Hands up, everyone who has encountered a claim that a debt is non-dischargeable by reason of §523(a)(14). That’s what I thought: nada, or next thing to it. Despite watching for it, I hadn’t seen one til this year when AmEx filed an adversary in a case in which I was peripherally involved. My copy of […] The post The Neglected Non-dischargeability Provision appeared first on Bankruptcy Mastery.

The Motley Fool has an article titled "Behind on Student Loan Payments? Here's How It Can Impact Your Credit Score". The article can be found at https://www.fool.com/student-loans/2023/06/25/behind-on-student-loan-payments-heres-how-it-can-i/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!

It is very difficult to escape debts, and wage garnishment is one way that courts make debtors pay up. Wage garnishments can be a significant financial burden and are not always fairly imposed. When wages are garnished in Pennsylvania, the courts require that a certain percentage of the debtor’s pay is withheld and given to creditors and other debt holders. If your wages are garnished, speak to an attorney to make sure the garnishment is fair and legal. If it is not, your lawyer can help you submit an appeal to the Pennsylvania Department of Revenue Board of Appeals. Remember, only certain debts warrant garnishment, and wages can only be garnished up to limited amounts. If an appeal is unsuccessful, you should discuss the possibility of filing for bankruptcy with an attorney. A bankruptcy petition would stop the garnishment and help you manage, pay, and discharge many of your debts. For a free case review about your wage garnishment situation, call our Pennsylvania bankruptcy lawyers at Young, Marr, Mallis & Associates at (215) 701-6519. What Happens When My Wages Are Garnished in Pennsylvania? Wage garnishment is never a pleasant experience. Often, it comes as a last resort when debtors cannot or will not pay back debts. When a person’s wages are garnished, the Pennsylvania Department of Revenue orders that a certain amount of money is withheld from their paycheck each pay period until the debt is fully paid. If your debts are significant, you might live with garnished paychecks for a long time. Wage garnishments are an administrative decision rather than a judicial one. This means that the Department of Revenue may impose the garnishment without needing a court order, although a court order might be involved. However, the Department is limited in how much of your wages they can garnish. The limits depend on the nature of your debts, but only a certain percentage may be garnished and no more. For example, if you have unpaid federal student loans, no more than 15% of your wages may be garnished. Garnishments usually do not go away until the debt in question is paid. However, you can take legal action to appeal a garnishment you believe is unfair, exceeds legal limits, or otherwise violates the law. Our Philadelphia bankruptcy attorneys can help you determine if you have any grounds to appeal the garnishing of your wages. Appealing a Wage Garnishment in Pennsylvania You and your attorney must submit a petition to the Pennsylvania Department of Revenue Board of Appeals to appeal the garnishing of your wages. Petitions may be filed online or through the mail. Your petition should explain why you are appealing, meaning why the garnishment is unlawful. You might have various grounds for appeal. For example, Pennsylvania is very restrictive about when wages can be garnished, and only very limited situations warrant the garnishing of earnings. According to 42 Pa.C.S. § 8127(a), wages may only be garnished for debts related to divorce, child or spousal support, board of 4 weeks or less, specific kinds of taxes, student loans, criminal restitution, and back rent on residential lease agreements. If your wages are being garnished for an entirely different reason, you might have grounds for appeal. You should submit any evidence you want to be considered with your appeal petition. While your appeal is pending, the garnishment will remain on your wages. Garnishments are only removed if the Department decides to end it, the debt is paid, or your appeal is successful. Even if you are actively disputing the garnishment, it will remain in effect, and you will continue to lose wages. Fighting a Wage Garnishment in Pennsylvania If your appeal is unsuccessful, you can talk to an attorney about other legal options. In many cases involving wage garnishment, the garnishment is only a Band-Aid solution, meaning there is a much larger financial problem that the garnishment alone cannot solve. One option is to file for bankruptcy. Contrary to popular belief, filing for bankruptcy is not a punishment nor a shameful process. Bankruptcy is a solution to serious financial problems, particularly severe debt. One critical component of the bankruptcy process is the automatic stay imposed by the courts. Once your bankruptcy petition is filed, the courts issue an automatic stay that prevents creditors from trying to collect on debts. This includes any wage garnishments. In short, a bankruptcy petition should put a stop to the garnishment of your wages, at least for the time being. You should consider filing for bankruptcy if you have significant debts you cannot pay for. Often in these situations, wage garnishments make the situation harder for petitioners. Talk to an attorney about your financial situation to see if you are eligible for bankruptcy. Can I Be Fired Over Wage Garnishments in Pennsylvania? When the Department of Revenue garnishes your wages, your employer must be notified of the situation. Usually, the Department orders an employer to withhold a certain percentage of someone’s pay and remit it to the Department. In some cases, employers might find the entire process more trouble than they are willing to deal with, and they might try to fire you. Rest assured, there are legal restrictions on termination when it comes to garnishments. Under federal law, your employer cannot terminate you over a single garnishment order. However, federal law does not protect you if you have multiple garnishment orders. Alternatively, you could quit your job to avoid the garnishment. While this is possible, there might be unforeseen consequences. If creditors or the Department of Revenue believe you are deliberately evading paying your debts, they might take more extreme legal action against you. Definitely speak to an attorney before leaving your job over a garnishment order. Call Our Pennsylvania Bankruptcy Attorneys if Your Wages are Garnished Call our Warminster, PA bankruptcy lawyers of Young, Marr, Mallis & Associates at (215) 701-6519 to set up an appointment for a free case valuation regarding your wage garnishment and bankruptcy petition.

The Bankruptcy Code’s “Automatic Stay”[3] is its “fundamental” protection.”[4] In summary, it enjoins efforts to prosecute claims against debtors or gain possession or control the bankruptcy estate’s[5] property.The Automatic Stay: a.) offers debtors “breathing room” during the period of financial

Equity security holders[2] or investors [3] (“Equity Holders”) in debtor entities are usually subordinated to creditors’ claims in bankruptcy cases.[4] This need not always be so.

For a system that is supposed to rehabilitate personal finances and set debtors back on their feet, Chapter 13 nationwide is schizophrenic about on- going retirement savings, divided about whether post petition contributions to retirement accounts preclude confirmation of a Chapter 13 plan. Are 401(k) Contributions Disposable Income Or Not? Too many courts, in my […] The post Are 401(k) Contributions Disposable Income Or Not? appeared first on Bankruptcy Mastery.

How to File Bankruptcy for Credit Card DebtInvestor Times has a helpful article about how to file bankruptcy to discharge credit card debt.  The article can be found at  https://investortimes.com/how-to-file-bankruptcy-for-credit-card-debt/Jim Shenwick, Esq  917 363 3391  [email protected] click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

Filing for bankruptcy tends to sound like an intimidating and shameful process. In reality, bankruptcy petitioners are often surprised to find how simple and even easy the process can be under the right conditions. While filing for bankruptcy has its fair share of legal hurdles, bankruptcy hearings are often pretty tame. In many cases, petitioners only have to attend a select few hearings. These hearings might not be very complicated depending on which bankruptcy chapter you file under and whether any creditors dispute your petition. However, these hearings might be quite important and contentious if serious disputes arise. One of the most important hearings is actually more of a meeting. The 341 meeting with creditors might set the pace and tone of your case. Other hearings might include status, confirmation, and trustee hearings. Again, these hearings can be smooth and uneventful depending on how you file and whether there are many major disputes. Ideally, bankruptcy hearings should be quick. If your case is not properly prepared or creditors raise significant concerns, the process can be more time-consuming. Schedule a review of your financial situation with our bankruptcy attorneys for no charge by calling Young, Marr, Mallis & Associates at (215) 701-6519. Do I Have to Go to Court for a Bankruptcy Hearing? Before asking what goes on at bankruptcy hearings, you should figure out whether you even need to be present at a bankruptcy hearing. The first thing to know is that the bankruptcy process involves multiple hearings, not just one. There might be hearings to determine the status of your case, to work out disputes with creditors, and to finalize certain aspects of your petition, among others. Petitioners are often not required at bankruptcy hearings, especially when the issues being heard pertain to procedural rules and details. Our bankruptcy lawyers are prepared to represent you at hearings in your absence. If you are needed at a certain hearing, your attorney should tell you. You should also receive advanced notice from the courts about the time and place of the hearing. Most bankruptcy issues are worked out outside of court. Your petition and payment arrangements with creditors are often arranged well in advance of being finalized in court. Court hearings are, more often than not, formalities. If everything is in order before you get to court, the hearing should be smooth and quick. Hearings only become more serious matters if there are major disputes in your case. For example, if creditors believe your bankruptcy claims are fraudulent, a court hearing might be required to settle the issue. Attending a 341 Meeting with Creditors The 341 meeting with creditors is where any major disputes might be raised, if any. The name of this meeting comes from the bankruptcy code section that requires the meeting. At this meeting, you, your attorney, and creditors to whom you owe debts may meet and discuss your situation. What happens at this meeting often forms the basis of other hearings and sets the tone for the remainder of your case. As such, it is important to work with an experienced attorney. At the meeting, you should have documentation of your finances prepared for review. Creditors will also be given the opportunity to raise concerns over the debts they are owed. Often, creditors do not even attend these meetings. If no major issues are raised, your case may quickly move forward. At this meeting, you might have to prove you qualify for bankruptcy. This often involves passing a means test. The means test measures your ability to pay your debts. If you earn too much money compared to your debts, you might be ineligible for bankruptcy. Your competency to follow through with the bankruptcy plans (e.g., liquidation, payment plans) may be evaluated. Other Bankruptcy Hearings and Proceedings There might be numerous hearings involved in the bankruptcy process. For example, quick status hearings might be arranged to determine whether your petition is ready to move on to the next stage. If it is, your case moves forward, and dates for future hearings might be scheduled. If not, you might be given a deadline by which you should be ready. Often, petitioners are not required at status hearings. Confirmation hearings are common in Chapter 13 bankruptcy cases. These hearings are meant to confirm and finalize payment plans devised by petitioners. As long as payment plans are feasible and are not objected to by creditors, confirmation hearings should be fairly simple. Trustee hearings are also held in many Chapter 13 cases. In such cases, a trustee is placed in charge of the case and makes sure petitioners adhere to the appropriate bankruptcy laws and procedures. If there are issues, your trustee might call a hearing. For example, if you have not submitted your proposed payment plan by the deadline, your trustee might arrange a hearing to find out why. If you cannot provide a valid reason for the delay, the trustee might file a motion to dismiss your petition. How Long Are Bankruptcy Hearings? The time it takes to get through bankruptcy hearings varies from case to case. Ideally, many hearings should be quick with little fanfare. If issues or disputes arise, hearings might be more involved and take longer. For example, a 341 meeting with creditors might be fairly quick if no creditors object to your petition. However, if creditors raise concerns over the debts they are owed, this heating might take a while. On top of that, the duration of hearings is often based on how prepared you and your Philadelphia bankruptcy attorney are. For example, suppose you do not have any information about your debts, income, assets, or other important financial details ready before an important hearing. In that case, the hearing will likely be postponed, and your case may take longer to complete. Our team can help you get all necessary forms, paperwork, and information prepared well in advance of all your bankruptcy hearings. Contact Our Bankruptcy Lawyers for Support with your Hearings and Proceedings Arrange for an evaluation of your financial predicament with our bankruptcy lawyers at no cost to you by calling Young, Marr, Mallis & Associates at (215) 701-6519.

Filing for bankruptcy is nobody’s idea of a good time, but it is often a necessary solution to serious debt problems. Chapter 13 bankruptcy is one potential option, and the timeline for filing might vary based on your circumstances. Chapter 13 bankruptcy is a good fit for those with a steady income. You should meet with an attorney and discuss your situation in depth, which might take days, weeks, or longer, depending on your financial situation. The actual signing and filing of your case are relatively fast, usually taking only about a day. Getting a payment plan approved might also take time, depending on whether creditors disagree with our proposed plan. It would be best if you began making payments on your debt payment plan within 30 days of filing your case, and your plan should be final and confirmed within 60 days. Completing the process is also time-consuming, as it takes several months to get a final report from the trustee. Overall, the Chapter 13 bankruptcy process may take 3 to 5 years or more. Schedule an initial case evaluation for no charge with our Pennsylvania bankruptcy lawyers at Young, Marr, Mallis & Associates by calling (215) 701-6519. Who Can File for Chapter 13 Bankruptcy in Pennsylvania? If you are experiencing severe financial troubles and debt, you should speak to our Pennsylvania bankruptcy attorneys about possibly filing for bankruptcy. People tend to think of bankruptcy as something to be ashamed of or a punishment for making financial mistakes. The truth is that bankruptcy is intended to be a solution to debt problems, not a punishment. Chapter 13 bankruptcy is one such option available to many people, although it tends to be a better fit for those with a steady income. Chapter 13 Bankruptcy Debt Limits The great thing about Chapter 13 bankruptcy is that anyone might be eligible. You can file under Chapter 13 whether you are an individual, self-employed, or even operating an unincorporated business. However, restrictions exist on how much debt you can have to be eligible. You may not file for bankruptcy under Chapter 13 if your combined secured and unsecured debts are $2,750,000 or more. To be eligible, your debt must be less than this sum. For many, this is a very high limit that does not pose a problem to their case. However, particularly high earners might be very close to this limit. It might be difficult to determine where your debts fall in relation to this limit. Many people have unfortunately lost track of some of their debts and need help accounting for everything. Even if you are unsure whether you are eligible to file under Chapter 13, you should still meet with an attorney to discuss your situation. What if I Do Not Qualify for Chapter 13 Bankruptcy? If your debts are too great or you do not meet various other eligibility requirements for Chapter 13 bankruptcy, do not despair. There are multiple bankruptcy chapters to choose from, each designed for different kinds of people in different financial situations. Talk to your attorney about which chapter fits your needs the best. Some possible bankruptcy options other than Chapter 13 are Chapter 7 and 11. Chapter 7 is a popular option among individuals filing for bankruptcy, while Chapter 11 is geared more toward business entities. Under Chapter 7, a person may liquidate various assets and properties to help pay debts. For example, if you own vehicles, a home, and other properties or have financial assets, they may be sold off. While losing assets and property is not ideal, the trade-off is that Chapter 7 bankruptcy may be completed relatively quickly. In many cases, petitioners have their assets liquidated and their debts paid or discharged within a few months. Chapter 11 is very similar to Chapter 13 in that they both focus on reorganizing debts rather than liquidating assets. Petitioners filing for Chapter 11 bankruptcy may remain in possession of their business and continue operations as normal while reorganizing and paying debts over time. This might be a good fit if you need to file bankruptcy for a business rather than yourself. Pre-Filing for Chapter 13 Bankruptcy in Pennsylvania You do not simply decide to file for bankruptcy, go down to court, and file your claim. Our Philadelphia bankruptcy lawyers put a lot of work and preparation into your case before it is filed. Bankruptcy cases are often fraught with legal and financial complications, and you should work with an experienced lawyer on your case. How much time is spent during this “pre-filing” stage may vary based on your circumstances. One of the most important aspects of your case you and your lawyer need to nail down before filing for bankruptcy is determining the extent of your debts. People filing for bankruptcy often have numerous, significant debts. Some debts are secured, while others are unsecured. Debts might be a mix of large sums (e.g., student loans, mortgages, medical bills) and smaller debts (e.g., credit cards, utilities, late fees). Your eligibility for Chapter 13 bankruptcy might be in jeopardy if your debts exceed the limit mentioned above, which is why you, your attorney, and possibly a financial advisor should meet and take a full accounting of your debts and assets. Depending on your situation, this might be quick or very time-consuming. You should also consult a Chapter 13 bankruptcy lawyer to determine if bankruptcy is the right option. You might find that after accounting for all your debts and assets, you have enough assets to cover many of your debts, and bankruptcy might not be necessary. Alternatively, you might find you have no significant assets, and bankruptcy is your only way out. The more complicated your finances are, the longer it might take to sort out your case before you file. Chapter 13 Bankruptcy Signing and Filing in Pennsylvania Once your case has been sufficiently prepared, you and your attorney may file your petition with the court. While people often focus on the actual filing of the lawsuit, this process does not take up much time. Generally, the filing process may be completed in as little as a day. Even so, this process does have a few important steps you should take with your attorney. Certifying and Signing That the Documents Are Accurate After preparing your case, you and your lawyer must review everything and verify that all paperwork, forms, and everything else is in proper order. Certifying your documents is crucial because it can be surprisingly easy to miss small mistakes that come with huge consequences. For example, you might mistakenly leave out information about certain debts or assets. To you, this might be a minor oversight and easily fixable. To the court, this might seem like you are trying to hide important financial information. It is not unheard of for desperate people to try to hide assets from courts during the bankruptcy process, and it never goes over well. Fixing such a mistake might also mean trying to get back into the court’s good graces. File with Bankruptcy Court Filing your case sounds fairly simple. In many cases, the act of filing involves simply dropping off and stamping paperwork with the court clerk. While this seems like a no-brainer, it is a critical step that must be handled carefully. First, you need to make sure you are filing your claims in the right court. You cannot walk into just any courthouse and file for bankruptcy. Since bankruptcy is a federal issue, ordinary state courts have no jurisdiction. You need to make sure your case is filed in bankruptcy court. Your lawyer should know where the court is and how to submit your case. Automatic Stay Goes into Effect Another important part of the filing process is the automatic stay that immediately goes into effect. The automatic stay is implemented to stop creditors from trying to collect on your debts while your bankruptcy petition is pending. Although this is temporary, it is often a huge relief to people being hassled by creditors. Part of the automatic stay means that creditors must cease demanding payment, at least for the time being. If credit card companies, banks, or bill collectors are still trying to contact you, tell your attorney immediately. Another aspect of the automatic stay is that creditors cannot take adverse action against you. If creditors threaten to repossess property, sue you for unpaid debts, or foreclose on your home, they must refrain from doing so until your bankruptcy case is complete. By that time, your debts might be cleared or discharged. Submitting Chapter 13 Bankruptcy Documents to a Trustee Once your documents are filed, they must be submitted to the bankruptcy trustee. The trustee is the person the government appoints to represent your estate in bankruptcy proceedings. Trustees are often in charge of assessing your debts and assets and recommending what to do next. It may take up to 21 days before the trustee has the bankruptcy documents from your filing. Once the trustee has your documents, they can begin working on your case and with creditors to help discharge and eliminate your debts. If more than 21 days have passed since you filed your case and you have not heard from a bankruptcy trustee, talk to your lawyer immediately. Chapter 13 Debtor Starts Making Payments Under Chapter 13, bankruptcy petitioners reorganize their debts and develop payment plans to help reduce them over time. While it might take a while before your case is finalized, you should begin making payments on your payment plan no later than 30 days after you submit your case to the court. The plan might be altered later, but you should make payments sooner rather than later. Creditor Meetings Before your case is finalized, your bankruptcy trustee may have several creditor meetings where they meet with creditors’ representatives to review your potential payment plan. Since creditors have a fairly significant stake in your bankruptcy case, they can weigh in on your tentative payment plan. These meetings often happen about 30 days after you submit your case. Plan Objections As mentioned, creditors who hold your debts may weigh in on your case. Since they have an interest in getting the money they are owed, they may accept or reject your payment plan. Sometimes, creditors might vote on whether to accept a proposed payment plan. Other times, they might voice objections, and we can work with them to make sure everyone is happy. Plan Confirmation Once your payment plan has been discussed and debated with your creditors, it must be approved. Your plan should be approved no less than 60 days after it is submitted if there are no objections. If there are objections, we might have to go back and forth with creditors longer. Chapter 13 Bankruptcy Plan Duration Overall, the time it takes to plan, submit, and discuss your payment plan may take between 36 and 60 months. You should be working to keep up with payments even if your plan still needs to be finalized. The plan may be modified, and your attorney can help you prepare for various possibilities and eventualities. People with higher debts that creditors do not want to let go of might spend more time trying to get the plan finalized. Completion of Pennsylvania Chapter 13 Bankruptcy Plan Once your payment plan has been fulfilled and completed, we need to formally complete your case so you can finally move on. The trustee should issue a final report regarding the completion of your payment plan. The report might take time to assemble, and you might have to wait a few weeks to a few months, depending on the situation. Once the court has the final report, it might discharge certain debts. Often, courts are willing to discharge certain debts if petitioners have faithfully adhered to the payment plan, made timely payments, and creditors have approved the plan and potential discharge. The final decree and closing often occur within about 2 weeks of the last discharge. How Long Does the Chapter 13 Bankruptcy Process Take to Complete in Pennsylvania? The entire bankruptcy process for those filing under Chapter 13 takes about 3 to 5 years in many cases. However, if your case presents certain complications, it might take longer. For example, if creditors are uncooperative and refuse to approve a payment plan, we might spend more time working out that issue before your case can move forward. Although spending several years working on a bankruptcy case might seem daunting, remember that the outcome is in your best interest. Once your case is over, your remaining debts should be under control while others are discharged. The biggest advantage of Chapter 13 is that petitioners often do not have to liquidate assets, so they can keep their homes, vehicles, and other properties. Contact Our Pennsylvania Bankruptcy Attorneys for Assistance with Your Case Schedule a confidential case review for no cost with our Bucks County, PA bankruptcy attorneys at Young, Marr, Mallis & Associates by calling (215) 701-6519.

Imagine getting stuck in a financial storm. Debt is swirling around you, creditors are knocking at your door, and it feels like there’s no way out. Then, you catch a glimmer of something in the distance. Could it be a lifeline? You’ve heard of Chapter 7 Bankruptcy, but is it the right choice for your+ Click Here For Read More The post How To Navigate Chapter 7 Bankruptcy in Chicago appeared first on David M. Siegel.