Pennsylvania's bankruptcy laws are designed to provide debt relief and property protection. This powerful process contains many complex parts, and you may want to learn more about how it could affect your financial future before you decide to file.
This page provides information on the bankruptcy laws in Pennsylvania, but many people prefer speaking directly with a local bankruptcy attorney.
For a free case evaluation with a local bankruptcy lawyer, complete the free form on this page. We'll connect you with a Pennsylvania bankruptcy lawyer right away.
The bankruptcy laws in Pennsylvania provide two paths for relief: Chapter 7 and Chapter 13. Each type is option is designed to help people in different situations. Both can provide protection, relief and breathing room.
Chapter 7 bankruptcy bankruptcy is designed to help people without the income to cover debt resulting from credit cards, personal loans, medical bills and payday loans. This type of debt is known as unsecured debt. It may be completely retired by Chapter 7 bankruptcy.
Chapter 7 does, however, have limits on the protection it offers your property. In rare cases, there may even be a sale of certain property. But anything covered under the Pennsylvania exemptions list may not be sold.
To qualify, you must meet certain income standards. Also, Chapter 7 may be best for individuals that own less property. Chapter 13 bankruptcy may be a better fit for those who have lots of property – say, multiple homes, cars or professional tools – that they want to protect.
Chapter 13 bankruptcy is often referred to as “reorganization.” Debtors who file Chapter 13 bankruptcy often own more property, and could be able to keep most of these assets.
In Chapter 13 bankruptcy, the debtor enters into a 3-5 year debt repayment plan to be proposed and approved by the bankruptcy court. This debt repayment plan allows the debtor time to catch up on past due financial obligations.
Chapter 7 exemptions and the rest of Pennsylvania's bankruptcy laws can be complicated. Other aspects of your case, such as paper work, court meetings and filing deadlines, may be overwhelming at a time when you already have a lot on your plate.
If you decide filing bankruptcy may be right for you, a Pennsylvania bankruptcy lawyer can answer your questions about the state’s laws and take you through the case step-by-step.
To get a free case evaluation with a local bankruptcy lawyer, complete the free form on this page or call, toll free, 877-349-1309. We’ll connect you with a Pennsylvania bankruptcy lawyer near you immediately.
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Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local Pennsylvania bankruptcy attorney.
Bankruptcy laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local lawyer about filing bankruptcy in Pennsylvania.