What are the steps I should take to file for bankruptcy in Pennsylvania?
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To file for bankruptcy in Pennsylvania, you will need to follow the following steps:
- Determine what kind of bankruptcy you will be filing for: There are two types of bankruptcy individuals usually file for, Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy is the most common and usually involves the liquidation of non-exempt assets to pay off creditors. Chapter 13 bankruptcy involves creating a repayment plan with your creditors over a period of three to five years.
- Attend credit counseling: Before filing for bankruptcy in Pennsylvania, you must attend credit counseling from an approved credit counseling agency. A certificate of completion is required to be filed with your bankruptcy application.
- Gather all necessary financial documentation: You will need to gather all your financial documentation, including your bank statements, tax returns, paycheck stubs, and debt information.
- File the necessary bankruptcy forms: You will need to file a petition for bankruptcy and other required forms with the Pennsylvania bankruptcy court. The filing fee for Chapter 7 bankruptcy is $335, and for Chapter 13 bankruptcy, it is $310. You will also need to provide the court with proof of completing credit counseling.
- Attend a meeting of creditors: Once you have filed for bankruptcy, you will need to attend a meeting of creditors where your creditors and the bankruptcy trustee can ask you questions regarding your finances.
- Complete required courses: A debtor in Pennsylvania is required to complete a personal financial management instructional course after filing for bankruptcy.
- Await the court decision: After you have completed all the necessary steps, the court will make a decision regarding your bankruptcy. If approved, you will be discharged from certain debts, and you can then begin to rebuild your credit.
It is important to note that there are limitations to filing for bankruptcy, and not all debts are dischargeable. Furthermore, bankruptcy can negatively impact your credit score, and alternative options such as debt negotiation or debt consolidation may be more suitable for certain individuals. It is recommended that you seek legal advice from a licensed attorney to determine the best course of action for your individual circumstances.
