To file for bankruptcy in Pennsylvania, an individual must meet certain eligibility requirements and follow specific procedures. The following are the requirements for filing for bankruptcy in Pennsylvania:
- Residency: The individual must have lived in Pennsylvania for at least 91 of the 180 days prior to filing for bankruptcy.
- Credit counseling: Before filing for bankruptcy, the individual must complete credit counseling with an approved agency within 180 days.
- Means test: The individual must pass the means test, which determines whether they have enough income to pay their debts. If their income is below the median income for a household of their size in Pennsylvania, they qualify for Chapter 7 bankruptcy, which allows for the discharge of most unsecured debts. If their income is above the median, they may still qualify for Chapter 7 if they pass a further test, or they may be required to file for Chapter 13 bankruptcy, which involves a repayment plan.
- Filing: To file for bankruptcy, the individual must submit a petition to the bankruptcy court, along with various schedules and supporting documents. They must also pay a filing fee, which varies depending on the type of bankruptcy they are filing.
It is important to note that bankruptcy does not discharge certain types of debts, such as student loans and tax debts. Moreover, filing for bankruptcy can have significant consequences, including damage to one's credit score, loss of assets, and difficulty obtaining credit in the future. Therefore, it is recommended that individuals consult with a qualified bankruptcy attorney before deciding to file for bankruptcy.
If you are considering filing for bankruptcy in Pennsylvania or have questions about the bankruptcy process, it is advised that you seek the advice of a licensed attorney who specializes in bankruptcy law. They will be able to evaluate your specific circumstances and provide tailored advice on your options and the likelihood of success.
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