If you are planning on filing for bankruptcy, there are important steps you need to take before doing so. Here are some things to know about the basic filing process for bankruptcy in Pennsylvania and some of your options.
The Basic Filing Process
Bankruptcy is governed by federal law which means the filing process in Pennsylvania is similar to other states. Each state, however, has its exceptions. In Pennsylvania, you can go through the state exemption system or the federal bankruptcy system. It must be one or the other, you cannot use both. Filing in the right Pennsylvania bankruptcy court is also important because there are restrictions based on where you live or maintain the property.
Chapter 7 or 13
Determining how your income level relates to the rest of Pennsylvania is crucial. If your income is below the median, you are eligible to file for Chapter 7 which allows you to pay your debts over the course of five years. Chapter 13 on the other hand, requires repayment over three years.
Knowing the basic filing process and figuring out whether to file for Chapter 7 or 13 bankruptcy are two important steps to take when filing for bankruptcy. To learn more about what to know about filing for bankruptcy in Pennsylvania, call The Law Offices of Paul McElrath.