What steps do I need to take to file for bankruptcy in Pennsylvania and what are my options for choosing the type of bankruptcy to file?
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In order to file for bankruptcy in Pennsylvania, you will need to take several steps. The first step is to complete credit counseling within 180 days before filing. You can do this through an agency approved by the U.S. Trustee Program. After completing credit counseling, you will need to gather all of your financial information, including your debts, assets, and income.
Once you have this information, you will need to complete and file a bankruptcy petition and a number of other documents with the bankruptcy court. These documents will include schedules of your assets and liabilities, a statement of your financial affairs, and statements of your income and expenses. You will also need to provide the court with proof of income, such as pay stubs or tax returns.
After you file your bankruptcy petition, an automatic stay will go into effect, which will prevent your creditors from attempting to collect from you outside of the bankruptcy process. At this point, you will need to choose the type of bankruptcy that you want to file. The two options for individuals are Chapter 7 and Chapter 13.
Chapter 7 bankruptcy involves liquidating your nonexempt assets in order to pay off your debts. This can allow you to discharge most of your unsecured debts, such as credit card debt and medical bills. However, certain debts cannot be discharged through Chapter 7, such as most tax debts, student loans, and child support obligations.
Chapter 13 bankruptcy involves creating a repayment plan that lasts for three to five years. With this type of bankruptcy, you may be able to keep your assets, but you will need to make regular payments to your creditors. Once you have completed your repayment plan, any remaining unsecured debt may be discharged.
The type of bankruptcy that you should choose will depend on your individual circumstances. If you have a large amount of nonexempt assets and significant unsecured debt, Chapter 7 may be a better option. On the other hand, if you have assets that you want to keep and a regular income, Chapter 13 may be a better choice.
It is important to note that there are certain limitations and exceptions to bankruptcy, depending on your specific situation. For example, if you have filed for bankruptcy in the past, you may not be eligible to file again for a certain period of time. Additionally, there are income limitations for Chapter 7 bankruptcy filings.
If you are considering filing for bankruptcy in Pennsylvania, it is highly recommended that you speak with a qualified bankruptcy attorney. They can guide you through the bankruptcy process, help you choose the best type of bankruptcy for your situation, and provide advice on any potential limitations or exceptions.
