Archive for the ‘Bankruptcy and Debt Restructuring’ Category

For homeowners in Pennsylvania facing the risk of real estate tax sale proceedings, filing for bankruptcy can provide critical relief. The automatic stay, a powerful legal provision under the U.S. Bankruptcy Code, offers homeowners protection by immediately halting real estate tax sale proceedings. This article explores the impact of the automatic stay in Pennsylvania, emphasizing how it grants homeowners more time to either sell their property for its fair market value or repay real estate tax arrears within a 60-month term through bankruptcy. Understanding the Automatic Stay: The automatic stay is a fundamental component of bankruptcy law, specifically outlined in… read more »

Attorney Larry Young, Shareholder and Chair of CGA Law Firm’s Bankruptcy Practice Group, has been honored by The Best Lawyers in America® award for his work in Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law in the Harrisburg area. Young will be featured in the 31st edition of  The Best Lawyers in America® for this prestigious achievement. Since it was first published in 1983, Best Lawyers® has become universally regarded as the definitive guide to legal excellence. Best Lawyers recognitions are compiled based on an exhaustive Purely Peer Review® evaluation. More than 184,000 industry-leading lawyers are eligible to vote, and they have received… read more »

Where do lobsters go to borrow money? The prawn shop. Or in the case of Red Lobster, the “Stalking Horse”, in its recently filed Chapter 11 Bankruptcy.  In 2003, Red Lobster lost millions of dollars on an all-you-can-eat “Endless Crab” promotion as a result of the unanticipated rising crab prices. Hindsight is 20/20, they say; however, 20 years later, Red Lobster repeated history with an “Ultimate Endless Shrimp” promotion, which has caused the chain to seek the protection of a Chapter 11 Bankruptcy. But have no fear; the Cheddar Bay biscuits will prevail due to the chain’s strategic use of… read more »

Interest rates continue to rise, and individuals and businesses grappling with substantial credit card and unsecured debt find themselves navigating treacherous financial waters. Traditionally, debt consolidation programs have offered an alternative to bankruptcy by combining multiple debts into a single, manageable payment. However, as interest rates reach unprecedented highs, the once-reliable lifeboat of debt consolidation is increasingly becoming a sinking ship. As an experienced bankruptcy attorney, I’m now witnessing a shift in the financial dynamics that make bankruptcy a more viable option for those drowning in debt. Here are a few reasons why bankruptcy continues to gain prominence over debt… read more »

Driving Under the Influence (DUI) not only jeopardizes your life and the lives and safety of others – it’s also a financial nightmare with ruinous consequences. Court fees, costs and restitution are higher than you might think – not to mention potentially enormous damages demanded by victims for property damage and personal injury.  When you factor in the potential loss of your driver’s license or employment, the picture of financial devastation becomes very clear. As part of my bankruptcy practice, I help people get a fresh start from debt. Most of the time, these debts involve situations outside of my… read more »

Bankruptcy is often surrounded by myths and misconceptions that cloud people’s understanding of this legal process. It is essential to separate fact from fiction to make informed decisions about financial matters. In this article, we aim to debunk the top five most common bankruptcy myths and provide accurate information to help individuals better understand the process. Fact: Bankruptcy laws include exemptions that protect certain assets from liquidation. These exemptions vary by jurisdiction but typically cover essential items such as your home, vehicle, clothing, and necessary household goods. Most individuals who file for bankruptcy can retain their essential assets while finding… read more »

Divorce is often accompanied by emotional and financial turmoil, with disputes over debt being a common source of contention between spouses. However, in certain situations, filing for bankruptcy can alleviate the burden of debt-related conflicts and make the divorce process less contested and easier. This article explores how bankruptcy can simplify divorce cases by removing the need to fight over debt. 1. Debt Discharge: Filing for bankruptcy allows individuals to discharge or eliminate certain types of debt, depending on the bankruptcy chapter chosen (such as Chapter 7 or Chapter 13). Discharging debts can significantly impact a divorce case by eliminating… read more »

By Attorney Brent C. Diefenderfer Seeking help from a bankruptcy attorney early in your financial struggles can significantly impact the outcome of your bankruptcy case. An early consultation allows for a more strategic approach to your bankruptcy filing by providing ample time to plan and prepare. Here are a few examples highlighting the benefits of early assistance: 1. Preserving Assets and Maximizing Exemptions: When you consult a bankruptcy attorney in advance, they can guide you on protecting your assets within the confines of bankruptcy laws. By strategically planning asset transfers and utilizing exemptions, you can safeguard your property while obtaining… read more »

Attorney Larry Young, Shareholder, and Chair of CGA Law Firm’s Bankruptcy Practice Group, has been honored by Best Lawyers® with the 2024 “Lawyer of the Year” award for his work in Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law in the Harrisburg area. Larry will be featured in the 30th edition of The Best Lawyers in America® for this prestigious achievement. As one of the country’s oldest and most respected peer-review attorney guides, The Best Lawyers in America® complies its list by conducting peer-review interviews. Lawyers must earn inclusion each year. Only a single lawyer in each practice area and community is honored with the annual… read more »

Much about bankruptcy law is counterintuitive and often misinterpreted. For example, the benefits of a bankruptcy filing, such as the improvement of credit scores, protection of assets, tax-free debt forgiveness, and the broad ability to qualify for Bankruptcy are often surprising to our clients. When a property is purchased through a Bankruptcy proceeding, it comes with a Federal Court Order declaring the property is free and clear of any liens, encumbrances, or other interests. It provides an added layer of title protection. The order ensures that no potential debts or interests existing before settlement could ever be enforced against the… read more »