Pennsylvania Chapter 7 Bankruptcy – How to File For Bankruptcy in Pennsylvania
If you are looking for information on how to file for chapter 7 bankruptcy in Pennsylvania, you are in the right place. We have put together a collection of articles on the topic to help you get started. These articles include topics such as Chapter 7 Bankruptcy, what it is, the process, the timeline, and more.
What is Chapter 7 Bankruptcy in Pennsylvania?
If you are considering filing for bankruptcy, you may have questions about whether you are eligible to do so, and how to proceed. The answers can depend on the state in which you are filing.
Pennsylvania is home to three federal court districts: the Eastern, Middle, and Western Districts. Although these districts are governed by the same laws, each district has unique requirements that can affect the outcome of your case. In some cases, your case could be dismissed for failure to comply with federal regulations.
A means test will determine your eligibility for filing. If you are eligible, you will have to meet the requirements of the Bankruptcy Code. These include completion of a debtor education course, paying the appropriate filing fees, and adhering to the court’s orders.Certain exemptions allow you to protect your assets, even in a bankruptcy. For instance, a motor vehicle exemption allows you to exempt $300 in equity in your car.Similarly, the wildcard exemption is a special exemption that allows you to protect up to $23,675 in home equity.
Debts You May Eliminate Under Chapter 7 In PA
In Chapter 7 bankruptcy, a debtor can erase most unsecured debts. Unsecured debts include credit card bills, personal loans, medical bills and old utility bills.
You can also wipe out some student loans, recent income taxes and child support in a chapter 7 bankruptcy. However, some tax debts are not eligible for a discharge, and your personal obligations may remain. If you are considering filing, check out a bankruptcy calculator to determine your financial situation.
Bankruptcy can also help you get a fresh start. It can stop debt collection harassment, restore utility services, and clear some liens on property. While a bankruptcy cannot eliminate all your debts, it will put them behind you and allow you to begin a new life with a clean financial slate.
In Pennsylvania, you can qualify for a chapter 7 bankruptcy by passing the means test. The means test will calculate your average monthly income compared to the median income in your area.The debts that you can erase in a chapter 7 bankruptcy in Pennsylvania include unsecured debts. This includes credit cards, medical bills, personal loans and past-due income tax.
Debts Generally Not Dischargeable in Chapter 7 Bankruptcy
There are debts that generally are not dischargeable in Chapter 7 bankruptcy in Pennsylvania. These include some student loans and tax debts. If you think you have a chance of filing for bankruptcy, you may want to consider getting help from a bankruptcy attorney. They can provide you with information about which debts you can discharge and which you can’t.
In addition, you should check with the Internal Revenue Service. They can help you arrange an installment agreement or accept a lower amount as payment. You can also ask them to extend your payment period.
Bankruptcy can also stop debt collection harassment. It can even prevent repossession of property. However, you should always consult with a lawyer before you file. Many people choose to file for chapter 7 because of their limited financial resources.Debts that are not dischargeable in Chapter 7 bankruptcy include child support and alimony. This includes divorce settlements. Also, criminal penalties can’t be cancelled in a bankruptcy.Some credit card companies will object to a bankruptcy discharge. For example, if you have recently made a large purchase using a credit card, you may have incurred a non-dischargeable debt.
Property You Can Keep
Chapter 7 bankruptcy is the fastest way to get a fresh start without losing everything. The process includes meeting with a trustee and answering questions. Once the debtor is approved by the court, the trustee begins collecting payments. In most cases, a Chapter 7 court will discharge most unsecured debts in six months.
Many people filing for bankruptcy in Pennsylvania worry about losing their property. Luckily, there are exemptions you can use to keep certain types of property. It is important to consult a lawyer for specific legal advice.
Most of the time, you are able to keep most of your property. However, there are times when your creditors will try to recover some of your property. This can include a mortgage, a second home, a boat, luxury possessions, and more.Your Pennsylvania bankruptcy attorney will be able to explain your rights to keep your property. They will also show you how to make use of limited property exemptions.There are three main categories of property you can protect in a bankruptcy. These are: real property, personal property, and money benefits.
The Chapter 7 Process
A bankruptcy filing in Pennsylvania can be an excellent way to get some financial relief. However, it is important to understand the process. You’ll need to complete the forms and attend a creditors’ meeting.The first step is to file paperwork with your local bankruptcy court. You’ll also need to attend a credit counseling class. This teaches you how to deal with debt and how to avoid filing for bankruptcy.
Before you can file, you’ll need to pass a means test. In this test, you’ll be compared to the average income of a household in Pennsylvania. If your income falls below the median, you’ll be eligible for a Chapter 7 bankruptcy.To file a Chapter 7, you’ll need to pay a $338 court filing fee. Some people may qualify for a fee waiver, though. Other expenses you’ll need to consider are a debtor education course and attorney fees.Your bankruptcy trustee will meet with you to review your documents. They will ask you a series of questions about your debts and property. Once they determine your eligibility, they will decide whether or not to keep any of your assets.
Documents
A bankruptcy case in Pennsylvania involves various forms. These include the Statement of Financial Affairs, Schedule E/F, and the Creditor Matrix. Each is important in the process.The Statement of Financial Affairs (SOFA) is an eleven-page form that prompts you to detail your finances. You will also be asked about your past addresses, debt payments, and current marital status.
Your income will be compared to the median income of similar sized families in Pennsylvania. If your income is higher than the median, you may not qualify for Chapter 7 of the Bankruptcy Code. Alternatively, you may need to complete an alternative means test.The Statement of Exemption from Presumption of Abuse is a form that you can fill out if you have a business interest, are disabled, or are a veteran. It will allow the court to determine what property you have that is exempt from liquidation.The Bankruptcy Means Test is a two-part test that calculates your average monthly income. This is the first step of the Bankruptcy Code’s means test.
Hearing
A bankruptcy hearing is a step of the bankruptcy process. It’s a chance for the trustee to decide whether you’re able to keep certain property and assets. You’ll have to tell the truth at the hearing. If you lie, you may be prosecuted. The bankruptcy trustee will also ask you questions about the documents you submitted.
During a bankruptcy hearing, you’ll need to provide a picture ID and proof of your Social Security number. You’ll have to tell the truth to the trustee. If you lie, you could be sentenced to jail.Depending on your financial situation, you may be able to file for chapter 7 bankruptcy. This allows you to liquidate some of your assets to pay off your creditors. However, you’ll need to have a plan to repay your debts within three to five years.You’ll need to complete a debtor education course before filing for bankruptcy. It can be taken online or at a local office. You must submit the course to the court within 60 days of the creditors meeting.
The Discharge and The Timeline
Chapter 7 bankruptcy is the most common form of bankruptcy in the United States. It can help eliminate your current debts and offer a fresh start. However, it is important to know exactly what is involved in the process.Before you file, it is important to have a complete picture of your financial situation. This includes a list of your assets and liabilities. Depending on your situation, you may also need to take a pre-bankruptcy credit counseling course. If you have any questions, you can seek legal advice.
A bankruptcy court will discharge your debts only if the filing procedure is followed correctly. When you file for chapter 7, you are required to cooperate with the trustee. The trustee is responsible for administering your assets and determining how much your creditors should be paid.During the bankruptcy process, you will have a “meeting with creditors” or 341 hearing. Normally, this is held within 21 to 40 days of the filing of the petition. This is an opportunity for the debtor and trustee to discuss the case and present evidence to the court. If you need assistance filing chapter 7 bankruptcy in Pennsylvania call us.
