If you’re considering filing bankruptcy in Allentown, PA, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Allentown, Pennsylvania, like in most parts of the United States, involves meeting certain eligibility criteria outlined in the federal Bankruptcy Code. Bankruptcy laws are designed to provide individuals and businesses with a fresh start when they are unable to manage their debts. In Allentown, just as in the rest of the country, there are different chapters of bankruptcy, each with its own set of qualifications and requirements. Here, we’ll focus on the two most common chapters that individuals typically file for: Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy Eligibility:

1. Means Test: To qualify for Chapter 7 bankruptcy in Allentown, you must first pass the means test. This test evaluates your income and expenses to determine whether you have enough disposable income to repay your debts. If your income is below the median income for a household of your size in Pennsylvania, you generally qualify for Chapter 7. If your income exceeds the median, you may still be eligible based on your ability to pay after deducting allowed expenses.
2. Credit Counseling: You must complete a credit counseling course from an approved agency within 180 days before filing for Chapter 7 bankruptcy.
3. Previous Filings: If you’ve had a previous Chapter 7 bankruptcy discharge within the last eight years, you may not be eligible for another Chapter 7 discharge.
4. Fraudulent Activity: You cannot file for Chapter 7 bankruptcy if you’ve engaged in fraudulent or dishonest activities related to your financial affairs.

Chapter 13 Bankruptcy Eligibility:

1. Steady Income: Chapter 13 bankruptcy is often called the “wage earner’s” or “reorganization” bankruptcy because it requires a regular source of income. You must have enough income to cover your living expenses and make payments toward your debts under a court-approved repayment plan.
2. Debt Limits: There are limits on the amount of secured and unsecured debt you can have to file for Chapter 13 bankruptcy. These limits are subject to change, so it’s essential to check with a bankruptcy attorney for the most up-to-date information.
3. Credit Counseling: Like in Chapter 7, you must complete credit counseling within 180 days before filing for Chapter 13 bankruptcy.
4. Previous Filings: If you’ve previously received a discharge in a Chapter 13 bankruptcy case within the last two years or a Chapter 7 discharge within the last four years, you may have restrictions on your ability to file for Chapter 13.

Additional Considerations:

Whether you’re filing for Chapter 7 or Chapter 13 bankruptcy in Allentown, you’ll need to gather and provide comprehensive financial documentation, including information on your assets, debts, income, expenses, and recent financial transactions. This information is crucial for the bankruptcy court to assess your eligibility and develop a fair repayment plan if you’re filing for Chapter 13.

It’s essential to consult with an experienced bankruptcy attorney in Allentown or a nearby area to evaluate your specific financial situation and determine the most suitable chapter for you. Bankruptcy can have long-term financial consequences, so seeking professional guidance is highly recommended.

Furthermore, bankruptcy may not discharge certain types of debts, such as child support, alimony, most student loans, certain tax debts, and debts resulting from fraudulent activities. It’s important to understand the limitations and implications of bankruptcy before pursuing it as a debt relief option.

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Do You Need a Lawyer to File For Bankruptcy in Allentown, PA?

While it is not legally required to hire a lawyer to file for bankruptcy in Allentown, Pennsylvania, or anywhere in the United States, having legal representation is highly advisable and often in your best interest. Bankruptcy laws are complex, and the process can be challenging to navigate on your own.

Here are several reasons why you should consider hiring a lawyer when filing for bankruptcy:

1. Expertise and Experience: Bankruptcy attorneys specialize in bankruptcy law and have extensive experience handling cases similar to yours. They are well-versed in the intricacies of the bankruptcy code, local court rules, and the specific procedures followed in Allentown and the Eastern District of Pennsylvania. This expertise can help ensure that your case proceeds smoothly and that you receive the best possible outcome.
2. Legal Counsel: Bankruptcy attorneys provide valuable legal advice tailored to your unique financial situation. They can assess your eligibility for different bankruptcy chapters (Chapter 7 or Chapter 13) and help you choose the one that suits your needs. They can also advise you on strategies to protect your assets and maximize your debt relief.
3. Document Preparation and Filing: Filing for bankruptcy involves extensive paperwork, including financial disclosures, asset lists, income statements, and a detailed bankruptcy petition. A bankruptcy lawyer will assist you in accurately completing these documents and ensure that they are filed correctly and on time. This reduces the risk of errors, delays, or even case dismissals due to incomplete or inaccurate filings.
4. Representation in Court: If your bankruptcy case requires a court appearance or if creditors challenge your filing, having an attorney by your side can be invaluable. Your attorney can represent you in court proceedings, negotiations with creditors, and discussions with the bankruptcy trustee, helping protect your rights and interests.
5. Debt Discharge Maximization: A skilled bankruptcy attorney will work to maximize the discharge of your debts. They can identify exemptions and legal strategies to protect your assets and minimize the impact of the bankruptcy on your financial future. This can include negotiating with creditors to reduce the amount you owe or challenging certain debts.
6. Guidance on the Automatic Stay: When you file for bankruptcy, an automatic stay goes into effect, preventing creditors from taking further collection actions against you. However, there are exceptions and limitations to the automatic stay. A bankruptcy lawyer can explain these nuances and advise you on how to deal with specific creditor actions during the bankruptcy process.
7. Avoiding Pitfalls: Bankruptcy has long-term financial implications, and making mistakes during the process can have lasting consequences. A bankruptcy attorney can help you avoid common pitfalls, such as making improper asset transfers, incurring new debt before filing, or failing to disclose all necessary financial information.
8. Peace of Mind: Filing for bankruptcy can be emotionally challenging, and it’s often accompanied by stress and anxiety. Having a knowledgeable attorney on your side can provide peace of mind, knowing that you have a legal advocate to guide you through the process and protect your interests.
9. Post-Bankruptcy Planning: After your bankruptcy case is resolved, an attorney can provide guidance on rebuilding your credit, managing your finances, and making sound financial decisions to ensure a more stable financial future.

While it is possible to file for bankruptcy without an attorney, the potential risks and complications associated with the process make legal representation a wise investment. If you are considering bankruptcy in Allentown, PA, or any other location, consult with a qualified bankruptcy attorney who can provide personalized guidance and help you achieve the best possible outcome for your financial situation.

Cost to File Chapter 7 Bankruptcy in Allentown, PA

The cost to file for Chapter 7 bankruptcy in Allentown, Pennsylvania, includes several fees and expenses. It’s important to be aware of these costs and budget accordingly when considering bankruptcy as an option for debt relief. Here is a breakdown of the primary expenses associated with filing for Chapter 7 bankruptcy:

1. Court Filing Fee: The most significant upfront cost is the filing fee paid to the bankruptcy court. This fee covers the administrative costs of processing your bankruptcy case.
2. Credit Counseling and Financial Management Course Fees: Before filing for Chapter 7 bankruptcy, you are required to complete two credit counseling courses—one before filing and one after filing. These courses typically cost between $28 and $60 each, but fees may vary depending on the provider you choose. Some agencies offer fee waivers or reduced fees for individuals with low income.
3. Attorney Fees: While not a direct court cost, many individuals choose to hire a bankruptcy attorney to guide them through the process and ensure their case is handled correctly. Attorney fees vary depending on the complexity of your case and the attorney’s experience. On average, you can expect attorney fees for a Chapter 7 bankruptcy case in Allentown to range from $1,150 to $2,700 or more. These fees may be paid upfront or as part of a payment plan, depending on your agreement with the attorney.
4. Credit Report Fees: You may need to obtain a credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion) to ensure you have a complete list of your creditors when filing for bankruptcy. The cost of obtaining these reports can vary but is generally less than $60 for all three.
5. Miscellaneous Costs: There may be additional costs associated with your bankruptcy, such as postage, photocopying, or notary fees. These expenses are typically relatively small but should be accounted for in your budget.

The total cost to file for Chapter 7 bankruptcy in Allentown, PA, can vary based on your specific circumstances and whether you choose to hire an attorney. It’s crucial to consult with an experienced bankruptcy attorney to understand all potential expenses and explore your options for managing the costs associated with bankruptcy. Properly navigating the bankruptcy process can provide much-needed debt relief and a fresh financial start.

Cost to File Chapter 11 Bankruptcy in Allentown, PA

Filing for Chapter 11 bankruptcy in Allentown, Pennsylvania, can be a complex and costly process, as it is primarily designed for businesses and high-income individuals seeking to reorganize their financial affairs. The cost of Chapter 11 bankruptcy can vary significantly based on the complexity of the case and the legal and administrative expenses involved. Here’s a breakdown of the primary expenses associated with filing for Chapter 11 bankruptcy:

1. Court Filing Fee: The initial filing fee for Chapter 11 bankruptcy in the Eastern District of Pennsylvania, where Allentown is located, is significantly higher than that for other bankruptcy chapters. This fee may change over time, so it’s essential to check the most current fee schedule on the bankruptcy court’s website.
2. Attorney Fees: Chapter 11 bankruptcy cases are highly complex and often require extensive legal expertise. You will almost certainly need to hire an experienced bankruptcy attorney to guide you through the process. Attorney fees for Chapter 11 cases can be substantial and vary widely depending on the complexity of your financial situation and the size of your business. Expect to pay a retainer fee upfront, with additional fees based on hourly rates or a negotiated fee structure. Legal fees for a Chapter 11 case can range from several thousand dollars to tens of thousands or more.
3. Administrative Expenses: Chapter 11 cases often involve administrative costs related to running and managing the business during the bankruptcy process. These expenses can include professional fees for accountants, appraisers, and financial advisors, as well as fees for court-appointed professionals if required by the court.
4. U.S. Trustee Fees: The U.S. Trustee’s Office assesses quarterly fees based on the debtor’s disbursements in a Chapter 11 case. These fees are designed to cover the cost of overseeing and administering the bankruptcy process. The amount of these fees can vary but can be substantial for larger businesses.
5. Creditors’ Committee Expenses: In some Chapter 11 cases, a creditors’ committee may be formed to represent the interests of the creditors. The debtor is typically responsible for the reasonable expenses of the creditors’ committee, including legal and professional fees.
6. Filing of Required Documents: Chapter 11 cases involve numerous filings and documents, and there may be additional costs associated with photocopying, postage, and notary services.

Given the significant costs and complexity of Chapter 11 bankruptcy, it’s crucial to carefully consider whether it is the right option for your financial situation. Consult with an experienced bankruptcy attorney in Allentown to assess your eligibility and explore alternative debt relief options. Additionally, discuss fee structures with your attorney to understand the total costs involved in your specific case and to work out a payment plan that suits your financial capabilities.

Cost to File Chapter 13 Bankruptcy in Allentown, PA

Filing for Chapter 13 bankruptcy in Allentown, Pennsylvania, involves various costs and fees. Chapter 13 bankruptcy is designed for individuals with a regular income who want to reorganize their debts and create a manageable repayment plan. Here’s a breakdown of the primary expenses associated with filing for Chapter 13 bankruptcy:

1. Court Filing Fee: The filing fee for Chapter 13 bankruptcy in the Eastern District of Pennsylvania, where Allentown is located, is approximately $375. This fee covers the administrative costs of processing your bankruptcy case. It’s essential to check the most current fee schedule on the bankruptcy court’s website, as filing fees can change over time.
2. Attorney Fees: Most individuals who file for Chapter 13 bankruptcy hire an experienced bankruptcy attorney to guide them through the process. Attorney fees for Chapter 13 cases can vary depending on the complexity of your financial situation and the attorney’s experience. You will typically need to pay an upfront retainer fee, and the total attorney fees may range from $2,670 to $5,320 or more. Some attorneys may allow you to include their fees in your Chapter 13 repayment plan.
3. Credit Counseling and Financial Management Course Fees: Before filing for Chapter 13 bankruptcy, you are required to complete two credit counseling courses—one before filing and one after filing. These courses usually cost between $28 and $58 each, but fees may vary depending on the course provider. Some agencies offer fee waivers or reduced fees for individuals with low income.
4. Trustee’s Fees: In a Chapter 13 case, you’ll make monthly payments to a bankruptcy trustee who will distribute the funds to your creditors according to your court-approved repayment plan. The trustee is entitled to a fee, which is typically a percentage of the payments you make. The specific percentage can vary but is generally around 10% of your plan payments.
5. Miscellaneous Costs: There may be additional costs associated with your bankruptcy, such as postage, photocopying, or notary fees. These expenses are usually relatively small but should be accounted for in your budget.

Before filing for Chapter 13 bankruptcy in Allentown, PA, it’s advisable to consult with a bankruptcy attorney to understand the total costs involved in your specific case and to explore your options for managing these expenses. Properly navigating the Chapter 13 bankruptcy process can provide you with a structured plan to repay your debts and achieve financial stability.

Reliable Bankruptcy Attorneys in Allentown, PA

Below is a list of reputable bankruptcy attorneys in Allentown, PA. They can help you with both personal and business bankruptcy information.

Laputka Law Office, Charles Laputka, Esq.
1344 Hamilton St, Allentown, PA 18102, United States

Feldman Law Offices
2310 Walbert Ave Ste 103, Allentown, PA 18104, United States

Young, Marr & Associates
137 N 5th St Suite A, Allentown, PA 18102, United States

The Law Offices of Everett Cook, P.C.
1605 N Cedar Crest Blvd Suite 520, Allentown, PA 18104, United States

Kranson Marc
523 Walnut St, Allentown, PA 18101, United States

Allentown, PA Zip Codes We Proudly Serve:

18052, 18101, 18102, 18103, 18104, 18105, 18109

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