your employer has removed what needs to be paid in taxes and some other fees. While 25% of a week’s earnings is a high amount, there are some other restrictions on what creditors can take out of your pay. Creditors cannot garnish your wages to such an extent that you are not able to pay for basic necessities like food or rent. Additionally, some forms of income, like military payments, cannot be garnished. How to Prevent Wage Garnishment in New Jersey If you are concerned about the effects of garnished wages, there are several ways that you can mitigate the effects of wage garnishment or prevent garnishment entirely. When you meet with our lawyers, we can determine which method is best for your particular situation. File for Bankruptcy One way to very quickly prevent wage garnishment from happening is to file for bankruptcy under the chapter that is most appropriate for your situation. When you file for bankruptcy, something called an “automatic stay” is immediately put in place that prevents creditors from taking money or assets from you. The idea behind automatic stays is to let debtors take a breather and have debts paid off in a way that is fair to both debtor and creditor. Bankruptcy has different chapters that work differently and will benefit people in different situations. For example, Chapter 7 bankruptcy is designed to pay off creditors as quickly as possible. The trade-off is that very few assets can be protected and made off-limits from creditors under Chapter 7. Therefore, Chapter 7 bankruptcy is tailored to people who do not have many assets. Chapter 13 bankruptcy, on the other hand, lets debtors earmark certain things as protected from liquidation. However, Chapter 13 bankruptcy takes significantly longer to resolve itself than Chapter 7. It is important to consider your situation and weigh the benefits and drawbacks of filing for bankruptcy when considering that option. Pay Debts The most obvious, but also realistically the most difficult, way to prevent or stop wage garnishment is to pay the debt. If creditors are not owed anything, they cannot take your income. That being said, the reality is that people facing wage garnishment may not be able to pay a debt right away, so it is not incredibly likely that this is a practical option. It is, however, an option nonetheless. Talk With Our New Jersey Wage Garnishment Lawyers Today Our Ocean County, NJ bankruptcy lawyers are ready to give free case reviews when you call Young, Marr, Mallis & Associates at (609) 755-3115.

The prospect of foreclosure is worrying to home and business owners across the United States. If a home or business owner is worried about a foreclosure on their property, they may be wondering how long they have to try and either remedy the situation or prepare to fight against foreclosure proceedings. Fortunately, there is a built-in time period before foreclosure called “pre-foreclosure,” where property owners can try and fix things or prepare for foreclosure proceedings. In Pennsylvania, “pre-foreclosure” refers to all of the processes that need to take place before a property is officially in foreclosure. Lenders/creditors cannot initiate foreclosure proceedings right away. They need to give you time to try and get things in order before trying to foreclose on your property. If problems have not been resolved by the end of the pre-foreclosure period, then the lender can foreclose on your property. To get a free case review from our Pennsylvania foreclosure lawyers, call Young, Marr, Mallis & Associates at (215) 701-6519. Explaining Pre-Foreclosure in Pennsylvania Pre-foreclosure refers to the time period after you are behind on mortgage payments but before foreclosure has officially started. Pre-foreclosure gives homeowners the opportunity to try and work things out with their lender before they officially foreclose on the debtor’s property. It may be a good idea to contact your lender to try and work out a deal to avoid foreclosure. There are several ways to do this with varying side effects that may or may not be acceptable to you for your situation. Our Philadelphia foreclosure lawyers can help you try and work something out with your lender or, if they do not want to cooperate, help you through the foreclosure process. How Long Does Pre-Foreclosure Last in Pennsylvania? If allowed, creditors with unpaid dues would foreclose on a house immediately. However, federal regulations do not let them. 12 C.F.R. §1024.41(f)(i) prevents creditors from initiating foreclosure unless a mortgage payment is more than 120 days overdue. It is within this timeframe that pre-foreclosure takes place. What Happens During Pre-Foreclosure? There are some steps and procedures that lenders need to go through during pre-foreclosure. Lenders cannot immediately start filing the foreclosure paperwork until some time has passed. Additionally, they must try to work something out with you where you can pay the debt in a reasonable fashion. Finally, you also have options that can reduce the likelihood of foreclosure or stop the process entirely. It is important to weigh the costs and benefits of those options with our lawyers since while they all can effectively stop a foreclosure from happening, some of them may have consequences that can be undesirable if you do not know them beforehand. Contact about Missed Payments Before initiating foreclosure proceedings, creditors must try to contact you and work with you to try and come up with a plan to remedy the situation. A creditor or lender must try and contact you within 36 days of a missed mortgage payment to discuss “mitigation options.” These are steps that you and your lender can take to try and “cure” the missed payments and avoid foreclosure. Some common options that may be discussed during these conversations are a loan modification, a short sale, or a deed in lieu of foreclosure. Modification A loan modification is a written document that permanently changes the original terms of a mortgage or other loan document. Generally, a modification will lower interest and monthly payments but increase the duration of the loan. You will have to provide certain documentation to your lender if you want to get a loan modification, and they may not agree to it. This can be complicated, but our lawyers can help you with this situation. Short Sale A “short sale” is when a property owner sells that property for less than what is left in mortgage debt. The bank/lender accepts the proceeds of the sale as payment for any outstanding debts, and there are no liens on the property. Although a short sale is something you can do to avoid foreclosure, it is a drastic option, and you should carefully consider your situation before committing to a short sale. Deed in Lieu of Foreclosure Another thing that can happen in pre-foreclosure to prevent foreclosure is a “deed in lieu of foreclosure.” This is a transaction where the homeowner voluntarily gives ownership of their mortgaged property to the bank/lender in exchange for wiping out any indebtedness. This is similar to a short sale. However, in a short sale, you need to work through selling your property. In a deed in lieu, that is the bank’s concern since they have the property now. Again, this is a decision with serious consequences to things like credit scores, but it is an option on the table during pre-foreclosure to fix the situation. File for Bankruptcy During the pre-foreclosure period, you may also consider filing for bankruptcy. While filing for bankruptcy may feel like you are giving up, that is hardly the case. Bankruptcy can act as a reset button to start over afterward free of debts or monetary obligations. When you file for bankruptcy, the court puts something in place called an “automatic stay,” which prevents creditors from taking any action whatsoever to collect debts from you. This includes threatening and initiating foreclosure proceedings. During bankruptcy, the court puts together a plan for you to sell assets and pay off debts. When bankruptcy ends, you come out the other side with a “clean slate.” Depending on the chapter of bankruptcy you file under, you may be able to exempt the property being foreclosed on from liquidation. Call Our Pennsylvania Foreclosure Lawyers Today Our Upper Darby foreclosure lawyers from Young, Marr, Mallis & Associates can review your case for free when you call us at (215) 701-6519.

10 Helpful Tips for Getting Business Loans After BankruptcySmallBizTrends features an informative article on securing a business loan post-bankruptcy. From our experience, individuals often become more creditworthy after filing for bankruptcy, because their personal balance sheet is improved (liabilities are discharged). and  one can only file for Chapter 7 Bankruptcy once every 8 years. The article is accessible at https://smallbiztrends.com/2023/09/loans-after-bankruptcy.html. Businesses or individuals overwhelmed with debt should reach out to Jim Shenwick, Esq. You can contact him at 917 363 3391 or [email protected]. To schedule a telephone call, please click the following link: https://calendly.com/james-shenwick/15min. We assist individuals and businesses struggling with excessive debt!

 What Do the Most Recent Bankruptcy Filing Statics Mean? JD Supra has an interesting article discussing the recent upswing in bankruptcy filings and what the data means.The article can be found at  https://www.jdsupra.com/legalnews/a-look-into-2023-what-do-the-bankruptcy-4316229/Jim Shenwick, Esq  917 363 3391  [email protected] Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

Homeowners at risk of foreclosure or tenants behind on rent may find that a ‘cash for keys’ agreement is the most viable solution. Banks and property owners might be willing to offer compensation to occupants in return for an easy transition of the property. If you are facing a situation where you are either a homeowner whose home has been foreclosed or a tenant whose landlord is seeking new tenants, a cash for keys agreement could be the best solution for you. In order to avoid costly and time-consuming evictions, banks and landlords may offer to pay you to regain possession of their property. However, it is highly recommended that you seek legal advice before entering into any agreements with the bank to ensure that your rights are protected. Our Pennsylvania cash for keys attorneys at Young, Marr, Mallis & Deane are here to provide you with a free review of your case by calling us today at (215) 701-6519. Can a Bank Offer “Cash for Keys” During Foreclosure Proceedings in Pennsylvania? Facing mortgage foreclosure or tenants behind in rent, homeowners or renters may find themselves in a difficult situation. However, there is an alternative option that could be beneficial for both parties involved: a “cash for keys” agreement. In these agreements, mortgage lenders and rental property owners offer to pay owners or tenants to ensure a smooth transition and timely move-out. These agreements are often a cheaper and quicker option than a costly eviction proceeding. A cash for keys agreement is essentially a buyout. After a bank has foreclosed on a property and wants the residents gone, they might offer to buy them out. Landlords can use the same type of agreement to entice bad tenants to move. In both cases, the owner is essentially paying a sum of money for them to leave. Depending on the circumstances, it may be significantly more efficient than pursuing time-consuming and expensive legal proceedings to evict the person from the home. Fortunately, these agreements are legal in Pennsylvania. However, it is best to speak with our experienced Pennsylvania cash for keys attorneys before dealing with the bank. Your agreement should be made in writing, with clear terms, and signed by both parties. Any agreement should definitively state the payment amount and the date the resident needs to move out. The agreement might include other terms, such as requiring the property to be kept in good condition. A former homeowner or tenant can then rely on the written agreement to provide clarity and some financial assistance. What is the Process for a “Cash for Keys” Agreement in Pennsylvania? When a property owner is facing foreclosure, they might consider a cash for keys agreement. This agreement sets out the terms for vacating the property in exchange for a negotiated payment. The agreement will specify a date for transferring possession and require the resident to leave the property in broom-clean condition, with all possessions and trash removed. The owner will also need to waive any claim they might have on the property or any right of redemption at the end of foreclosure. If a homeowner has lost their property through foreclosure, they may still have a right to redeem the property by paying the delinquent amount and retaking ownership. Depending on state and local eviction laws, they may also be able to remain in the property for up to six months. However, a cash for keys agreement is a viable option for those who choose to walk away from the property, without hurting their credit, unlike an eviction. Cash for keys agreements may be either negotiated or offered as standard terms by institutional lenders. The details and availability of such agreements may vary. Therefore, it is always best to contact your lender to discuss your situation and explore all available options. However, it is important to remember that both tenants and homeowners have rights and protections and should fully consider their situation before signing any agreement that involves walking away from their home. When to Consider a “Cash for Keys” Agreement in Pennsylvania If you are currently in the process of foreclosure or facing eviction, chances are you might have already received a notice for the same. However, this can be a good opportunity for you to take advantage of a cash for keys agreement. While some mortgage lenders or banks may offer this program by default, it is important to note that the terms and availability may vary. Even if your lender or landlord has not yet introduced such a program, you can initiate a discussion and negotiate the terms of a cash for keys agreement. When discussing a cash for keys program, it is crucial to be clear about the benefits and details of the agreement. Showing your willingness to cooperate can be helpful during negotiation. It is important to understand that the lender or owner is primarily concerned with the long-term value of their property. Therefore, assuring them that the property will be kept in good, clean condition can help solidify the deal and increase your chances of receiving a favorable agreement. How Can a “Cash for Keys” Agreement in Pennsylvania Be Beneficial? In some situations, a homeowner who is in the process of foreclosure or eviction may find a cash for keys agreement to be advantageous. Each party involved in the agreement could potentially benefit from it in various ways. Homeowners in Foreclosure If someone is facing a difficult situation where they need to relocate, they may consider exchanging their keys for a cash incentive. This could provide them with the necessary funds to cover the expenses associated with moving, such as transportation, storage, and other relocation costs. Renters If a renter finds themselves struggling to pay their rent and facing a possible eviction, they may be able to negotiate a cash for keys agreement with their landlord. This would involve the landlord providing the tenant with a sum of money in exchange for the tenant voluntarily vacating the property. Such an agreement can help the tenant avoid being evicted, as well as assist with the costs associated with relocating to a more suitable living situation. However, before agreeing to such an arrangement, the tenant should make sure to explore all other options available to them under their lease. Lenders This process involves paying the homeowner who has fallen behind on mortgage payments to leave the property and give up possession of the property after a foreclosure. This helps to avoid lengthy and expensive eviction proceedings after the foreclosure has already been completed. Additionally, it ensures that the property will be properly cared for during the interim period. Landlords Agreeing to a cash for keys deal can help landlords avoid the time-consuming and expensive eviction process. Instead of going through the hassle of evicting a tenant, which could take a long time and cost the landlord thousands of dollars in attorney fees, a cash for keys agreement offers a quick solution for replacing delinquent tenants. Our Pennsylvania “Cash for Keys” Attorneys Can Help For a free case evaluation with our Pennsylvania cash for keys lawyers, contact Young, Marr, Mallis & Deane today at (215) 701-6519.

Chicago Booth Review has an article on Why Small Businesses Are More Reluctant to File for Chapter 11?The article can be found at https://www.chicagobooth.edu/review/why-small-businesses-are-more-reluctant-file-chapter-11Jim Shenwick, Esq  917 363 3391  [email protected] Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

 I Stopped Paying My Private Student Loans, and Somehow Got Luckyhttps://www.nytimes.com/2023/09/09/business/private-student-loans-debt-collection.html?smid=nytcore-android-shareJim Shenwick, Esq  917 363 3391  [email protected] Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

Foreclosure is not something any homeowner wants to go through, but it might be unavoidable. Many people find moving on from the foreclosure process difficult if they are hit with a deficiency judgment. A deficiency judgment is a court ruling holding someone liable for debts owed to a lender after that lender forecloses on that person’s property. The deficiency is whatever might be left of the initial loan that has not been paid back to the lender. Lenders have a limited time to pursue such a judgment and must do so through the courts. The value of the judgment may be based on multiple factors, including the property’s fair market value, which might not be set in stone. Deficiency judgments may be limited in certain ways. They are typically unsecured debts that can only be obtained with a court ruling, and the lender must convince a judge of the deficiency. An attorney can help you avoid or possibly reduce a deficiency judgment. For help before, during, and after foreclosure proceedings, contact our Pennsylvania bankruptcy attorneys at Young, Marr, Mallis & Associates to schedule a free case review by calling (215) 701-6519. What is a Deficiency Judgment in Pennsylvania? When a home or other real property is foreclosed upon, the creditor or lender, usually a bank, sells the property to recoup their losses. It is very common for lenders to sell the houses for less than what the initial loan was worth, leaving an unpaid balance. This unpaid balance is known as a deficiency balance. For example, suppose you took out a loan to buy a home for $300,000. Next, suppose the home went into foreclosure after you missed too many mortgage payments. Now, suppose you paid back the bank $75,000, and the bank sold the home for $200,000. This means only $275,000 of the loan has been repaid. There would be a deficiency balance of $25,000. In Pennsylvania, a deficiency balance may pose a problem. Lenders or creditors can take the case to court and get a deficiency judgment against you, making you liable to repay the balance. Unfortunately, most people who owe deficiency judgments are not in a financial position to repay the balance. Speak to an attorney about your case. There might be a way to avoid liability for the deficiency judgment or reduce it to something more manageable. In some cases, our Philadelphia bankruptcy attorneys might be able to convince the lender to waive the deficiency. When Pennsylvania Courts Can Issue a Deficiency Judgment Against You While a deficiency judgment may be a significant hurdle to overcome, lenders and creditors have a limited time to seek a deficiency judgment. According to 42 Pa.C.S. § 5522(b), a lender has only 6 months from the date the sheriff’s deed for the foreclosed property is executed to file a petition for a deficiency judgment. Put another way, once a property is sold at auction, otherwise known as a sheriff’s sale, the lender who foreclosed on the property in the first place must submit a petition to the courts seeking a deficiency judgment no more than 6 months later. While 6 months might sound like more than enough time for a lender to file a petition, it is a tighter turnaround than you might think. Pennsylvania is a judicial foreclosure state. All foreclosure proceedings, including deficiency judgments, must go through the courts. A lender cannot obtain a deficiency judgment if they do not sue you for one, and they only have 6 months to file the case. Some lenders choose not to pursue the judgment if the deficiency is small. In other cases, lenders might lose track of time and forget to file the claim. If you believe the lender might come after you in court for a deficiency judgment, contact an attorney immediately, even if no petitions have been filed yet. Limitations on Deficiency Judgments in Pennsylvania As mentioned, since Pennsylvania is a judicial foreclosure state, the lender or creditor must take formal legal action against you to get a deficiency judgment. This often means filing a lawsuit, taking the case before a judge, and getting the judge to issue the judgment. This can be time-consuming and might allow you time to speak to an attorney about what to do. Deficiency judgments are typically unsecured debts. This means the debt is not attached to some sort of security or collateral. If it were, it would be considered a secured debt, and you could lose the collateral. If your deficiency judgment is unsecured, you might not risk losing much. Pennsylvania does not allow lenders or creditors to garnish wages for unsecured debts. However, if you own other properties, the lender or creditor may put a lien on those properties. There are limitations on how deficiency judgments are calculated. Generally, deficiency judgments are heavily influenced by the house’s fair market value. Unfortunately, what is considered fair market value can be hard to pin down and may depend on various economic factors. As such, determining fair market value can be objective in some ways but subjective in others. The lender may try to claim the fair market value is very low, thus increasing the deficiency judgment. Our job, if necessary, is to convince the court that the property is worth more than the lender claims, thus hopefully reducing the deficiency judgment. How to Avoid a Deficiency Judgment in Pennsylvania There might be numerous ways in which to avoid a deficiency judgment. It would be best to talk to a lawyer about your situation immediately, as lenders or creditors might be planning to file a petition for a deficiency judgment as we speak. One method is to file for bankruptcy. The point of bankruptcy is to repay whatever debts you can and have certain remaining debts discharged. Multiple bankruptcy chapters might be helpful to your situation. Chapter 7 is a popular choice and helps people liquidate assets, repay debts, and discharge debt. If you have assets you are okay with liquidating, or perhaps you have few assets at all, this might be a good option. Since a deficiency judgment is an unsecured debt, it can be discharged by the court in a bankruptcy hearing. Speak to Our Pennsylvania Bankruptcy Lawyers if You Were Served with Deficiency Judgment Papers Get in touch with our Quakertown, PA bankruptcy lawyers at Young, Marr, Mallis & Associates to set up a free case assessment by calling (215) 701-6519.

The bankruptcy means test, designed to keep people out of bankruptcy, has a fatal weakness.  Like so much recently, it’s health care. Health care, in the future, to be paid before creditors get any money. It works because, in a logic that only Congress could employ, the means test deducts future expenses from past income. And, since […] The post The Weak Link In The Means Test appeared first on Bankruptcy Mastery.