Many people in Pennsylvania who are considering bankruptcy may want to file for Chapter 7, as most of their debts can be discharged when the action is granted by the court. However, not everyone is eligible to file in this specific category, which also equates to complete liquidation.
When someone files a Chapter 7 petition in Pennsylvania, a trustee will be appointed to administer the case. The trustee will liquidate the nonexempt assets that belonged to the debtor. If the debtor does not have any nonexempt assets, the trustee will likely file a no asset report with the court. In that event, no liquidation and distribution to unsecured creditors will take place.
A Chapter 7 bankruptcy involves the liquidation of certain assets of the individual debtor, and creditors are paid off with the proceeds. Pennsylvania residents would file a petition for bankruptcy in a bankruptcy court closest to them. The filing fee is $245, and there is also a $75 administrative fee and a $15 trustee fee. These fees are normally due at the time of filing, but the court may give permission for the filer to pay in installments ending no later than 120 days after the petition is filed. Fees may be waived if the filer's income is less than 150 percent of the poverty level.
Most business owners in Pennsylvania have dreams of selling plenty of merchandise in order to stay in the black. However, circumstances beyond their control, such as a downturn in the market or other financial problems, could result in them seeking Chapter 7 bankruptcy protection. A furniture business in one out-of-state case is in the process of liquidating its assets under the supervision of a Bankruptcy Court after filing for relief.