Legal Question in Bankruptcy in Pennsylvania

farm bankruptcy, choosing an attorney

Is it necessary to acquire an attorney that ''specializes'' in bankruptcy law or will any respected law firm be competent and knowledgeable in advising us in making these tough decisions?

Also, I've read that federal student loans are not generally dischargeable but I could find nothing regarding federal loans such as Farm Service Agency loans. We were unable to continue milking our dairy herd due to financial hardship, but after selling the herd we were left with a large, unmanageable debt with FSA. We have been denied primary loan servicing due to the fact that our farm is solvent and our inability to come up with a feasible re-payment plan. We don't want to have to sell the farm, but they make it sound as though there are no other choices.

I also wanted to know if it is possible to exempt a creditor from a bankruptcy claim. We would like to try to continue making payments to our bank and don't want to injure our relationship with them. Other than this current FSA problem, our credit is excellent and our additional debt is minimal


Asked on 8/05/03, 12:40 pm

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: farm bankruptcy, choosing an attorney

It is indeed important that you obtain an attorney who practices bankruptcy on a regular basis. The bankruptcy code, as much as any set of laws, is complicated. Moreover, the cases interpreting that code provide even greater understanding but can also be very confusing.

Only educational loans involving the federal government are non dischargeable. Thus, the stated debt should be discharged.

You can omit a creditor from your bankruptcy. However, I generally do not advise it as you could become delinquent in the future and the creditor will retain all its rights. An exception to that is a Chapter 7 no asset case. In that event, whether or not the creditor was listed, the debt is discharged.

I trust this has been helpful, but feel free to cal or E-mail on a free initial basis.

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Answered on 8/05/03, 3:14 pm


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