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Bankruptcy

We are here to help you.   Regardless of your situation, you will be treated with compassion and respect.   Your case will be handled diligently and promptly.   Below, we've answered some of the common questions associated with bankruptcy.   If you don't find your answer there, please don't hesitate to call us at (724)658-4417.   We offer a free financial consultation and payment arrangements are available.  

Common Bankruptcy Questions

Answers

Yes.   An experienced bankruptcy attorney and capable staff will support you throughout this difficult time.  

Attorney Paula J. Cialella Cerasi will handle your case and appear in court for you.   Attorney Cerasi has specialized in bankruptcy issues in Western Pennsylvania for years and has personally assisted hundreds of clients through all facets of Chapter 7 and Chapter 13 cases.  

Our main paralegal for Chapter 7 is Jennie.   Jennie is a certified paralegal.   She received her certificate from Penn State in April 2006.   She has a minimum of five years experience in handling all aspects of the Chapter 7 case.   She will handle the preparation of documents to be filed with the Bankruptcy Court, deal with your creditors, and will meet with you to sign your bankruptcy schedules.   Call her when you have any questions about your case or how the process works.   If she can’t answer your question immediately, she will either get the answer for you or have the appropriate person call you back.  

Many people mistakenly believe that someone who files bankruptcy never intended to pay their debts in the first place.   That has not been our experience.   Loss of income or a job, medical problems, and divorce or separation cause most bankruptcies.   These circumstances beyond our clients’ control have caused them to see us about bankruptcy as a possible solution to their problems.   The prospect of filing bankruptcy appears frightening, but frequently a person has no other realistic option and genuinely needs the fresh start bankruptcy offers.  

If you do not have any excess income after paying your monthly expenses, then a Chapter 7 is probably your best option.   You will eliminate all your unsecured debts and keep everything you have.   If your income exceeds the Pennsylvania median for the number of individuals in your household or if you have money left over after paying your reasonable monthly bills (excluding credit cards and other unsecured debts) then a Chapter 13 might be necessary.   You might also have to file a Chapter 13 to protect assets which exceed the limits the Bankruptcy Law allows or to catch up missed payments on your mortgage or vehicle loans.  

Note:   In a Chapter 13 bankruptcy, if you are employed, the Court requires a wage attachment to make your required monthly payments to your creditors.   All of your secured debts, such as mortgages and vehicle payments, must be paid through the Chapter 13 plan.  

Yes.   When you file bankruptcy, you can usually keep your home, vehicles, furniture, pension and most other property you own.   If we see any problem with your doing so we will tell you before you file.  

You will have to continue to pay these loans if you want to keep the property.   If you do not, the lender can request that you surrender the collateral.   Many clients keep paying motor vehicle and mortgage loans to keep their cars and homes.  

If you owe more on a loan than the collateral is worth, we will negotiate with the creditor to see if we can lower the payment, the interest rate or the balance.   Sometimes we can arrange for you to obtain a loan to “redeem” or buy back a vehicle through bankruptcy and pay what it is worth rather than what you owe.   Ask us for details if you are in this situation.  

With some credit cards, expensive items you purchased such as a computer, jewelry or a lawn mower, become collateral for the repayment of the balance.   Even when a creditor claims it holds collateral, however, you probably will not have to return the item or pay the full balance.   We can negotiate with these creditors to see if we can strike a better deal, enabling you to keep the item without paying the full amount you owe.  

Most credit cards are unsecured, meaning there is no property pledged as collateral for the debt.   At our meeting today we probably told you to immediately stop paying your credit card bills as your bankruptcy will eliminate them.   Some creditors allow you to keep an account if you agree to reaffirm the debt but most creditors do not offer reaffirmation of an unsecured debt.   The Bankruptcy Court will likely refuse to permit you to reaffirm an unsecured debt, even if the credit card company offered to do so.   For this reason, we urge you to list all of your unsecured debts and eliminate them.  

A Chapter 7 takes approximately five months from the time a petition is filed until the final discharge.   A Chapter 13 lasts from three to five years.  

After you return your questionnaire, we prepare detailed schedules, listing your property, debts and other financial information.   Then we schedule an appointment with you to meet with a paralegal to review their accuracy and sign them.   Once approved by the attorney, we file your case with the Bankruptcy Court.   The Court schedules a meeting with the bankruptcy Trustee, known as the meeting of creditors.   This typically occurs about one month after the date you file.   The Court also notifies your creditors that you have filed and directs them to stop all contact and collection activity.  

We will give you at least three weeks notice of the date and time of the meeting of creditors and inform you what questions the Trustee will ask.   Someone from our office will accompany you to the meeting.   Most creditors do not attend and the meeting lasts about ten minutes.   This is usually the only court appearance required of you.  

After the meeting of creditors, the Bankruptcy Court should grant a Chapter 7 discharge in about two to three months.  

Generally, credit agencies can report bankruptcies for up to ten years.   But a bankruptcy can actually improve one’s credit.   Typically, a credit report discloses numerous debts, which your bankruptcy eliminates.   As you cannot file another Chapter 7 bankruptcy for eight years, you become a much better credit risk following your discharge.   Perhaps most important, as you no longer have to pay these debts, you can save some money and no longer rely on credit cards.  

No.   A single or a joint bankruptcy may be filed.   When only one spouse files, however, the bankruptcy will not eliminate any joint debts for the spouse who did not file.   We will advise you if a single or a joint bankruptcy works best for you.   We must report a non-filing spouse’s income to the Court as it is part of the household income.  

You no longer need to speak to your creditors.   Tell whoever calls you, “I’ve hired Attorney Paula J.   Cialella Cerasi to represent me.   She has instructed me not to talk to anyone about my bills, so I can’t talk to you.   You can call her at 724-658-4417.   ”