What is the process for filing for bankruptcy in Pennsylvania?

The process for filing for bankruptcy in Pennsylvania requires the individual to adhere to certain regulations and procedures. The Bankruptcy Code governs bankruptcy proceedings in the state of Pennsylvania.

1. Credit Counseling: Before filing for bankruptcy, the individual must first undergo credit counseling from a government-approved agency. This credit counseling is mandatory and must be completed within 180 days before filing.
2. Filing a Bankruptcy Petition: Once the credit counseling is complete, the individual can file a bankruptcy petition with the U.S. Bankruptcy Court in Pennsylvania. The petition should include a list of all the debtor's assets and liabilities, income, expenses, and other relevant financial information.
3. Automatic Stay: Once the bankruptcy petition is filed, an automatic stay comes into effect. The automatic stay prohibits creditors from attempting to collect debts or take any other collection actions against the debtor.
4. Meeting of Creditors: During the bankruptcy proceedings, the debtor must attend a meeting of creditors. This meeting occurs about a month after the bankruptcy petition is filed. At this meeting, the debtor is required to answer questions under oath about their finances and other relevant matters.
5. Chapter 7 or Chapter 13 Bankruptcy Filing: The debtor must choose between Chapter 7 and Chapter 13 bankruptcy filings. In a Chapter 7 filing, the debtor's assets are liquidated and sold to pay off creditors, while in a Chapter 13 filing, the debtor pays off debts in installments over a period of 3-5 years.
6. Discharge of Debts: Upon the completion of bankruptcy proceedings, the debtor may receive a discharge of debts, which means they are no longer legally responsible for paying their debts. However, not all debts are dischargeable, such as taxes, child support, and student loans.

It is important to note that bankruptcy can have long-lasting effects on an individual's credit score and future financial opportunities. It is recommended to speak with a licensed attorney before pursuing bankruptcy as a solution to financial difficulties.