Law Office of Robert Braverman, LLCBankruptcy Lawyer | Locations in Cherry Hill, Philadelphia & Willingboro 2024-03-15T23:34:32Zhttps://www.bravermanlaw.com/feed/atom/WordPressOn Behalf of Law Office of Robert Braverman, LLChttps://www.bravermanlaw.com/?p=479462024-03-15T23:34:32Z2024-03-15T23:34:32ZThere are different rules for different bankruptcy cases
The average late payment or collection account is subject to strict credit reporting limitations. Generally speaking, creditors can only report a specific debt for seven years after initially sending information about it to the credit bureaus.
Bankruptcy can help people improve their long-term credit by replacing numerous delinquent accounts and other negative marks on their credit reports with a single note about their bankruptcy discharge. How long the credit bureaus can provide lenders with information about a bankruptcy depends on the type of bankruptcy and individual pursues.
A Chapter 7 bankruptcy is relatively quick and does not involve any structured attempts to pay creditors before the discharge, so the credit bureaus can maintain the record of the discharge for 10 years after the courts grant it.
If someone files for a Chapter 13 bankruptcy, they spend at least three years making monthly payments as part of a repayment plan. The discharge at the end of that process typically only appears on someone's credit report for seven years.
The good news for those in need of financial relief is that the impact a bankruptcy discharge has on creditworthiness diminishes a bit every year. The more aggressively someone works to rebuild their credit, the sooner they may qualify for better credit opportunities after their discharge.
Many people start receiving credit card offers within a few months. Larger financial instruments, including vehicle loans and mortgages, might be available after just a few years. Feeling nervous about the negative impact of a personal bankruptcy filing is perfectly normal. Prospective filers who learn about the credit impact of bankruptcy may be able to make the most of their filing while diminishing its negative consequences.]]>On Behalf of Law Office of Robert Braverman, LLChttps://www.bravermanlaw.com/?p=479442024-02-14T19:47:42Z2024-02-14T19:47:42ZBankruptcy can prevent a lawsuit from moving forward
Creditor lawsuits can be very disempowering. Even though an individual may have a very reasonable explanation for why they have fallen behind on a payment arrangement with a creditor, a judge is unlikely to spend much time considering their explanation.
A debt-related creditor lawsuit primarily looks at whether the debt itself is legitimate and if the debtor has in fact fallen behind on their financial obligations. If the creditor can prove that the debtor has failed to meet their agreed-upon financial responsibilities, the courts may rule in their favor despite the debtor having experienced verifiable hardship.
The courts can place a lien against someone's primary residence or grant a levy against financial accounts. They could even allow a creditor to garnish someone's wages. A creditor could intercept a portion of someone's paycheck, leading to a far worse financial situation.
When someone files for bankruptcy in response to a creditor lawsuit, the courts typically dismiss the pending lawsuit until they properly review and respond to the bankruptcy filing. Someone can avoid a worst-case scenario while simultaneously setting themselves up for a discharge of some of their debts.
The automatic stay granted after someone files for bankruptcy can protect the filer beginning the same day that they submit documents to the courts.
Understanding the risks inherent in a creditor lawsuit might help someone recognize why they may benefit from making a quick decision to file for bankruptcy.]]>On Behalf of Law Office of Robert Braverman, LLChttps://www.bravermanlaw.com/?p=479422024-01-17T15:39:53Z2024-01-17T15:39:53ZRetirement savings may qualify for an exemption
Only Chapter 7 bankruptcy requires asset liquidation. Even then, only individuals who cannot exempt their property have to worry about liquidating their assets. If someone files a Chapter 13 bankruptcy, they do not have to worry about their retirement savings. However much they have set aside has protection from liquidation because there is no requirement to use their assets to pay creditors.
In a Chapter 7 bankruptcy, some asset liquidation is occasionally necessary. Even then, filers can protect some of their most valuable assets. There are Pennsylvania state bankruptcy exemptions that can protect someone's retirement savings.
People can usually protect deposits of up to $15,000 per year. However, funds deposited within 12 months of the bankruptcy filing may not have exemption protection. There are also exemptions for pensions managed by employers. A retirement account inherited from someone else generally is not eligible for the same consideration.
People who file for personal bankruptcy in Pennsylvania also have the option of choosing federal bankruptcy exemptions. The amount of retirement savings or pension benefits that people can protect changes every three years. Currently, as of the 2022 adjustment, those using federal bankruptcy protections can exempt up to $1,512,350 in retirement funds from liquidation in a Chapter 7 bankruptcy.
Ultimately, learning more about what property is eligible for exemption during bankruptcy may help people feel more confident about filing.]]>On Behalf of Law Office of Robert Braverman, LLChttps://www.bravermanlaw.com/?p=479392023-12-27T13:20:56Z2023-12-27T13:20:56Zrebuild and restructure one's financial life with more awareness and better habits. This rebuilding period is crucial and requires a strategic approach to better ensure long-term financial health and stability.
Remember the skills you learned during bankruptcy
The experience of going through bankruptcy includes classes that provide valuable financial lessons. If you have filed for bankruptcy, it's important to remember and apply these lessons moving forward. This includes understanding the importance of living within one's means whenever possible, recognizing the dangers of accumulating debt and the significance of saving for emergencies.
These skills are crucial in preventing a repeat of past financial challenges and laying a solid foundation for a more secure financial future. It’s important to remember to continue using these skills in the long term.
Set a clear budget based on your circumstances
Creating and adhering to a budget is one of the most effective tools for financial management post-bankruptcy. A budget acts as a roadmap, guiding financial decisions and helping to avoid the pitfalls of overspending and financial mismanagement. The budget that’s set should be realistic, based on current income and living expenses. Diligently tracking income and expenses helps to ensure that spending aligns with your financial goals.
Begin to rebuild your credit history
Bankruptcy negatively impacts credit scores, which makes it a challenge to obtain new credit. Rebuilding credit history is essential. Start with getting a secured credit card or a small installment loan and make timely payments. As time progresses, on-time payments will help to boost your credit score, which can lead to more opportunities for obtaining new credit in the future.
The emotional relief that comes with a discharged bankruptcy is often welcomed by filers. While there might be some uncertainty about their financial future, this is an ideal chance to rebuild their finances in thoughtful and positive ways.]]>by Law Office of Robert Braverman, LLChttps://www.bravermanlaw.com/?p=479382023-12-12T16:14:44Z2023-12-12T16:14:44Zhttps://www.bravermanlaw.com/debt-problems-solutions/foreclosures/It is the second bankruptcy by the company in the last 3 years according to WHYY.org. https://whyy.org/articles/philadelphia-fashion-district-preit-debt-bankruptcy/ . The malls owned by PREIT include the Fashion District in Center City Philadelphia PA, the Cherry Hill Mall, Willow Grove Park and the Plymouth Meeting Mall. A number of malls have struggled in recent years as more and more consumers turn to on line shopping to address their needs. Most malls may need to rethink the nature of malls and the types of stores or businesses that can survive in this changing envirnment. According to the WHYY article, the property in Philadelphia where the Fashion District operated could be used to build a new home for the Philadelphia Seventy Sixers.
]]>On Behalf of Law Office of Robert Braverman, LLChttps://www.bravermanlaw.com/?p=479362023-12-12T15:47:56Z2023-11-29T00:58:14ZHow long do Chapter 13 payments usually last?
The filer has to notify their creditors about their bankruptcy and attend a meeting to address their obligations. They propose a plan, attend a creditor meeting and then finalize repayment plan arrangements with the courts. After that, they will make a monthly payment that the trustee distributes among eligible creditors.
The nature of the debt that someone owes, their income and their total value of assets influence how long they have to keep making payments before a discharge. The minimum length of a Chapter 13 repayment plan is three years or 36 months. During that time, the filer will need to make monthly payments. The repayment plan could require up to five years of payments before someone becomes eligible for a discharge. In cases where debtor's income is higher than the statewide average they will be required to have a five year plan.
Typically, they will need to commit their disposable income to those payments. If someone's circumstances change, they may need to go back to court as quickly as possible to adjust their repayment plan to reflect their reduced income or increased expenses. If someone fails to make all of the required payments, the courts may deny them their discharge and dismiss their filing.
Understanding the obligations that come with a Chapter 13 bankruptcy may help people choose the right option when dealing with financial challenges.]]>On Behalf of Law Office of Robert Braverman, LLChttps://www.bravermanlaw.com/?p=479352023-10-26T11:16:32Z2023-10-26T11:16:32ZUnderstanding out-of-pocket expenses
One of the primary culprits behind financial strain, even with health insurance, is out-of-pocket expenses. You must pay these costs because your insurance doesn't fully cover them. While insurance may cover many expenses like hospital stays or surgery, things like co-pays, deductibles and other costs can add up quickly for people with chronic illnesses or those requiring frequent medical attention.
Navigating in-network and out-of-network services
The costs of medical services can vary widely depending on whether a healthcare provider is in-network or out-of-network. If you need specialized care from an out-of-network provider, your insurance may cover only a fraction of the costs, leaving you with a large bill.
Impact of high-deductible plans
High-deductible health plans often have lower monthly premiums, making them attractive options for many. The trade-off with this is that you'll need to spend a considerable amount before your insurance starts to cover costs. As you try to meet that deductible, this can lead to immediate financial strain for unexpected or emergency medical situations.
Uncovered services and medications
Not all services or medications are covered by insurance. Some treatments, such as certain forms of alternative medicine, are often not covered. The same goes for some prescription medications, which can be particularly expensive.
The psychological toll of looming debt
Beyond the immediate financial burden, the constant worry about mounting medical bills can have severe psychological impacts. Stress and anxiety can worsen health conditions, creating a vicious cycle where medical costs and health problems escalate simultaneously.
Ultimately, medical care costs often become crippling. If you’re drowning in medical debt, filing for bankruptcy may help you to regain control of your finances. Be sure to file as soon as possible to enjoy the benefits of this fresh start, especially because the longer you wait to file, the more strained your budget – and your well-being – are likely to become.]]>by Law Office of Robert Braverman, LLChttps://www.bravermanlaw.com/?p=479342023-10-13T16:51:36Z2023-10-13T16:51:36Zhttps://www.bravermanlaw.com/bankruptcy-law/]]>On Behalf of Law Office of Robert Braverman, LLChttps://www.bravermanlaw.com/?p=479332023-10-13T16:44:14Z2023-09-22T21:59:42ZIn a Chapter 7 bankruptcy
The type of bankruptcy most associated with asset liquidation is Chapter 7 bankruptcy. Some people even refer to Chapter 7 proceedings as liquidation bankruptcy. Thankfully, people can protect most or all of their property from sale during even Chapter 7 proceedings.
Those who file for bankruptcy have the option of exempting specific assets from liquidation based on federal or state statutes. They will have to submit an inventory of assets to the courts outlining what is exempt and what may be at risk of liquidation. Those who qualify for Chapter 7 proceedings can usually protect all of their assets with careful preparation. Asset liquidation is only necessary in a small minority of Chapter 7 filings.
In a Chapter 13 bankruptcy
People sometimes call Chapter 13 bankruptcy a wage earner's plan because the process involves creating a repayment plan. The person filing will make three years or more of structured payments after which the courts may discharge the remaining balances on certain debts. One of the benefits of a Chapter 13 bankruptcy is that there is no risk of liquidation whatsoever, meaning that people can protect all of their resources so long as they successfully complete the process.
Bankruptcy exemptions may apply to home equity, vehicles and even retirement savings, as well as personal property. Seeking personalized legal guidance to learn more about the rules for personal bankruptcy may help people feel more confident about filing for this form of debt relief and taking greater control of their finances accordingly.]]>On Behalf of Law Office of Robert Braverman, LLChttps://www.bravermanlaw.com/?p=479322023-08-22T21:54:13Z2023-08-22T21:54:13ZLenders typically close accounts
Any amount owed on a revolving line of credit will typically be an unsecured debt that may be eligible for discharge in the bankruptcy proceedings. To avoid any additional losses, credit card lenders and other parties that provide revolving lines of credit typically close those accounts as soon as they learn about the bankruptcy. Usually, they will know about it the same day that someone files paperwork with the courts. Most people will not have access to revolving lines of credit again until after the resolution of their bankruptcy filing. However, they can look forward to discharging the outstanding balance on those accounts if they are successful.
New opportunities will soon arise
Credit cards are often among the first forms of credit people qualify for after a bankruptcy discharge. Some credit card companies may even start soliciting those who have recently filed for bankruptcy just a few months after they complete the process. Although those early offers may have high interest rates or require security deposits, they can be important tools for individuals hoping to rebuild their credit. Eventually, those who discharged debts previously in a bankruptcy will be eligible for better credit cards.
The record of a filer’s bankruptcy will eventually come off of their credit reports, which will open up many more credit opportunities. When people understand what will happen with their revolving lines of credit, they can more effectively plan for the bankruptcy process. Understanding what bankruptcy will mean for one's personal finances and future may help people make a more informed decision about handling issues with debt generally as well.
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