What are the steps I need to take to file for bankruptcy in Pennsylvania, and how can a lawyer help me through the process?

To file for bankruptcy in Pennsylvania, there are a few necessary steps you need to take, and a lawyer can help you navigate the process. Pennsylvania has the same bankruptcy code as the rest of the country, which outlines two primary forms of bankruptcy - Chapter 7 and Chapter 13.

Chapter 7 bankruptcy involves liquidating assets to pay off debts, while Chapter 13 involves creating a payment plan to pay off debts over a more extended period. With both options, an automatic stay goes into effect, which stops creditors from contacting you to collect payment or foreclose on your property.

Step 1: Consulting with an Attorney

Consulting with a bankruptcy lawyer is essential to determine which type of bankruptcy is most suitable for your specific circumstances. Bankruptcy lawyers have specialized knowledge and can provide guidance throughout the process.

Step 2: Filing for Bankruptcy with the Court

Once you determine which type of bankruptcy is best for your situation, you'll need to file a petition with your local bankruptcy court, along with any required documentation. This documentation will include information about your assets, debts, income, and expenses.

Step 3: Participating in Counseling

Before filing for bankruptcy, you'll be required to participate in credit counseling. This can either be completed online, over the phone, or in-person. Your bankruptcy lawyer can provide you with a list of agencies approved by the court.

Step 4: Completing the Creditors Meeting

You'll have to attend a meeting with your creditors, called the Section 341 meeting, where they can ask questions about your bankruptcy filings.

Step 5: Discharge of Debts

If your bankruptcy filing is successful, your debts will either be discharged completely (Chapter 7), or you'll be put on a payment plan (Chapter 13).

How Can a Lawyer Help You Throughout the Process?

A bankruptcy lawyer can help in several ways throughout the bankruptcy process, including:

1. Providing Legal Advice: A knowledgeable bankruptcy lawyer can help you understand the bankruptcy process and provide advice on which type of bankruptcy will work best for your financial situation.
2. Preparing Necessary Paperwork: Filing for bankruptcy can require a significant amount of documentation. A bankruptcy lawyer can help you prepare paperwork correctly and ensure that you submit everything required within the required time frame.
3. Representation at Meetings: A bankruptcy lawyer will be with you throughout the process, including the Section 341 creditor's meeting that you'll have to attend.
4. Negotiating with Creditors: Bankruptcy lawyers can also help negotiate with creditors to secure better terms for any payment plans that might become part of your bankruptcy.

While bankruptcy can be a challenging process, working with an experienced bankruptcy lawyer can make it much more manageable. If you're considering bankruptcy in Pennsylvania, we recommend consulting with a lawyer who can evaluate your situation and provide guidance throughout the process.