Bankruptcy exemptions are critical to individual bankruptcy filers.  Exemptions give debtors in bankruptcy cases the ability to shield certain of their assets from the reach of their creditors.  A fresh start would not be very meaningful if it meant that you had to turn over every stitch on your back and every cent you have.  The United States Bankruptcy Code permits states to provide their own set of exemptions to debtors or to allow debtors to use the exemptions contained in section 522(d) of the Bankruptcy Code.  Some states, including the Commonwealth of Pennsylvania, allow debtors to select between the federal exemption scheme and the exemptions provided under state law.  The Pennsylvania exemptions are scattered through numerous statutes and still others are “common law exemptions,” contained within the written opinions of state courts of law.  Debtors should consult with a bankruptcy lawyer to determine which set of exemptions would protect more assets.

Generally speaking, the federal exemptions permit a debtor to exempt $21,625 in property that the debtor or a dependent of the debtor uses as a residence.  If debtors are married, filing a joint bankruptcy and own their home together, they can protect even more equity by applying both exemptions to their property.  In the case of a married couple where only one spouse has significant debt but both spouses own the home, it may make sense to apply the Pennsylvania exemptions.  In Pennsylvania, married couples who own a home usually hold it as “tenants by the entireties.”  The couple’s interest in property is not divisible and, therefore, creditors of only one spouse cannot resort to that property for payment.

Under the federal exemptions, debtors may exempt $3,450 of their interest in a vehicle.  In a simple example, if you own a vehicle that is worth $10,000 but, upon which you still owe $8,000, you may exempt your $2,000 interest in the vehicle in a bankruptcy case and continue paying on the $8,000 loan to keep the vehicle.  The federal exemptions also permit a debtor to exempt $1,450 of jewelry, $11,525 in household goods, furnishings, wearing apparel, appliances, books, animals, crops or musical instruments, $2,175 in “tools of the trade” of a debtor and most life insurance and retirement assets.  Additionally, the federal exemptions allow for  a “wild card” exemption of $1,150 in any property, which is increased up to $10,825 by any unused homestead exemption.  Thus, if a debtor does not need to exempt equity in a home, that debtor has more flexibility to exempt other property through the use of the wild card exemption.

Knowing how your exemptions work is a prerequisite to getting a meaningful fresh start in a bankruptcy case.  If you have questions about bankruptcy exemptions, you should consult with a bankruptcy attorney for a free consultation.  To find out how, call (412) 925-8194 now.

How can I afford to pay for a bankruptcy case? We hear the question so often that we thought it was time to post an answer on our blog. We think that the idea that someone can be too poor to file bankruptcy is as unjust as being too poor to afford an attorney in a criminal case. In 1963, the United States Supreme Court decided that people should not be denied access to a lawyer in a criminal matter involving the potential for imprisonment simply because they could not afford to pay that lawyer. Neither the United States Supreme Court nor the United States Congress has seen fit to provide similar protections to those facing financial ruin and in desperate need of a fresh start.

Robleto Law is proud to work with its clients to find payment arrangements that our clients can live with. Often, we will agree to represent individuals for as little as $100 down. When we agree to take on a case, your creditors become our problem. They are no longer permitted to make harassing phone calls to you–we deal with them. We have broad flexibility to create payment terms that will work for you. We can accept a credit card payment from a party that is not filing a bankruptcy case (think, parents or a non-filing spouse) or we can set up automated bank transfers at no additional cost.

If you believe you may have trouble paying for a bankruptcy case, contact us. We want you to have a fresh start, freedom from your debts and the ability to create a new financial future and improve your credit.

Call us today. 412-925-8194

A Pittsburgh bankruptcy lawyer can tell you whether a prior bankruptcy filing will affect your ability to qualify for bankruptcy protection or a bankruptcy discharge.

Generally speaking, if you are an individual and you have not filed a bankruptcy case in the previous 8 years, you will qualify to be a debtor under the Bankruptcy Code. If you have filed a bankruptcy case within the last 8 years, your rights will depend on the chapter under which you previously filed and whether you received a discharge of your debts. Additionally, other factors (such as the dismissal of your prior bankruptcy case) could affect your rights.

If you have received a discharge under Chapter 7 of the Bankruptcy Code within the previous 8 years, you will not be eligible to receive a second discharge under Chapter 7. If you have received a discharge under Chapter 13, you cannot receive a discharge under Chapter 7 within 6 years of the prior Chapter 7 discharge; however, you may receive a second discharge under Chapter 13 after only 4 years.

Even if you are not eligible to receive a discharge under Chapter 7 or Chapter 13 of the United States Bankruptcy Code, you may still wish to file a case under Chapter 13 of the Bankruptcy Code to protect your home from foreclosure or avoid some other adverse action.

If you have a prior bankruptcy case and need to file another bankruptcy, you should reach out to a Pittsburgh bankruptcy lawyer.

In a word, maybe. Let’s take a step back and think about the general nature of a trust. Very often, trusts are a vehicle for transferring wealth in a way that is tax favorable and avoids court oversight and litigation. Often, in such cases, a trust acts as a safety deposit box into which a grantor places assets that a trustee will dole out to beneficiaries of that trust pursuant to the trust’s terms.

In other cases, a trust is less like a safety deposit box and much more like a business. A trustee, trust employees or professionals paid through a trust make decisions that put property in the trust (commonly called the “corpus” or the “res”) at risk with the goal of increasing the value of the corpus.

As much as it may seem counter-intuitive to some, bankruptcy protection should be available to individuals and businesses. That concept is so essential to our economy that its basis lies in Article 1, Section 8 of the United States Constitution. Individuals and businesses have creditors who are interested in getting paid as much as possible from the estate of a debtor in bankruptcy and bankruptcy law provides an orderly process for the fair treatment of creditors.

Now, back to the question of whether a trust can file a bankruptcy case. A trust that acts as a business has all of the hallmarks of a debtor. It may have an income stream from its operations that is not sufficient to meet the demands of its creditors but it generates income and has assets and liabilities. It may even have some value as a going concern. It should be permitted to file a bankruptcy case. Contrast this with our “safety deposit box” trust. A safety deposit box trust should not have the right to file bankruptcy for the same reason that your house is not able to file bankruptcy to avoid foreclosure.

The reality of a safety deposit box trust is that its beneficiaries only have an interest in the property contained within the trust. For simplicity, let’s imagine a safety deposit box trust thats res consists only of cash and that pays its sole beneficiary the interest from the res on a monthly basis. There is no reasonable justification to allow that trust to shield itself from the claims of its creditors via the bankruptcy process. To do so would allow the trust beneficiary to reap the benefit of funds to which the trust creditors are entitled.

And now to complicate matters. The safety deposit box/business trust distinction is not one that grantors and the drafters of trusts make. Trusts come in more than 31 flavors. Additionally, the Bankruptcy Code provides no clear delineation and the case law varies by jurisdiction and typically involves an analysis of the trust formation documents and the trust’s business activities. To determine whether a particular trust is eligible to be a debtor under the United States Bankruptcy Code, you should contact commercial insolvency professional.

Need to find a Chapter 13 lawyer in Pittsburgh? Not every bankruptcy lawyer files cases under Chapter 13 and it’s important for debtors to understand the process. Unlike a pure liquidation bankruptcy under Chapter 7, a bankruptcy under Chapter 13 involves a Chapter 13 Plan under which debtors “reorganize” by paying some or all of their debts over a period of 36 to 60 months.

There are clear advantages and disadvantages to Chapter 13. A reorganization can help you to keep assets like a house or car when you are behind on the payments. Also, the period for which credit reporting agencies report the filing is shorter than under Chapter 7. A Chapter 13 could be the best path for you but you should not file any case without consulting with a bankruptcy attorney.

Don’t be afraid to ask questions about the process. Look for a lawyer that offers a free consultation and only enter into an agreement if you feel comfortable with your law firm. Contact us if you need to locate a Chapter 13 lawyer in Pittsburgh.

How will bankruptcy affect your credit score?  Your credit score is the product of complex proprietary algorithms created by the agencies that track credit information.  Almost any financial transaction can have some affect on your credit score.  Pay off a credit card, miss a payment, make a new purchase, open a new account and your credit score moves.

If you are behind on your credit card payments and other debts, chances are your credit score has been trending downward.  In that case, a bankruptcy filing is both good news and bad news for your credit score.  First, it drastically improves your debt-to-income ratio, increasing your ability to pay prospective new creditors.  Second, the bankruptcy filing itself is an adverse credit event.  As a result, there is no simple answer applicable in all cases.

The more important question is whether a bankruptcy case makes sense for you in view of your complete economic situation, your age and your financial goals.  Discussing those matters with a Pittsburgh bankruptcy attorney will help you get a better handle on how bankruptcy will affect your credit score and your future.

Finding a bankruptcy attorney in Pittsburgh can be frustrating. In most cases, the best way to find a good professional of any kind is by referral. It may not be an easy matter to approach acquaintances with your financial problems so, if a personal referral is not an option for you, interview the lawyers themselves.

If you don’t feel comfortable with first law firm you approach, move on. You will be confiding in that lawyer and trusting that firm to listen to you and to provide you with sound legal advice, tailored to your unique situation. Your financial distress should not be compounded by a lawyer who talks past you or, worse still, ignores your calls.

I welcome you to contact my law firm and schedule a no obligation, free consultation with a Pittsburgh bankruptcy lawyer.

Chapter 7 bankruptcy questions in Pittsburgh? Whether you’re an individual or a business debtor, the concept is basically the same. You report your assets, liabilities and financial affairs and your creditors are paid pursuant to the priority scheme set forth in the Bankruptcy Code from property of the debtor’s estate.

Consumer debtors are entitled to exemptions which vary from state to state. To further complicate matters, an individual debtor may be permitted to file in one jurisdiction but be required to follow the exemption rules of another state, depending on where that debtor has lived in the period preceding the filing of the bankruptcy case.

Before filing a Chapter 7 bankruptcy case, both businesses and individuals should consult with a qualified Chapter 7 bankruptcy lawyer in Pittsburgh.