Top bankruptcy lawyer Bryan Keenan founder of Bryan P. Keenan & Associates, PC in Pittsburgh, PA explains that filing for bankruptcy often helps families more than it harms them, easing financial stress and creating a path toward stability. For more information please visit https://bryankeenanattorney.com
-- A parent may hesitate to file for bankruptcy and struggle under misguided financial assumptions out of fear of protecting their children. However, this is often misguided, according to leading Pennsylvania bankruptcy attorney Bryan P. Keenan.
For more information please visit https://bryankeenanattorney.com
Keenan, of Bryan P. Keenan & Associates, PC in Pittsburgh, PA, said bankruptcy should be strongly considered as a potential path toward short and long-term financial stability, rather than dismissed out of concern for children. In many cases, the stress of ongoing financial hardship can be more damaging to family life than the bankruptcy process itself.
“Parents are often surprised to learn that, in reality, bankruptcy improves their lives by relieving financial stress, allowing for better budgeting for necessities like food and clothing,” he explained. “The law is designed to protect basic household needs and allow families to reset financially.”
Parents can be reassured that bankruptcy will not result in children’s belongings being seized. Items such as clothing, toys, and other household goods and furnishings are protected under bankruptcy exemptions.
For parents who owe child support, a Chapter 13 filing can provide a structured way to catch up on arrears while remaining compliant with court obligations.
Education-related expenses are a major concern for families. Keenan noted that certain education savings, including 529 plans and Coverdell Education Savings Accounts, are partially protected. Contributions made at least two years before filing are typically exempt. Contributions made within two years are protected up to $5,000, while those made within 12 months of filing are generally not protected.
Keenan strongly encouraged parents to consult an experienced bankruptcy attorney to understand their exposure. Even so, children seeking federal student loans or similar would not be affected by a parent's bankruptcy. Additionally, a petition can be filed with the court to approve Parent plus loans should the need arise.
However, complications can arise with shared assets. If a child over the age of 18 uses a car that is titled in the parent’s name, that vehicle may be considered part of the bankruptcy estate. If vehicle exemptions have already been used on other cars, the trustee could potentially sell the vehicle to satisfy debts. This situation rarely occurs as there is little to no equity in most vehicles.
While children’s savings accounts are generally protected, large or unusual deposits made before filing may prompt scrutiny if they intended to shield funds from creditors.
Keenan also cautioned parents against transferring high-value assets, such as cars or property, into a child’s name before or during bankruptcy. “Such transfers raise red flags,” he said. “They may be considered fraudulent, and trustees can reverse them and recover the assets.”
Keenan concluded: “A bankruptcy attorney will be able to explore bankruptcy exemptions that allow families to keep their homes, assets, and essential belongings. By reducing financial stress, parents can focus on their children, minimize disruption, and begin rebuilding financial stability. Bankruptcy can offer a fresh start.”
Source: http://RecommendedExperts.biz
Contact Info:
Name: Bryan Keenan
Email: Send Email
Organization: Bryan P. Keenan & Associates
Address: 993 Greentree Rd #101, Pittsburgh, PA 15220,
Phone: 412-922-5116
Website: https://bryankeenanattorney.com
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