Chapter 7 Bankruptcy in Pennsylvania
Chapter 7 is a particular section of the Bankruptcy Code that a large number of consumers use to address their outstanding debts. A Chapter 7 case usually takes six months to administer from the date of filing until the final decree is issued in the case. It is important to understand that your finances and your assets will be carefully reviewed and it is critical that you provide accurate, complete information for your attorney to properly advise you. A lot of information will be requested from you to assemble your bankruptcy documents; but it is much better to spend the time carefully preparing your documents with your attorney rather than the process taking twice as long to amend your documents.
Most of our clients demonstrate a respectable amount of income, but often times the day-to-day living expenses, such as rent or a mortgage payment, automobile payment, utility expenses, and other miscellaneous costs consume nearly all of the household income. Individuals selecting this particular form of bankruptcy can generally afford all of the necessary month expenses that they face, but the additional burden of just the minimum credit card payments, medical bills, and unexpected miscellaneous costs destroy the individual's monthly budget. Therefore, the unsecured creditors will usually receive nothing at the conclusion of the bankruptcy case.
The Bankruptcy Code does require that the individual seeking relief under Chapter 7 to demonstrate income below specific limits. The Bankruptcy Code promotes fairness and a way for the honest, but unfortunate, debtor to seek relief from his or her respective creditors. The expenses that are considered reasonable and necessary for an individual's fresh start are acceptable, but expenses for so-called luxuries are not acceptable.
In addition, individuals filing for relief under this Chapter must complete a course from an approved nonprofit budget and credit counseling agency before the bankruptcy case is filed. Then, within sixty days after the first date set for the meeting of creditors, individuals must file their certification of completion of an instructional course concerning personal financial management provided by an approved agency.