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About Bankruptcy Law in Scranton, United States

Bankruptcy law in Scranton, Pennsylvania, is designed to help individuals and businesses overwhelmed by debt. The main goal of declaring bankruptcy is to provide a fresh financial start for the debtor. This is achieved through the liquidation of assets in Chapter 7 bankruptcy or the development of a court-approved repayment plan in Chapter 13 bankruptcy. Scranton residents can file for bankruptcy protection through the United States Bankruptcy Court for the Middle District of Pennsylvania, which serves the region. With the benefit of federal bankruptcy laws, individuals in Scranton can address debt issues and work towards regaining fiscal stability.

Why You May Need a Lawyer

Engaging a lawyer is particularly beneficial when facing the complexities of bankruptcy due to several reasons. First, a lawyer can provide expert guidance on whether bankruptcy is the right option for your specific situation or if alternative debt relief measures could be more advantageous. Second, legal assistance is crucial in navigating the procedural requirements and documentation involved in filing for bankruptcy. A lawyer can help ensure compliance with all legal processes, minimizing potential errors that could lead to a case dismissal. Moreover, if creditors contest the bankruptcy filing or if there are disputes regarding asset exemptions, a lawyer can represent and advocate on your behalf.

Local Laws Overview

Bankruptcy proceedings in Scranton, as part of Pennsylvania, are governed by federal laws outlined in the United States Bankruptcy Code, but specific aspects of bankruptcy, such as exemptions and deadlines, can have state-specific nuances. In Pennsylvania, for instance, debtors can choose between federal and state exemptions depending on which set best protects their assets. Pennsylvania-specific protections include certain retirement accounts, equity in a primary residence, and specific personal property. Additionally, bankruptcy laws require that borrowers participate in credit counseling from approved agencies before filing. Understanding these localities, with the aid of a lawyer, can better prepare individuals when filing for bankruptcy in Scranton.

Frequently Asked Questions

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 bankruptcy involves liquidating non-exempt assets to pay creditors and discharge unsecured debts. Chapter 13 bankruptcy, on the other hand, involves reorganizing debts into a manageable repayment plan spanning three to five years.

Will bankruptcy eliminate all my debts?

Bankruptcy may discharge many unsecured debts, but certain obligations like student loans, child support, and some taxes may not be discharged.

Can I keep my car if I file for bankruptcy?

In both Chapter 7 and Chapter 13 bankruptcy, filers may be able to retain their vehicles depending on the equity in the car and the applicable exemption limits. Filing under Chapter 13 might offer more flexibility in managing secured debts like car loans.

How does bankruptcy affect my credit score?

Bankruptcy can significantly impact your credit score, often lowering it substantially. The impact diminishes over time, and individuals can take steps post-bankruptcy to rebuild credit.

How long does bankruptcy stay on my credit report?

A Chapter 7 bankruptcy can remain on your credit report for up to ten years, while a Chapter 13 bankruptcy can stay for up to seven years after completion of the repayment plan.

Who oversees bankruptcy cases in Scranton?

Bankruptcy cases in Scranton are managed by the United States Bankruptcy Court for the Middle District of Pennsylvania. A trustee is appointed to oversee and administer each individual case.

Is attending a creditor meeting necessary?

Yes, in most cases, the debtor is required to attend a meeting of creditors (also known as a 341 meeting) where creditors can ask questions about a debtor’s financial situation and bankruptcy filings.

Can filing for bankruptcy stop foreclosure?

Filing for bankruptcy introduces an automatic stay, which temporarily halts foreclosure actions. This can provide a window to negotiate with lenders or reorganize debts under Chapter 13 to save the home.

Are there fees associated with filing for bankruptcy?

Yes, filing for bankruptcy involves court fees and, if you hire one, attorney fees. Fee waivers or installment plans might be available for those who qualify.

Can I file for bankruptcy more than once?

Yes, but there are time restrictions between filings. For example, if you've received a discharge under Chapter 7, you must wait eight years before you can receive a subsequent discharge under Chapter 7.

Additional Resources

Individuals considering bankruptcy in Scranton can seek assistance from local resources such as the Pennsylvania Bar Association or local legal aid societies. Additionally, the U.S. Trustee Program provides a list of approved credit counseling and debtor education courses in Scranton.

Next Steps

If you are facing serious debt issues and considering bankruptcy, it is advisable to consult with a qualified bankruptcy attorney who can assess your financial situation and explore your options. Begin by gathering your financial records, including debt amounts, income, assets, and expenses. Schedule consultations to discuss potential bankruptcy strategies and see what legal representation aligns with your needs. Legal experts can guide you through the preparation of necessary documentation and ensure that you are ready to proceed with filing once all prerequisites are met.