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Chapter 13 Bankruptcy FAQS in Pennsylvania

People choose to file for bankruptcy for many reasons. Whether an unexpected emergency expense creates a hole of debt the filer can’t escape on their own, or they fall behind on payments for assets they don’t want to lose, Chapter 13 Bankruptcy in Pennsylvania can help people in debt in ways that Chapter 7 Bankruptcy and other non-bankruptcy procedures can’t.

Chapter 13 is a 3 or 5 year reorganization payment plan.  Whereas, debts are automatically discharged without repayment in a Chapter 7 . Plus, Chapter 7 Bankruptcy has strict income and asset exemption limits that don’t apply in a Chapter 13. Although, the filing fee is lower in a Chapter 13, ($310) but legal representation fees are typically much higher than in a Chapter 7. Additionally, Chapter 13 allows the possibility of stripping junior mortgages from your home that Chapter 7 doesn’t provide.

CHAPTER 13 FAQs

ANSWER:

Chapter 13 is a form of bankruptcy that allows you to restructure your debt over the course of 3-5 years. Plus, Chapter 13 allows you to catch up on past-due payments like your mortgage and car loan while being protected from repossession and foreclosure. Also, remaining unsecured non-priority debts (except student loans) will be discharged at the end of your payment plan.

ANSWER:

The length of your payment plan will depend on your income level. Plus, filers whose family income is below the state median will have a 3 year payment plan. Therefore, if they make more than the state median, the plan will be 5 years.

ANSWER:

Yes, Chapter 13 was designed to help you keep your vehicle. If you are behind on your payments, your lender is likely threatening you with repossession. Once your Chapter 13 petition is filed, your vehicle will be protected from repossession by the automatic stay of protection. The past-due balance, along with the rest of the balance of your vehicle loan, will be payable monthly over the life of your plan.

ANSWER:

More than likely, your mortgage will be included in your Chapter 13 payment plan. Additionally, this is referred to as a conduit mortgage payment in a Ch 13 payment plan.  In a Chapter 13 it gets kinda tricky.  You should seek the assistance of an experienced bankruptcy attorney.

ANSWER:

If you owe back child support, this amount will be worked into your plan, a portion of your back support being paid monthly. Plus, the entire balance must be worked into your plan and will not be discharged at the end of your plan.

ANSWER:

To be eligible to file bankruptcy in Arizona, you must have resided in the state for the better part of the last six months. If you are unsure about which state to file in, you should discuss your living history with a bankruptcy attorney.

ANSWER:

You can always singly file a bankruptcy even when married, but it is much trickier in a Chapter 13 than filing a Chapter 7. Since you will probably pay off financed community property assets in your payment plan, most couples choose to file jointly.
Another issue is that your payments will be calculated using both spouses’ income.
Additionally, you will not be left with much disposable income. Unless your partner is okay with almost all spare income going towards your bankruptcy and they don’t have any separate debts on their own, Chapter 13 bankruptcy is usually best for the couple to file together. You should consult an attorney if you want to file a single Chapter 13 or if you are considering filing both a Chapter 13 Bankruptcy and a divorce.

ANSWER:

The filing fee for a P Pennsylvania Chapter 13 Bankruptcy is $310. Your Pennsylvania Bankruptcy attorney’s fees will be considerably higher, but can be worked into your payment plan. Your Pennsylvania debt attorney will likely require some payment up front. While bankruptcy attorney representation isn’t cheap, less than 1% of pro se Chapter 13 bankruptcies are successfully discharged.

ANSWER:

Both Chapter 7 and Chapter 13 filers will need to attend a 341 Meeting of Creditors. Your creditors may appear, and they and your trustee will ask you questions about your petition. The hearing is typically relatively short and simple.

Chapter 13 filers will also have to attend a plan confirmation hearing. This hearing is exactly what it sounds like- a hearing for the court to confirm that your plan pays off enough of your debts and is feasible for you to complete. You need to make your first Chapter 13 payment within 30 days of filing, so you may need to make a payment before your confirmation hearing.  Your Chapter 13 BK Lawyer will attend the hearing with you.

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Pennsylvania Chapter 13 Bankruptcy Terms – FAQs

ANSWER:

An experienced Pennsylvania Chapter 13 Bankruptcy attorney appointed by the court to oversee your case. You will make your plan payments to the trustee who will distribute them amongst your creditors.

ANSWER:

The protection bankruptcy provides that prevents your creditors from collecting on your debts through garnishment, repossession, and foreclosure. The stay is active until your case is discharged or dismissed. Your creditors may file a Motion for Relief from the Automatic Stay to be able to proceed with collection in spite of the stay.  Contact a Pennsylvania bankruptcy attorney today.

ANSWER:

The second method of qualifying for Chapter 7 Bankruptcy. Those who make more than the state median income level may still be eligible for Chapter 7 if they can prove that after mandatory expenses are deducted from their income, they don’t have enough disposable income at the end of the month to pay their debts. If a filer is unable to prove they make less than the state median or that they pass a means test, they are left with the option to file Ch 13.

ANSWER:

The 3-5 year reorganization of your debts, payable monthly to your trustee. You must complete your payment plan to be eligible for a discharge (except in rare exceptional circumstances).

ANSWER:

The 3-5 year reorganization of your debts, payable monthly to your trustee. You must complete your payment plan to be eligible for a discharge (except in rare exceptional circumstances).

ANSWER:

The portion of your payment plan that is comprised of past-due mortgage payments. Conduit payments are spread over 3-5 years, making it much more realistic for Chapter 13 filers to catch up before the bank forecloses on their home.  Plus, it is possible to strip 2nd liens in a Ch 13 BK filing.

ANSWER:

The successful completion of your payment plan. Most debts will be considered fully satisfied on discharge. Some debts that have remaining balances will be wiped clean.
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Camp Hill PA 17011

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717 724-7503

2204 Market Street, #2
Camp Hill PA 17011