Consumers in Pennsylvania can choose from several kinds of bankruptcy when they see no other way out of debt. If they are serious about paying debt, they could qualify for Chapter 13. This type of bankruptcy allows consumers to repay debts over time, but cases fail for many reasons.
Not meeting bankruptcy requirements
All bankruptcy cases have certain requirements that consumers must meet to get their discharge from the court. The filer must submit a payment plan that treats all creditors fairly and complies with the bankruptcy code.
They must also meet deadlines filing paperwork and submit all documents to the trustee. Filers who don’t pay the filing fee or set up a payment plan for it can get the case dismissed.
Not making payments
Chapter 13 doesn’t require the selling of property, but the filer must commonly pay the full value. They usually have three to five years to repay the debt, and missing payments can get the case dismissed. Sometimes, the filer’s income can change due to job loss, or being on a tight payment schedule can exhaust them.
Not attending 341 meeting
The consumer must attend a 341 meeting of creditors, so they and the trustee can ask questions about the debt. The trustee may ask if the filer understands the payments, discuss the reasons for bankruptcy and go over the plan with them. Even if the creditors don’t show, the filer still must be present and file a certificate of completion, or the trustee can ask for dismissal.
It is possible to file bankruptcy pro se, which means representing themselves, but it raises the risk of the filer getting the case dismissed. Since bankruptcy impacts credit for several years, debtors should understand their options before filing.