File Bankruptcy in PA
Author: Steve
When you file bankruptcy in PA you need to think about choosing between a Chapter 7 and Chapter 13 type of bankruptcy. You might be wondering, what is the difference between these two chapters? Most people say that bankruptcy is just a privilege that can get you out of debt. Wrong! You need to understand that when you decide to file bankruptcy in PA it is a point of no return. Bankruptcy can erase some of your debts but not all of it. The other things you have to consider are the effects after filing bankruptcy. It becomes a huge red mark on your credit report that can last for many years and second is getting a new line of credit. Other reasons can bring a negative effect on your future employment. Decide first if you really need to file bankruptcy, because if not there are other ways to solve your debt.
In case you have debt that can cover threefold of your lifetime’s salary, then I guess it is time for you to consider bankruptcy. From this point on, learn what type of bankruptcy suits you, not the one that you like. Take note that the new changes in the bankruptcy law were made effect last October 17, 2005. This makes it hard for people to file bankruptcy, especially in PA. Chapter 7 is difficult to in PA. In order to become eligible for this type of bankruptcy you need to pass the means test. This test will prove if you have the means to repay your debt. One requirement is to go to a credit counseling agency for a credit counseling session. This agency will provide you a repayment plan which is in the first place not for a Chapter 7 type bankruptcy. The new law seems to encourage residents in PA to file bankruptcy the chapter 13 type of bankruptcy.
You can file Chapter 7 if only you have a below average income. This means more than likely you have no other means to pay for your debts and can easily meet the qualifications of chapter 7 eligibility. Filing Chapter 13 usually costs more because you have to pay the counseling and other requirements.
The difference between a chapter 7 and a chapter 13 is the way debt is resolved. In chapter 7, the idea is the debtor will have all of his properties liquidated and the proceeds will be distributed to the creditors in exchange that all debts will be discharged. Chapter 13 on the other hand is a repayment plan that is agreed upon by all parties involved, the debtor should have a steady sufficient disposable balance to pay the debt in a reasonable amount of time.
When you have decided which type of bankruptcy is right for you, you can file without being dismissed. You don’t need a lawyer because that would cost you more. You can just hire a bankruptcy petition preparer to help you with the paperwork. This is the easiest and the cheapest way you can file bankruptcy in PA.
Article Source: http://www.articlesbase.com/finance-articles/file-bankruptcy-in-pa-1332441.html
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For more information on how to file bankruptcy, visit http://www.onlinebkassist.com
Does anyone know of a LEGITIMATE loan/program for $5,000 with bankrtupcy discharged, but bad credit?
Before everyone starts posting responses, here is my full situation. I was careless with my finances and also a self-supported college student at a big 10 school. I had no choice but to file bankruptcy to start over and that was discharged nearly 3-years ago. Since then, I had been VERY good with my finances and responsibilities after realizing this was a “new fresh start” for me to do it all right. I have stable employment and am in a good place now. I am paying to own my own home (through an in-house loan, similar to a land contract) and have never paid late or missed a payment in the past 3-years. I have financed on my own and purchased a new Ford since the bankruptcy discharged and made all my payments on time. This vehicle was traded in for my current Chevy lease (I needed a more reliable car for winter driving after owning the Ford for 14+ months) which I did require a co-signer for, but I have made every single payment in full and on time for the past year. I have finally built up my credit enough to qualify for two major credit cards (not ones that specialize in giving people with “bad credit” or “bankruptcy credit” a chance, but actual major financial institutions) I have both a savings and checking account – simply put, I learned the HARD way and have changed my lifestyle for the better after my experience. The situation I am facing right now is that I am looking to purchase a “2nd” summer car, not to be spoiled, but because I put TOO many miles on my lease and will be penalized. I am aiming to find a reliable car that I can use in the summer time only for the next few years and continue to lease a good winter car. I have done all the research and budgeting and know that I can afford to repay the loan. I have found some good vehicles that fall into the $5,000 price range and am interested in getting a personal loan for such; however, with the stigma of bankruptcy on my record and not that high of a credit score, I have found it extremely difficult to get the banks to truly understand my situation now. I have researched online countless hours for any institution who deals with this type of circumstance, but have had no luck. I was hoping someone out there had been in a similar situation and found something useful. If you have, I would greatly appreciate you sharing that information with me. Prosper.com and the similar have put a halt on all their new loan requests and applications. Thank you so much!
Personal Bankruptcy with and LLC?
I am looking into filing personal bankruptcy but I have a problem. My wife and I are self employed and own an LLC we make very little from this LLC and it has 2 small assets that might not be worth anything maybe less than $500. We only gross $2000-2500 a month. Without my wife and I the company is worthless. Our customers would not be serviceable without us. We get all our income from the business. I want to know if we file personal bankruptcy would that mean we can’t do business anymore? Would we have to change our name? Are there any online references that explain this process and how it would go down?
Since laws governing forming LLCs are specific to each state, it is hard to say exactly what would happen. In most states, the answer is Yes. By filing personal bankruptcy and listing the business debts, you would be disclaiming your liability for those business debts. The business would still be liable, though. You would continue operating the business but would not “personally” be responsible for debts the LLC incurred prior to the bankruptcy filing.
You will need an attorney to file personal bankruptcy and a local attorney is the best source of information concerning LLC laws in your state. The first consultation with a bankruptcy attorney is free, so be sure to let it be known in your initial consultation the situation with your LLC.
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