Bankruptcy in Erie, PA

Are you contemplating bankruptcy or hiring a bankruptcy attorney in Erie, Pennsylvania? Are you tired of creditors calling for payments you can’t make? Maybe looking for a way to get out of debt and have you exhausted all other options? Then bankruptcy might be the solution you seek. It is a legal option that can erase a portion or all of your debts.

Types of Bankruptcy in Erie, Pennsylvania

Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In Erie, PA to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. Consumers who find themselves falling behind in debt can file either Chapter 7, 11 or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.

Erie bankruptcies are under the jurisdiction of the U.S. Bankruptcy Court for the Western District of Pennsylvania. The court has locations in Erie, Pittsburgh, and Johnstown.

Chapter 7 Bankruptcy

Many people find Chapter 7 to be the right solution for their circumstances because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Erie  who can help you to decide if a liquidation plan is right for you.

Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances that has resulted in an inability to manage their debts. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity against you like foreclosures and garnishments, to stop temporarily. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.

Before filing a Chapter 7 bankruptcy in Erie, you must pass a Means Test. In short, your family’s income must be lower than the median income of Pennsylvania families of the same size. When you file a bankruptcy petition in Erie, an automatic stay prevents your creditors from continuing their attempts to collect your debt. However, under Local Bankruptcy Rules, a creditor can request an exemption from the court to continue collecting the debt.

Bankruptcy law also requires that you undergo credit counseling before you file. Fortunately, this can typically be completed online. The Department of Justice maintains a list of approved providers for the Western District of Pennsylvania.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan, so they are easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts moving forward.

Erie Chapter 11 bankruptcies are generally more complicated than cases filed under the other chapters. Federal law requires the debtor to submit a reorganization plan, along with statements of income, assets, liabilities, and expenses. The primary creditors then vote on whether to accept the plan. Furthermore, the Western District of Pennsylvania has additional rules for complex Chapter 11 cases. The hearings are typically expedited and there are very specific notice requirements.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Erie, PA after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to a five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also give you the opportunity to have some or most of your debts discharged.

Some of the filing requirements for a Chapter 13 bankruptcy in Erie include:

  • File the petition and pay the $313 fee
  • Certificate of Credit Counseling
  • Creditor list
  • Schedule of income and expenses
  • Summary of assets and liabilities
  • Chapter 13 plan using the local form

The Bankruptcy Process in Erie, Pennsylvania

There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact on your situation and help you get back on track.

In Erie to begin the filing process, gather all of your financial records, including monthly expenses, debts, assets, and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in your petition being denied.

When you file for bankruptcy in Erie, you can choose whether to use the federal or state exemptions. However, you cannot mix and match items from both lists. The U.S. Bankruptcy Code includes a homestead exemption, vehicle exemption, and a wildcard exemption of $1,325. Conversely, Pennsylvania law does not include specific exemptions for your home or vehicle, and the wildcard exemption is only $300.

Pennsylvania, unfortunately, has some of the most limited exemptions in the country. As a result, most filers choose to use the federal list. However, it is important to consult an Erie attorney to determine which exemption list will work best for your case.

At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.

Work With an Experienced Erie, Pennsylvania Lawyer

Hiring a local bankruptcy lawyer in Erie during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts can be discharged or can’t be discharged. An experienced Pennsylvania attorney can also offer you guidance to improve the outcome of your case.

Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in Erie can guide you through the entire bankruptcy process. We can even help you connect with an attorney across Pennsylvania state lines.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!

Do you have a different legal concern that requires the help of a lawyer? We have a network of attorneys for any area of law you need in Erie, PA.

Auto Accident

Business Law

Child Birth Injury

Child Custody

Child Support

Consumer Law

Copyright Law

Criminal Defense

Debt Collector Harassment

Divorce Law

DUI Law

Employment Law

Eviction Law

Foreclosure Defense

Identity Theft

Immigration Law

Insurance Claims

Lemon Law

Medical Malpractice

Nursing Home Abuse

Patent Law

Personal Injury Law

Power of Attorney

Probate Law

Property Disputes

Real Estate Law

Social Security Disability

Tax Law

Traffic Law

Vaccination Injury

Workers Compensation

Workplace Discrimination

Wrongful Termination

Wills and Trusts

How It All Works

Call us or answer the questions on this site. Your category, location, and additional information will help us connect you to a legal professional and we’ll send you the results instantly.

Which Areas of Law?

We have attorneys in over 20 legal categories to choose from.

How Much Does This Cost?

We don’t charge you to be connected. Some legal categories require upfront fees while others do not. The legal professional will determine this with you before you commit to anything.