To file for bankruptcy in Pennsylvania, an individual or business must follow these steps:
- Complete credit counseling: Before filing for bankruptcy, the debtor must complete credit counseling from a government-approved agency within 180 days prior to filing.
- Prepare and submit bankruptcy forms: The debtor must gather all financial information, including income, debt, assets, and expenses, and complete bankruptcy forms, including the Petition, Schedules, and Statement of Financial Affairs. These forms must be filed with the court and a filing fee must be paid.
- Attend a meeting of creditors: A meeting of creditors, also known as a 341 meeting, is scheduled approximately 20 - 40 days after filing. The debtor is required to attend the meeting and answer questions about their financial affairs, under oath, to the trustee and any creditors who attend.
- Complete a debtor education course: Within 60 days of the meeting of creditors, the debtor must complete a debtor education course from a government-approved agency.
- Attend a bankruptcy discharge hearing: The bankruptcy discharge hearing is scheduled approximately 60 - 90 days after the meeting of creditors. If the court approves the bankruptcy discharge, the debtor will be relieved of most unsecured debts, including credit card debt, medical bills, and personal loans.
It is important to note that there are certain limitations and exceptions to the bankruptcy process. For example, there are income limits for filing a Chapter 7 bankruptcy, and some debts are not dischargeable, such as taxes, student loans, and child support. Additionally, filing for bankruptcy may have long-term effects on credit and financial options.
It is recommended that individuals and businesses seeking to file for bankruptcy consult with a licensed attorney who can provide tailored advice based on their specific circumstances.
By
