Discharging Student Loans in Bankruptcy
Whether you approach the issue from the perspective of a parent, a student, a lender, a politician, or a university or college, student loan debt has been a hot topic during the past several years – and if current trends are any indicator, the issue is unlikely to resolve in the near future, especially not […]
Removing a Second Mortgage in Bankruptcy
In BANK OF AMERICA, N. A. v. CAULKETT the Supreme Court of the United States recently issued an opinion in a case regarding the removal of a second mortgage through Chapter 7 Bankruptcy. In that case the Bankruptcy Debtors were ultimately unable to completely or partially reduce their second mortgage. The rule the Court sited […]
Chapter 7 Bankruptcy as a First Option, Not a Last Resort
A recent blog by Steve Rhode of Huff Post was titled “Why a Chapter 7 Bankruptcy Should Be Your First Option and Not a Last Resort.” It discussed the financial benefits of exploring bankruptcy first in order to best address relieving debt. In Philadelphia and its surrounding counties, those dealing with credit card debt, collection […]
Business Bankruptcy and Social Media Accounts
On April 3, 2015 it was decided that social media accounts may be deemed property of a bankruptcy estate. The principle was confirmed in the bankruptcy matter known as In re CTLI, LLC (Bankr. S.D. Tex,. Apr. 3, 2015). The facts of the case were that the Chapter 11 Business Debtor doing business as Tactical […]
Modification of a Chapter 13 Bankruptcy Plan
A Chapter 13 Bankruptcy repayment plan lasts between 36 and 60 months. During that period of time there are many events that may happen which may diminish or enhance one’s ability to repay their creditors under a Confirmed Chapter 13 repayment plan. Change in circumstances that are cause for a modification of a confirmed bankruptcy […]
Debtor Education/Financial Management Course and Bankruptcy
On or about March 10, 2014 (see below) a blog was written and posted by Brad J. Sadek, Esquire regarding the Credit Counseling Course prerequisite to filing a consumer bankruptcy under Chapter 7 or Chapter 13. In addition to the Credit Counseling Course, a second and final course is required. The Second Course, Debtor Education, […]
Staying a Real Estate Tax Sale by way of a Bankruptcy Filing
When the owner of real property fails to make regular payments on municipal debt levied on his/her property, that property may be sold at a real estate tax sale to allow the city/municipality to recover any unpaid debt. These debts can include outstanding water and sewer bills, school district taxes, and real property taxes. The […]
Restoration of Driver’s Privileges and Bankruptcy
The filing of a Petition in Bankruptcy may be of assistance in restoration of a suspended driver’s license in Pennsylvania. First of all it must be determined why the Petitioner in Bankruptcy has his or her driver’s license suspended in the first place in that bankruptcy filings are often most helpful when the underlying license […]
Chapter 7 Repeat Filing
On October 17, 2005, a major change in the bankruptcy law went into effect. The law change specifically referred to as The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”) changed many aspects of consumer bankruptcy law(s). One of the many implemented changes was the waiting period between a consumer’s bankruptcy discharge in […]
Bankruptcy and Student Loans, a Brief Overview
The recognized current standard for including student loans in a bankruptcy discharge is broadly defined as a clear showing that the payment of the student loan debt will impose an undue hardship on the Debtor and his or her dependents. To meet this standard the Bankruptcy Courts have implemented the Brunner test. The Brunner test […]
Payday Loans making a comeback in Pennsylvania?
In March, 2010 I posted a blog about the high cost of payday loans, as high as a 426% interest rate. Payday loans are not the first choice of a consumer looking for a short term loan, and are generally sought in the most dire of financial positions. Pay day loans are often used by […]
Pennsylvania Mortgage Foreclosure Process and Legal Strategies for Homeowners
PENNSYLVANIA MORTGAGE FORECLOSURE PROCESS 1. Notice of Intent to Foreclose The first step in the Pennsylvania residential mortgage foreclosure process in Pennsylvania is for the mortgagor/lender to give the mortgagee/borrower a 30 day notice of intention to foreclose. Under Act 6 of 1974, 41 P.S. Section 403, during this 30 day period the lender must […]
The Omitted Creditor in Bankruptcy?
This blog stems from a Chapter 7 client who asked “What happens if a creditor is not listed?” It is Sadek Bankruptcy Law Officess’ common practice that prior to a bankruptcy filing we review a 3 source credit report and collect all bills from our clients to ensure all creditors are listed on a Bankruptcy […]
Unsecured Debts in Chapter 13 Plans
Chapter 13 Bankruptcy filers generally have to pay a regular monthly payment to the Chapter 13 Trustee. The subject monthly payment is determined by the amount necessary to cure mortgage arrears over a period of up to 5 years or disposable monthly income, in the event any exists. The Bankruptcy Code strictly regulates for the […]
New Bankruptcy Median Income Standards
Pennsylvania Bankruptcy Median Income Standards