Pennsylvania Bankruptcy
Pennsylvania Bankruptcy Law
Bankruptcy Code and Exemptions...
Although Federal Bankruptcy Code and U.S. Bankruptcy Laws apply to everyone, each state has its own Bankruptcy Code and Rules of Bankruptcy Property Exemption that apply specifically in that state.
Pennsylvania Bankruptcy Law
Types of Cases...
All Pennsylvania residents, as individuals, may file bankruptcy under Chapters 7, 11, 12 or 13, depending upon unique qualification requirements under each chapter type. Chapter 11 cases are quite expensive compared to 7 and 13, and are the preferred method of reorganizing debts for wealthy individuals and corporations. Chapter 12 cases are reserved for individuals earning a regular income as a "family farmer" as defined by the Code.
Chapter 7 cases are preferred by most individuals, and are available to anyone earning less then the Pennsylvania median income. Chapter 7 discharges all debts without payment over a period of 4 months to 6 months in most cases. For this reason, most people prefer Chapter 7 over other chapters. Anyone who earns more than The Pennsylvania state statistical median must file a proposed repayment plan under Chapter 13.
Chapter 13 plans last between 3 to 5 years, depending on the level of income of the debtor. These plans require monthly payments to a trustee for collection and disbursement to approved creditors. Priority debts are paid first, and general unsecured creditors are paid last. At the end of the plan term, all debts are discharged and require no further payment.
Changes to Pennsylvania Bankruptcy Exemptions
Failure to file Pennsylvania bankruptcy exemptions is not a fatal mistake. If property items are omitted, immediately file an amended claim form h and re-designate all new property. Also, if the property was omitted from both the list of all property owned and schedule h, the court may inquire about the underlying reason for the omission. The failure to include Pennsylvania bankruptcy exemption designations is relatively minor compared to potential problems created by the omission of property altogether because of the full disclosure requirements.
In the event the court finds that property omission was intentional and occurred with the intent to defraud creditors, judges may impose any of numerous methods of sanctions and punishment.
Pennsylvania Rules of Construction...
As provided by Rule 4003, Fed. rules Bk. Proc., a debtor has 30 days to supplement bankruptcy claim form H after the expiration of the original time Also, for cause, a judge may extend the time limit. Ordinarily, judges remain impartial in the administration of cases, yet Federal judges are known for strict compliance with the rule of law. Pennsylvania bankruptcy judges tend to fair, strict, and impartial, and would probably allow an extension if the omission occurred as a result of innocent error.
Pre-Bankruptcy Planning and Preparation
Pre-bankruptcy planning is a delicate topic with many transactions prohibited, but with the assistance of a progressive bankruptcy attorney, other allowable exemptions may be identified.
In practice, most people who file for bankruptcy will actually improve their credit rating within 18 months or less. In fact, in a chapter 13 filing, credit will begin to improve once late payment reports stop, and secured loans and credit lines begin reflecting timely payments.
Overall, filing for bankruptcy can, for many Americans in many different circumstances, be an important and integral step toward financial recovery and new found fiscal stability. Ultimately, bankruptcy creates opportunities and improves net worth, so long as the decision to file was made wisely.
To learn more about Pennsylvania State Bankruptcy Exemptions, simply go to our U.S. Bankruptcy Exemptions page.
In most states you can legally protect your personal residence in a bankruptcy. The interesting thing is homeowners are treated differently from state to state.
Learn more about the Homestead Act and how it affects you.
Pennsylvania Bankruptcy Code
All Pennsylvania Bankruptcy cases are governed by Title 11 of the United States Bankruptcy Code, by U.S. Bankruptcy Rules, and by local Pennsylvania State Bankruptcy Rules promulgated by Pennsylvania court.
The US bankruptcy court websites generally have links to both, the Federal US Bankruptcy Rules and specific Pennsylvania Bankruptcy Code. Clerks in the bankruptcy courts will not give debtors, or even attorneys for debtors, legal advice, including advice about which bankruptcy rules apply to a given case.
Locate a US Bankruptcy Court in your federal judicial district.
Since US Bankruptcy Code and Pennsylvania Bankruptcy Rules are very technical, and since the case load in the US Bankruptcy Courts makes judges very unforgiving of mistakes or missed deadlines, it's highly recommended to seek the advice of an experienced Pennsylvania Bankruptcy Attorney and Certified Credit Counsellor.
The most recent Changes to the Bankruptcy Code and Bankruptcy Rules came about on April 20, 2005 as President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act. This new Bankruptcy Law came into effect October 17, 2005.
Learn more about the 25 Most Recent Changes to Personal Bankruptcy Law and how they affect you.
