What are the steps necessary to file for bankruptcy in Pennsylvania and how can a lawyer assist with the process?
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To file for bankruptcy in Pennsylvania, an individual must follow certain steps:
- Complete Credit Counseling: Before filing for bankruptcy, individuals must receive credit counseling from an approved agency within the 180 days prior to filing. A certificate of completion must be filed with the bankruptcy petition.
- Gather Financial Information: Individuals must gather all financial information, including outstanding debts, income, expenses, and assets, in order to accurately complete the necessary forms.
- File Bankruptcy Petition: Individuals must file a bankruptcy petition with the United States Bankruptcy Court for the district in which they reside. The filing fee for a Chapter 7 bankruptcy is currently $335, while Chapter 13 requires a $310 filing fee.
- Attend Meeting of Creditors: Approximately one month after the petition is filed, individuals must attend a meeting of creditors with their assigned trustee. Creditors may attend and ask questions about the individual's financial situation.
- Creditors File Proof of Claim: Creditors have a deadline to file a proof of claim with the bankruptcy court, which details the amount of debt owed and supporting documentation.
- Complete any Required Courses: Individuals must also complete a debtor education course within 60 days of the meeting of creditors.
An experienced bankruptcy lawyer can assist with the process in several ways. An attorney can review financial information and determine which type of bankruptcy is most appropriate for the individual, whether that be Chapter 7 or Chapter 13. In addition, an attorney can assist with the preparation and filing of the necessary forms, as well as any potential objections from creditors.
It is important to note that bankruptcy does not eliminate all types of debt, such as student loans or certain tax debts. Additionally, there are certain restrictions on filing for bankruptcy again within a certain time period.
If an individual is considering bankruptcy, it is important to seek the advice of a licensed attorney to fully understand the process and potential implications.
