Philadelphia Bankruptcy Lawyer Blog

Montgomery County Bankruptcy Attorney Notes Increased Subprime Lending

Thu, 19 Apr 2012 14:17:02 -0500

As a bankruptcy lawyer in Montgomery County, Pennsylvania, the issue of post-bankruptcy credit rebounding is important. Interestingly, some debtors who have successfully concluded their Chapter 7 bankruptcies by receiving the Notice of Discharge from the court are seeing an increase in post-discharge credit offers. This may be the case even despite a lack of income. The lending even includes offers for car loans as well as the typical unsecured credit card. The reason is two-fold.

Montgomery County Bankruptcy Lawyer Notes Fixed-Rate Mortgage Rate Rise

Wed, 28 Mar 2012 12:54:29 -0500

This Montgomery County bankruptcy attorney has learned that 30-year fixed mortgage rates have moved past the 4% mark for the first time since late October 2011. Fortunately, analysts believe this upswing in rates will not curtail the growing optimism building within the US housing market. Additionally, 4% itself is not a very high rate given that average rates since 1992 are about 6.5%.

Chester County Bankruptcy Lawyer Discusses Unemployment and Chapter 7

Thu, 15 Mar 2012 17:01:39 -0500

Less people sought unemployment benefits last week than in prior weeks, a sign of growing market strength -- at least on a national level. Unfortunately, Pennsylvania saw an increase in filings (up 2859) due to layoffs in food service, lodging, entertainment, healthcare, and science/technology services. By comparison, the greatest movers were New York, with an increase of 16,478, while Massachusetts was down 2974.

Montgomery County Bankruptcy Lawyer Discusses Filing A Bankruptcy Without an Attorney

Thu, 01 Mar 2012 12:42:37 -0500

Is it legal to represent yourself in a bankruptcy? Yes. There are only a few times in any legal matter where you must be represented by counsel (i.e., in death penalty cases). Is it wise to represent yourself in bankruptcy? That depends on whether you can effectively achieve the goals of the bankruptcy. In other words, if you can file your bankruptcy to the same net effect as a Montgomery County bankruptcy lawyer and the time spent doing it is not prohibitive for you, then doing so is, indeed, a viable option. Of course, filing a bankruptcy is not particularly easy for the uninitiated.

Philadelphia Bankruptcy Attorney Discusses Exemptions

Thu, 16 Feb 2012 15:20:45 -0500

One of the most common questions asked of Philadelphia Bankruptcy Attorneys is, "how much do I get to keep if I file for bankruptcy?" The answer, surprisingly, is very often "everything." While bankruptcy is a federal matter (like immigration cases or FCC violations) as opposed to a state issue (like a simple lawsuit before local Magisterial court), there is still a state element which creeps into a federal bankruptcy filing: exemptions. These are the items that are excluded from liquidation in a Chapter 7 bankruptcy (meaning you get to keep them).

Bucks County Bankruptcy: Student Loans Driving More To Bankruptcy

Thu, 09 Feb 2012 13:32:42 -0500

In 1999, Congress took steps to make it significantly more difficult to discharge student loans in bankruptcy. The Bankruptcy Reform Act of 1999 did not actually become law, nor did the 2001 iteration (the Bankruptcy Reform Act of 2001), but the law was included, in nearly identical language to that from the attempts in 1999 and 2001, in the 2005 overhaul known as the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA).

Norristown Bankruptcy Lawyer Discusses The Means Test

Fri, 27 Jan 2012 18:00:25 -0500

The Means Test is a way of making sure that a debtor who seeks a discharge through Chapter 7 bankruptcy is not "abusing the system." In fact, the law does use the term "abuse" in connection with the means test formulation. Consider that, as a general statement, it would be "unfair" for people who make a million dollars a year to file a bankruptcy and receive a quick discharge. To do so, using the language of the law, would mean that a "presumption of abuse" exists. To overcome this presumption, the Means Test is filled out to show that the debtor is, indeed, using the law as it was intended: non-abusively.

Montgomery County Bankruptcy Attorney on Savings and Retirement in Bankruptcy

Tue, 17 Jan 2012 16:54:11 -0500

In what might be deemed an ominous trend, Americans seem to be taking on additional debt (most likely as credit card debt) to pay for the expenses of daily living. This approach to money management, while not ideal, can be appropriate in the short term or in individualized situations of growing income, but when the trend is nationwide and a booming economy is nowhere near the horizon, this local bankruptcy lawyer is troubled. The situation is even scarier where consumers dip into retirement accounts just to survive. The reason for this angst is that bankruptcy presents a real, viable alternative to those struggling with debt.

Norristown Bankruptcy Attorney on Friendly's Emergence from Bankruptcy

Tue, 10 Jan 2012 15:57:34 -0500

Discussed in this blog on September 30, 2011, was the news that Friendly's Ice Cream was headed to bankruptcy. Indeed, the company did file for Chapter 11 bankruptcy protection on Wednesday, October 5, 2011. It emerged -- as is the goal in Chapter 11 bankruptcy -- leaner, more capitalized, and ready to do business anew this week. There were not consequences, however. Thirty-seven restaurants were closed for good on Sunday night and the former owner, Sun Capital Partners, is owed $267.7 million dollars as part of the restructuring.

Income Taxes and Bankruptcy

Mon, 26 Dec 2011 12:48:59 -0500

Most people are surprised to learn that incomes taxes may be discharged -- just like credit card debt or medical bills -- in a Chapter 7 bankruptcy. There are some hurdles in place, however, as the IRS is a powerful entity and the obligation to pay taxes is as old as the nation itself. Nonetheless, if these hurdles are overcome, tax levies can be removed, tax garnishments will cease, and the entirety of the tax obligation is extinguished.

What is a 341(a) Hearing in Chapter 7 Bankruptcy?

Mon, 12 Dec 2011 16:27:56 -0500

As an attorney practicing bankruptcy in Norristown, most cases are Chapter 7. The Chapter 7 is the quickest and easiest way to discharge debts. This ease is more than a mere filing of a bankruptcy petition, however. The law requires that the debtor (the filing party) attend a hearing. This legal mandate is located in Title 11 of the United States Code, Section 341, subsection (a). It is often written as "11 USC 341(a)" but the hearing itself is just called a "341(a)" or, sometimes, just a "341."

Norristown Bankruptcy Attorney Discusses Bankruptcy Fraud

Thu, 01 Dec 2011 19:43:47 -0500

Bankruptcy fraud is a serious issue. Just ask Kenneth G. Reidenbach of nearby Lancaster, Pennsylvania. He is (or was) a bankruptcy lawyer who concealed the truth from the court and the bankruptcy trustee. Apparently, in two cases, he did not reveal real estate proceeds; and in the third case he reported his fee as $1500, when, in fact, it was $4800. He faces up to forty-five years in prison and over two million dollars in fines. His sentencing is scheduled for May 2, 2012.

Doylestown Bankruptcy Lawyer Discusses Creditor Harassment (and False Caller ID)

Mon, 28 Nov 2011 12:12:48 -0500

The idea of Caller ID is a great one: let the answering party determine, based upon who is calling, whether they want to speak to the calling party. If it is a creditor intent on harassment or a telemarketer or just someone you do not want to talk to, the phone need not be answered and the caller can leave a message, generally, if they elect to. In a deceitful act commonly called "spoofing" or "call laundering," some have taken to hiding or mis-displaying that which appears on the Caller ID.

Can I Keep My Car and Other Property in a Chapter 7?

Wed, 16 Nov 2011 14:30:09 -0500

As a bankruptcy attorney, King Law Center regularly fields questions about what property one can keep when filing for Chapter 7 bankruptcy. Since Chapter 13 is known as a repayment plan, it makes sense that property owned by a debtor who files for Chapter 13 gets to keep it. But a Chapter 7 is called a liquidation, and that word connotes surrendering everything but the clothes on your back. In practice, that simply is not how it is. Most debtors keep everything they own...including their cars (whether they are paid off or not).

Philadelphia Bankruptcy Attorney Discusses Municipal Bankruptcy

Fri, 11 Nov 2011 15:18:11 -0500

The county with the highest population in Alabama filed the largest municipal bankruptcy in American history. The economy went down the drain in Jefferson County -- to the tune of over $4 billion -- as a result of a corruption-marred sewer project. Unlike the common Chapter 7 bankruptcy handled regularly by King Law Center, the debts here cannot simply be flushed away.