Week 2: Chapter 7 Bankruptcy in Washington, PA: A Step-by-Step Guide
Introduction: Chapter 7 bankruptcy is the most common form of personal bankruptcy in the U.S., designed to discharge most unsecured debts. If you’re considering Chapter 7 in Washington, PA, here’s what the process looks like step-by-step.
Step 1: Determine Eligibility You’ll need to pass the “means test” to file for Chapter 7, which compares your income to the median for Pennsylvania.
Step 2: Consult with a Bankruptcy Attorney An attorney will review your debts, assets, and income to confirm if Chapter 7 is right for you. Many law firms in Washington, PA offer free consultations.
Step 3: Credit Counseling Course Before filing, you must complete a credit counseling course from an approved agency.
Step 4: File Your Petition Your attorney will file your bankruptcy petition with the U.S. Bankruptcy Court for the Western District of Pennsylvania. This includes financial schedules, income info, and asset lists.
Step 5: Automatic Stay Goes Into Effect Filing triggers an automatic stay, stopping collection efforts, wage garnishments, and foreclosures.
Step 6: Trustee Meeting (341 Meeting) You’ll attend a short meeting with your trustee to answer questions about your filing. Creditors may also attend, though they usually don’t.
Step 7: Financial Management Course You must complete a second course on financial education before discharge.
Step 8: Debt Discharge Typically, 3–6 months after filing, most of your eligible debts will be wiped out.
Conclusion: Chapter 7 bankruptcy offers a fresh start, but it’s important to understand each step. A local Washington, PA bankruptcy lawyer can help ensure your filing is smooth, legal, and in your best interest.
Learn More: USCourts.gov | IRS Website
