What are the steps involved in filing for bankruptcy in Pennsylvania and what type of bankruptcy would be most appropriate for my situation?
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As a lawyer, here are the steps involved in filing for bankruptcy in Pennsylvania and what type of bankruptcy would be most appropriate for your situation:
Step 1: Determine Eligibility
Before filing for bankruptcy in Pennsylvania, you must be eligible to file. You must meet the residency requirement of residing in Pennsylvania for at least 91 days prior to filing.
Step 2: Attend Credit Counseling
Before filing for bankruptcy, you are required to attend credit counseling from an approved credit counseling agency. This counseling is designed to assist you in analyzing your financial situation and developing a realistic budget.
Step 3: File Bankruptcy Petition
To file for bankruptcy in Pennsylvania, you must file a petition in the bankruptcy court in the judicial district where you have resided for the greater part of the last 180 days. The petition includes financial documentation such as an inventory of assets, liabilities, income, and expenses.
Step 4: Attend Meeting of Creditors
After filing your bankruptcy petition, you will be required to attend a meeting of creditors where your creditors and the bankruptcy trustee will be allowed to ask you questions about your financial situation.
Step 5: Complete Credit Counseling Course
After attending the meeting of creditors, you must complete a debtor education course from a court-approved provider.
Step 6: Receive Bankruptcy Discharge
Once you complete the credit counseling course, you will receive a bankruptcy discharge which will relieve you of your obligation to pay certain types of debts.
Regarding the type of bankruptcy most appropriate for your situation, there are two common types of bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 bankruptcy
Chapter 7 bankruptcy is also known as a "straight bankruptcy". This type of bankruptcy is designed for individuals who cannot pay their debts and want to liquidate their non-exempt assets. In Chapter 7 bankruptcy, a trustee is appointed who sells the non-exempt assets and distributes the proceeds to the creditors.
Chapter 13 bankruptcy
Chapter 13 bankruptcy is also known as a "wage earner's plan". This type of bankruptcy is designed for individuals who have a regular source of income but cannot pay their debts. In Chapter 13 bankruptcy, you can develop a repayment plan to pay off your creditors over time.
The most appropriate type of bankruptcy for your situation will depend on the specific details of your financial situation. It is recommended that you consult with an experienced bankruptcy attorney who can advise you on the best course of action.
Limitations or exceptions to this advice will vary depending on the individual circumstances of the case. However, it is important to note that bankruptcy has certain limitations and does not discharge all types of debt, such as student loans, child support, and taxes.
In summary, filing for bankruptcy in Pennsylvania involves multiple steps including eligibility determination, credit counseling sessions, filing a bankruptcy petition, attending a meeting of creditors, completing a credit counseling course, and receiving a bankruptcy discharge. Chapter 7 and Chapter 13 bankruptcy are two common types of bankruptcy, with the most appropriate type depending on the individual circumstances of the case. While this advice covers general information regarding bankruptcy, consulting with an attorney is always recommended to ensure the best legal advice for your unique situation.
