Best Bankruptcy & Debt Lawyers in Scranton

About Bankruptcy & Debt Law in Scranton, United States

Bankruptcy & Debt law in Scranton, United States, is a legal framework designed to help individuals and businesses handle financial distress caused by overwhelming debt. Bankruptcy provides a structured way to either eliminate or repay debts under the protection of the federal bankruptcy court. In Scranton, part of the Middle District of Pennsylvania, residents have access to various bankruptcy options such as Chapter 7 and Chapter 13, depending on their financial situations. These laws also work alongside state debt collection regulations to ensure fair treatment for debtors and creditors alike.

Why You May Need a Lawyer

There are several common situations where consulting with a lawyer experienced in Bankruptcy & Debt can be beneficial:

• Filing Complexity: Bankruptcy involves intricate paperwork and legal procedures that can be difficult to navigate without guidance.
• Debt Collection: If you are facing aggressive debt collection practices, a lawyer can help protect your rights and negotiate with creditors.
• Asset Protection: A lawyer can help you determine which assets are exempt from liquidation during bankruptcy.
• Choosing the Right Type of Bankruptcy: Understanding whether Chapter 7 or Chapter 13 is more appropriate for your situation often requires legal expertise.
• Avoiding Mistakes: Errors in filing or interacting with creditors can lead to severe consequences, which a lawyer can help you avoid.

Local Laws Overview

Scranton's local laws regarding Bankruptcy & Debt primarily follow federal regulations, given that bankruptcy cases are predominantly managed at a federal level. However, Pennsylvania does allow for certain exemptions and protections under its state laws. Key points include:

• Exemptions: Pennsylvania permits residents to choose between federal and state exemptions. Choosing the right set of exemptions can influence which assets you retain.
• Foreclosure Process: Pennsylvania is a judicial foreclosure state, meaning creditors must go through the state's court system to foreclose on property, providing debtors a chance to legally contest.
• Debt Collection Rules: State laws in Scranton protect residents from unfair collection practices, complementing federal laws under the Fair Debt Collection Practices Act (FDCPA).

Frequently Asked Questions

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 allows individuals to discharge most unsecured debts quickly, often within a few months. In contrast, Chapter 13 involves creating a repayment plan to pay off debts over three to five years while keeping assets.

How do I know if I'm eligible for bankruptcy?

Eligibility depends on several factors such as income, debt levels, and previous bankruptcy filings. The means test determines eligibility for Chapter 7, while Chapter 13 requires a stable income to manage a repayment plan.

Will bankruptcy stop creditors from contacting me?

Yes, an automatic stay is issued when you file for bankruptcy, which legally halts most collection actions against you, including calls, letters, and lawsuits.

How will bankruptcy affect my credit score?

Bankruptcy will negatively impact your credit score, but it can also provide a fresh start to rebuild your credit over time. The impact diminishes as you demonstrate good financial habits post-bankruptcy.

Can all debts be discharged in bankruptcy?

Not all debts can be discharged. Common non-dischargeable debts include alimony, child support, most student loans, and certain taxes.

What assets can I keep if I file for bankruptcy in Pennsylvania?

Pennsylvania allows you to choose between state and federal asset exemptions. Common exempt assets include certain amounts of home equity, vehicles, personal property, and retirement accounts.

How much does filing for bankruptcy cost?

The cost varies depending on the type of bankruptcy and complexity of your case. This generally includes court filing fees, attorney fees, and completion of credit counseling courses.

Will I lose my house if I file for bankruptcy?

This depends on the type of bankruptcy and your ability to keep up with mortgage payments. Chapter 13 may help you keep your home with a repayment plan.

How long does the bankruptcy process take?

Chapter 7 bankruptcy typically takes three to six months from filing to discharge, whereas Chapter 13 involves a repayment plan spanning three to five years.

Do I have to go to court for bankruptcy?

You will need to attend a meeting of creditors, also known as a 341 meeting, but it's not a court trial. You may also attend court hearings depending on your case's specifics.

Additional Resources

For additional help with bankruptcy and debt issues in Scranton, consider the following resources:

• United States Bankruptcy Court for the Middle District of Pennsylvania: Provides information about filing procedures and local bankruptcy rules.
• Pennsylvania Legal Aid Network: Offers free legal services to individuals with low income facing debt-related issues.
• Consumer Financial Protection Bureau (CFPB): Offers resources and advice on managing debt and understanding consumer rights.
• Federal Trade Commission (FTC): Provides information on debt collection rights and identity theft prevention.

Next Steps

If you find yourself overwhelmed by debt and considering bankruptcy, taking the following steps can help:

1. Consult with a Bankruptcy Attorney: Seek a consultation to understand your options and the best course of action for your financial situation.
2. Gather Financial Information: Organize your financial records, including income, expenses, debts, and assets, to prepare for discussions with your attorney.
3. Consider Credit Counseling: Approved credit counseling can help you understand budgeting and potentially avoid bankruptcy through alternative debt management strategies.
4. File for Bankruptcy: If advised, proceed with filing your case under the appropriate chapter with legal guidance.
5. Attend Mandatory Meetings: Participate in necessary meetings, like the 341 meeting, and comply with all requirements of the bankruptcy process.

By following these steps and utilizing the right legal resources, you can navigate the complexities of Bankruptcy & Debt laws and work towards regaining financial stability.