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Pennsylvania Bankruptcy Questions & Answers

4 Answers | Asked in Bankruptcy for Pennsylvania on

Q: If a debt is included in chapter 13 bankruptcy, can it be sold to a collection agency

W. J. Winterstein Jr. answered on May 5, 2019

Yes, and it happens frequently. There are companies out there whose business is to handle/service accounts of others that are deemed "bad", or "uncollectible", etc. Transfers of claims are specifically authorized by the Bankruptcy Code, and also occur in Chapter 7, 11 and 12 cases.

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2 Answers | Asked in Bankruptcy for Pennsylvania on

Q: I filed chapter 13 in 2012. it was converted to chapter 7 in 2014. I have financial issues again and am exploring option

My expenses exceed income. I am looking at both chapter 13 and chapter 7 options. Did the clock start when i filed for the chapter 13 in 2012 or the conversion date to chapter 7 in 2014? At what time am I able to consider chap 13 or 7? My minimum payments are current but only because I am taking... Read more »

W. J. Winterstein Jr. answered on Apr 18, 2019

Interesting question.

Section 727 of the Bankruptcy Code provides--

(a)  The court shall grant the debtor a discharge, unless--

(8)  the debtor has been granted a discharge under this section, under section 1141 of this title, or under section 14, 371, or 476 of the...
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3 Answers | Asked in Bankruptcy for Pennsylvania on

Q: i loaned a friend? $5,000 so he could bye a vehicle. he filed for bankruptsy and now says he no longer owes me

the money and there is no way for me to get my money back from him. is this true?

W. J. Winterstein Jr. answered on Apr 12, 2019

Unless you took a security interest in the debtor's real or personal property at the time you advanced the money, and "perfected" your lien by filing in the designated places (Registrar of deeds in county where real property is located, or Sec. of State of PA and/or county for UCC-1 filings), then... Read more »

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3 Answers | Asked in Collections and Bankruptcy for Pennsylvania on

Q: I lost a Civil Law suit with about 141k awarded to the other person. Can they come after my 401K to collect?

W. J. Winterstein Jr. answered on Mar 20, 2019

If your 401k is a "qualifying plan" (i.e., meets the requirements of Section 401(k) of the Tax Code), then your 401k plans should be exempt from execution.

Your judgment creditor may nonetheless attempt to levy on your 401(k) account, and you will need to file written objections to that...
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2 Answers | Asked in Bankruptcy for Pennsylvania on

Q: I need to file bankruptcy but I sold my house 6 months ago, how long do I need to wait til file

W. J. Winterstein Jr. answered on Feb 7, 2019

If you've sold your house for a "fair price", that is, for fair market value, in an arm's length transaction, then the sale of your house should have no impact on your decision about, or timing of, a bankruptcy filing.

You need to evaluate your current asset values and debts, and the...
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1 Answer | Asked in Bankruptcy, Tax Law, Collections and Gov & Administrative Law for Pennsylvania on

Q: PA-What's the Tax Penalty % for "Early W/Draw" of a Pension Plan? Also with "E W/D" can the IRS claim $ owed 4 yrs prior

My husband is currently disabled and we have had no income now for months. Until he can get any kind of help we have to pay to get our prior taxes done for his corporation (he no longer has - due to not being able to walk anymore); before we can do our personal taxes.

The only way to... Read more »

Timothy Denison answered on Jan 30, 2019

The penalty varies from plan to plan. You can check with the plan administrator to determine exact amount. It is unlikely that the IRS is even aware of the pension plan, do very doubtful that they will be able to seize money.

3 Answers | Asked in Bankruptcy for Pennsylvania on

Q: Question about filing bankruptcy. I filed Chapter 13 in Nov 2012 for old IRS debt. Converted to Chapter 7 Nov 2014.

Discharged Feb 2015. I am considering filing Chapter 7 again. Is my waiting period based upon the original filing date of 2012 or the conversion date in 2014? At what point would I be eligible to file?

W. J. Winterstein Jr. answered on Jan 15, 2019

The clock starts to run from the date your Order of Discharge was entered.

You cannot get another discharge for 8 years from that date.

The spacing, until recently, was six years between discharges, and it became common to file a "chapter 20" bankruptcy, meaning first, a Chapter 7,...
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2 Answers | Asked in Bankruptcy and Social Security for Pennsylvania on

Q: I’m disabled & was thinking of claiming bankruptcy, but I’m not sure if it will effect my SSI. How will it effect me?

W. J. Winterstein Jr. answered on Jan 11, 2019

There are different "chapters", or forms, of bankruptcy. In a Chapter 7, the simplest form, your income is only used to determine your eligibility to file under that chapter. If your income is below the "median income" for the state of PA, you'd have no income issues.

In a Chapter 13...
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2 Answers | Asked in Bankruptcy for Pennsylvania on

Q: How difficult is it to file bankruptcy for student loans? I have heard they do not count as a part of debt "forgiveness

I am seriously considering filing bankruptcy because my student loan payments are crippling and I cannot afford to pay them. I would be homeless and couldn't afford childcare or pretty much any other necessity. I have heard that filing for bankruptcy doesn't include student loans, but it never... Read more »

W. J. Winterstein Jr. answered on Jan 8, 2019

To discharge, or reduce, any student loan debt, you must show "extreme hardship", and that bar is very high.

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1 Answer | Asked in Bankruptcy, Family Law, Foreclosure and Real Estate Law for Pennsylvania on

Q: Could you please provide information on joining current class action lawsuit against Ocwen Loan Svc'g for Pennsylvania

Kathryn Hilbush answered on Dec 7, 2018

No idea. I'd google it and see if you can locate the information about the particular lawsuit you're interested in. I tried but, not knowing why you believe you may be eligible to apply to join one of the several lawsuits out there, my ability to come up with any sort of suggestion was too limited.

2 Answers | Asked in Bankruptcy for Pennsylvania on

Q: I am planning to file Chapter 7 bankruptcy. My case is simple because I don't have a anything of value.

Is there a flat rate lawyers charge and do they allow payments?

Brad Jonathan Sadek answered on Dec 6, 2018

Yes, in a Chapter 7 bankruptcy, otherwise known as a "fresh start bankruptcy" our firm charges a flat rate fee. The flat rate is dependent on your specific situation. Our office offers a payment plan for legal fees prior to filing for all clients.

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2 Answers | Asked in Bankruptcy for Pennsylvania on

Q: I got sued for something I never did. Discover sued me for 12k. Court preceding took place without my knowledge.

I was never given a notice and I am not aware of the 12k they are suing me for. I never took out that money or used it. What do I do?

W. J. Winterstein Jr. answered on Nov 30, 2018

Basic due process requires that in any litigation, the defendant must be served/provided (with proof of service) with the Complaint and Summons, whether in PA state or federal courts.

You should investigate, or have someone investigate, the validity of service of process in the Discover...
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2 Answers | Asked in Bankruptcy for Pennsylvania on

Q: Filling chapter 7 to discharge 70K debts as an international student. Please advice?

I am a PhD Student on F1-Visa status. I have debts of 70K (Credit cards 50 K, Personal loans - 9K and Car loan- 11k) over the period of 5 years credit history with SSN. I lost money in stock trading over 140K last 3 years. Currently , I don't have any job and doing my PhD. Please advise how to file... Read more »

Timothy Denison answered on Oct 25, 2018

You really need a competent bankruptcy lawyer to help you file. Filing should not affect your immigration status.

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2 Answers | Asked in Bankruptcy and Divorce for Pennsylvania on

Q: Divorce is taking 4 years+, hold up is my wife's bankruptcy lawyer taking long on agreement, can i do anything to speed

it up? Divorce can't be finalized until there's an agreement with her bankruptcy lawyer about amount he believes I should pay towards her bankruptcy. He just is slow to answer, has taken over 700 days and still is not answering. Anything I can file or do to help speed it up?

Kathryn Hilbush answered on Oct 16, 2018

This question is, on the surface, rather odd because, unless she has obtained an order from the bankruptcy court allowing her divorce case to proceed, it cannot because the bankruptcy, as a federal action, overrides all state court actions relating to her assets. If you don't have an attorney,... Read more »

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1 Answer | Asked in Bankruptcy for Pennsylvania on

Q: How do I find out if I qualify for legal aid or pro bone for bankruptcy? I live in Armstrong county Pennsylvania.

Currently not working I have my own business but can't get work due to my Dept and not being able to get the materials needed for the jobs I get offered to bid on.

Timothy Denison answered on Oct 7, 2018

Check with your local legal aid office or bar association to see if you qualify or if they keep a list.

1 Answer | Asked in Bankruptcy for Pennsylvania on

Q: Are proceeds from a lawsuit okay to deposit if debt was included in a bankruptcy six years ago that was discharged

Filed (Oct/2012) and received a chapter 7 discharge in Dec/2012. Received a check in mail this week (9/27/18) for fees reimbursed from lawsuit from one of my discharged debts not entire debt but usury interest reimbursement . Unknowingly I deposited it today. Is this money mine or the bankruptcy... Read more »

Timothy Denison answered on Oct 7, 2018

Technically, it belongs to the estate but practically it’s only $271 and you probably have exemptions to protect it if the did claim it and it’s 6 years old, so probably ok to just deposit.

1 Answer | Asked in Bankruptcy, Consumer Law and Contracts for Pennsylvania on

Q: how do I find out if someone filed bankruptcy?

Timothy Denison answered on Sep 28, 2018

You can open a PACER account at PACER.gov and view filings.

1 Answer | Asked in Bankruptcy and Divorce for Pennsylvania on

Q: Are there any pro bono lawyers for woman needing a bankruptcy lawyer?? Or divorce lawyer

He left. Now filing for bankruptcy

I dont want to file

Have all debts working out

Timothy Denison answered on Sep 24, 2018

Check with your state and local bar associations. They maintain pro bono and reduced fee attorneys who may be able to help you.

1 Answer | Asked in Bankruptcy and Divorce for Pennsylvania on

Q: In the process of a divorceHouse isnt sellingHe is filing for bankruptcyWhat is my best options?

We split bills ones in my name vs his name

The house is the biggest issue?!

Its been on the market since last October

No one making offers to cover balance due

Cash broke!

Timothy Denison answered on Sep 24, 2018

1) Wait for House to sell.

2). Deed in lieu of foreclosure back to bank

3). His bankruptcy will stay proceedings for a bit and maybe the trustee can sell in and you will get your share, if any, after sale and payment of mortgage.

4) if YOU have no equity either, maybe you...
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