How Fast Can You File for Bankruptcy in Pennsylvania?
The timeframe of filing for bankruptcy, going through bankruptcy proceedings, and exiting bankruptcy is different for each debtor in Pennsylvania.
Preparing a bankruptcy petition can take a few weeks. This is because debtors must gather considerable information about their finances and outstanding debts. After you file, an automatic stay will take effect immediately, provided you are eligible to receive one. Debtors will have to choose liquidation exemptions when they declare bankruptcy. If you file for Chapter 13, you will have to design a repayment plan in the first two weeks of filing in Pennsylvania. How fast debtors exit bankruptcy will depend on a few factors. That said, debt can be addressed within a matter of a few short months or years when debtors file for bankruptcy in Pennsylvania.
For a free case review from our Pennsylvania bankruptcy lawyers, call Young, Marr, Mallis & Associates today at 215-639-5297.
How Fast Can You File a Bankruptcy Petition in Pennsylvania?
You can file for bankruptcy relatively quickly after deciding to gain control over your finances in Pennsylvania. That said, once you make that decision, you will need to prepare the necessary forms to file with the court.
Once you choose to declare bankruptcy, the process is pretty quick. Our Bucks County bankruptcy lawyers can help you file a petition with the court as soon as possible. Preparing the initial petition will take some time, as it must include your financial information, such as your assets, monthly income, and expenses. You must also include estimates of your debt and a list of creditors.
In the bankruptcy petition, you will also note the type of bankruptcy you plan on filing for. In Pennsylvania, most debtors will file petitions for either Chapter 7 or Chapter 13, depending on their financial status. Our attorneys will put your income to a means test to determine if you qualify for non-liquidation bankruptcy in Pennsylvania. Once you have gathered the necessary information to include on your petition, you can declare bankruptcy in Pennsylvania.
How Fast Will an Automatic Stay Go into Effect After Filing for Bankruptcy in Pennsylvania?
One of the perks of filing for bankruptcy in Pennsylvania is an automatic stay. In most cases, this will go into effect immediately after you file your bankruptcy petition.
Most debtors are eligible to benefit from an automatic stay once they declare bankruptcy. This essentially pauses all debt collection efforts from creditors for the duration of bankruptcy proceedings. An automatic stay will take effect right away.
Debtors who have filed for bankruptcy multiple times in a short period might not get to benefit from an automatic stay in Pennsylvania.
How Fast Do You Have to Choose Bankruptcy Exemptions in Pennsylvania?
There are certain forms that debtors have to complete and submit to the court when filing for bankruptcy in Pennsylvania. This includes forms for liquidation exemptions, which should be filed alongside the initial bankruptcy petition.
There are many forms required to file for bankruptcy, which can be filed simultaneously to make the process smoother for debtors in Pennsylvania. An important form to be aware of is Schedule C, which allows debtors to note the liquidation exemptions they’d like to use during Chapter 7 bankruptcy. Debtors in Pennsylvania can use federal exemptions over state exemptions, which may enable them to protect important assets from liquidation, like their vehicles or homes.
If you do not submit specific liquidation exemptions when you file for bankruptcy, the property you wish to protect might be vulnerable to liquidation. Because of this, it is important to identify which exemptions you wish to use when you initially file for bankruptcy in Pennsylvania.
How Fast Must You Make a Repayment Plan for Bankruptcy in Pennsylvania?
Debtors that file Chapter 13 bankruptcy must design a repayment plan that allows them to pay back creditors. Creating a repayment plan might take some time, depending on the size of your debt and the number of creditors you have.
After assessing your debt, expenses, and income, our lawyers will submit a repayment plan to the court. The goal of this plan is to consolidate your debt under the same interest rate so that you can meet payments over a period of time. If a repayment plan is not agreeable to a creditor, they might contest it. Because of this, it might take several weeks to design a repayment plan that meets everyone’s needs in Pennsylvania.
Typically, debtors must submit a proposed repayment plan within a couple of weeks of filing for bankruptcy. Then, a judge will assess it to determine whether or not it is appropriate. In some cases, the court will grant an extension, allowing a debtor more time to design a repayment plan for Chapter 13 bankruptcy in Pennsylvania.
How Fast Will You Exit Bankruptcy in Pennsylvania?
The speed with which you can exit bankruptcy will largely depend on the type of bankruptcy you file for. Chapter 7 is generally shorter, while Chapter 13 is longer in Pennsylvania.
The average length of Chapter 7 bankruptcy in Pennsylvania is four to six months. This means that you can fully address your debt less than a year after you file the initial petition. During this time, the necessary assets will be liquidated to repay creditors. Dischargeable debts will also be erased, leaving you with no responsibility to repay them.
Chapter 13 bankruptcy typically takes longer, as debtors have to make payments to repay creditors instead of liquidating their assets. For this reason, it may be between three and five years before you exit Chapter 13 bankruptcy in Pennsylvania. Despite the fact that Chapter 13 takes longer, it is preferable to many debtors who want to retain their assets during bankruptcy. Regardless of the type of bankruptcy you declare, once you exit it, you will no longer have any debt in Pennsylvania, allowing you to move forward and solidify your financial security.
You Can File for Bankruptcy in Pennsylvania Now
Call the Philadelphia bankruptcy lawyers at Young, Marr, Mallis & Associates at 215-639-5297 to schedule a free evaluation of your case.