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.

Deciding how to respond to unpaid, aging and doubtful accounts receivable is a critical business decision. However, a prudent policy regarding collection practices should always be informed by the potential affect of a bankruptcy filing of a major customer. When indications suggest that such a customer might be insolvent, the intuitive move might be to quickly tighten credit terms, force the customer to pay a portion of its outstanding balance with all new orders or require the customer to pay cash.

A well developed collections practice anticipates bankruptcy fillings. The Federal “preference” and “fraudulent transfer” statutes, could place your business in the undesirable position of having to return payments to a bankruptcy estate even when that debtor still owes you or your business a significant debt. Whether you’re reacting the bankruptcy filing of a major customer or believe that a customer owing a substantial debt to you may be preparing to file a bankruptcy case, you should promptly contact the insolvency professionals at Robleto Law.

If you have fallen behind on your mortgage, you have probably received mail and telephone calls urging you to bring your mortgage current. Perhaps things have gone further and your lender has brought a legal proceeding against you. Each state provides protections for homeowners however, there is finality to the foreclosure process and response deadlines often have irrevocable consequences.

If your lender is seeking payment of mortgage arrearages that you are unable to pay, you should contact an insolvency professional at once. For most people, their home is their single most valuable asset. If you have regular income, you may be eligible to restructure your debt and make payments over a period of 3 to 5 years. Your lender may be willing to accept a deal to avoid a costly foreclosure and an uncertain real estate market. Even if keeping your house is not a realistic option, you should contact a bankruptcy lawyer. Many people are surprised to discover that, even though they no longer own their homes, they remain responsible for a large debt. An insolvency professional can help you reduce or eliminate that debt.