What are the steps involved in filing for bankruptcy in Pennsylvania and how can a lawyer help me through the process?
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In Pennsylvania, the process of filing for bankruptcy involves several steps. First, the debtor must determine if they are eligible to file for bankruptcy under either Chapter 7 or Chapter 13 bankruptcy. This determination is based on a means test, which compares the debtor's income to the state's median income.
Once eligibility is established, the debtor must complete a bankruptcy petition, which includes a list of all assets, liabilities, income, and expenses. This document is filed with the bankruptcy court, along with additional forms and fees.
After the petition is filed, an automatic stay goes into effect, which prohibits creditors from collecting debts from the debtor. The court will then assign a bankruptcy trustee to oversee the case and review the petition and any objections to the discharge of debt.
The debtor must also attend a meeting of creditors, where they will be questioned by the trustee and any creditors who choose to attend. This meeting provides an opportunity for creditors to object to the discharge of debts and for the trustee to ensure that the debtor's assets are accurately reported.
If the debtor is filing for Chapter 7 bankruptcy, they may also need to complete a means test reaffirmation agreement, which reaffirms the debtor's commitment to repay certain debts. If the debtor is filing for Chapter 13 bankruptcy, they must also submit a proposed repayment plan to the court for approval.
A lawyer can help with the bankruptcy process by providing guidance and advice throughout the process, including helping the debtor determine eligibility, preparing and filing the bankruptcy petition, representing the debtor at the meeting of creditors, and assisting with any disputes that arise. A lawyer can also help ensure that the debtor's assets are accurately reported, and that the debtor is able to keep as much property as possible.
It's important to note that bankruptcy is complex and can have serious consequences. It may be beneficial to consult with a lawyer before making any decisions about filing for bankruptcy. Additionally, there may be certain limitations or exceptions to filing for bankruptcy, such as certain types of debts that may not be discharged. A lawyer can help the debtor understand these limitations and suggest further action if necessary.
