If you are in debt, you may have explored all legal options before deciding that filing for bankruptcy is in your best interest. However, many people are hesitant to pursue this route, not because of the impact it could have on their credit, but because they are worried about having to go to court! If this reflects your concerns regarding this process, working with an experienced Montgomery County bankruptcy lawyer can help you navigate these difficult times. The following blog explores what you can expect regarding court appearances if you make the decision to file.
How Does Bankruptcy Work in PA?
When you are in unmanageable debt, you may want to consider filing for bankruptcy, as this process can be incredibly beneficial. However, it is not without consequence, as declaring bankruptcy can drastically decrease your credit score, making borrowers less likely to approve you for loans.
Generally, when you wish to file for bankruptcy, you’ll need to choose between pursuing Chapter 7 or Chapter 13. Chapter 7 bankruptcy is a liquidation process, often requiring the trustee assigned to a case to seize non-exempt property and sell it to repay creditors, while the remaining eligible debt is discharged at the conclusion of the case. However, this process tends to go quickly, with most cases ending in 6 months.
Chapter 13, on the other hand, is a reorganization plan. Essentially, this means your debts will be reorganized into one large sum, and you will make monthly payments to the trustee assigned to your case. The trustee will then distribute the funds to your creditors. This payment plan will last three to five years, depending on your circumstances, and at the conclusion of your case, the remaining eligible debts will be discharged.
Do I Need to Attend Court if I File for Bankruptcy?
When you declare bankruptcy, it’s important to understand what this process entails. You may assume that this is something you’ll need to continually appear in court for, which can be anxiety-inducing. However, you may be relieved to discover, this is rarely the case. In the vast majority of filings, you’ll only be required to attend one meeting at court, which is the 341(a) Meeting of Creditors. This is typically a short meeting in which your creditors can object or ask questions about your filing. However, in most instances, the creditors do not attend.
Other than this meeting, almost all instances in which you must appear in court can be handled by your attorney. I very rare instances, if you file for Chapter 13, and have any issues with your repayment plan, you may need to appear in court to have it approved.
If you are interested in filing for bankruptcy in Pennsylvania, it is incredibly important to discuss your legal options with an experienced attorney. At Mudrick & Zucker, P.C., our firm understands how difficult these circumstances can be. That is why we will do everything in our power to assist you through these matters so you can reap the benefits of this process. Connect with us today to learn more.
