 |
 |
 |
 |
|---|
 |
 |
 |
|---|---|---|
 |
 |
 |
 |
 |
 |
|---|---|---|
 |
 |
 |
 |
Filing Bankruptcy in PA: A Comprehensive Guide to Navigating Your Options
Filing for bankruptcy in Pennsylvania can be a complex process, but understanding the steps involved can help alleviate some of the stress. This guide will walk you through the different types of bankruptcy available, common mistakes to avoid, and some frequently asked questions.
Understanding Bankruptcy Types
In Pennsylvania, individuals generally file for either Chapter 7 or Chapter 13 bankruptcy. Each has its own advantages and requirements.
Chapter 7 Bankruptcy
Chapter 7 is often referred to as 'liquidation bankruptcy.' This process involves the sale of a debtor's non-exempt assets to pay off creditors. It's a suitable option for those with limited income and substantial unsecured debt. For more details on Chapter 7 bankruptcy, you might want to read about chapter 7 bankruptcy in Atlanta for comparison.
Chapter 13 Bankruptcy
Chapter 13 is known as 'reorganization bankruptcy.' It allows individuals to create a repayment plan to pay off their debts over a period of three to five years. This option is ideal for those who have a regular income and wish to keep their assets.
Common Mistakes to Avoid
- Not Consulting a Professional: Many people attempt to file without professional help, which can lead to errors. Understanding chapter 7 bankruptcy attorney fees can help in budgeting for legal assistance.
- Failing to Disclose All Assets: It's crucial to provide a complete list of all assets and liabilities to avoid potential legal issues.
- Choosing the Wrong Bankruptcy Type: Assess your financial situation carefully to select the right type of bankruptcy for your needs.
FAQs About Filing Bankruptcy in PA
What are the eligibility requirements for Chapter 7 bankruptcy in Pennsylvania?
To qualify for Chapter 7 bankruptcy, you must pass the means test, which compares your income to the median income in Pennsylvania. If your income is below the median, you are typically eligible.
How long does the bankruptcy process take?
The Chapter 7 process usually takes about four to six months from filing to discharge. Chapter 13 bankruptcy takes three to five years to complete, as it involves a repayment plan.
Can I keep my home if I file for bankruptcy?
Under Chapter 13, you can keep your home as long as you continue to make payments under your repayment plan. Chapter 7 may require you to surrender your home unless you can exempt it.
By understanding these aspects of filing for bankruptcy in Pennsylvania, you can make more informed decisions and avoid common pitfalls. Always consider consulting with a professional to guide you through this process.
It is recommended that a person considering bankruptcy consult with an attorney prior to filing a case. Your local bar association may have information on ...
You can file for bankruptcy in Pennsylvania after living there for over 180 days. However, you must live in Pennsylvania for at least 730 days before filing.
To actually file, either you or your attorney, will need to file a two-page petition and several other forms at your Pennsylvania district bankruptcy court.
