Chapter 13 Bankruptcy in Pennsylvania

If you are behind on your mortgage, car payments, taxes, or facing foreclosure or repossession, Chapter 13 bankruptcy in Pennsylvania may allow you to regain control without giving up your property. Chapter 13 is a court-approved repayment plan that lets you catch up on debts over time while stopping aggressive collection actions.

At Ginsburg Law Group, we help Pennsylvania residents use Chapter 13 strategically to protect assets, stop foreclosure, and resolve debt on manageable terms.

Free, confidential consultation available.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is often called a reorganization bankruptcy. Instead of wiping out debt immediately, you repay some or all of your debts through a 3- to 5-year court-approved payment plan based on your income, expenses, and assets.

Chapter 13 is commonly used to:

• Stop foreclosure and catch up on mortgage arrears
• Prevent vehicle repossession
• Pay back taxes over time
• Manage debt when income is too high for Chapter 7
• Protect assets that might be at risk in Chapter 7

Who Qualifies for Chapter 13 Bankruptcy in Pennsylvania?

To file Chapter 13 in Pennsylvania, you must:

• Have regular income (employment, self-employment, benefits, etc.)
• Be within federal debt limits for Chapter 13
• Be able to afford a monthly plan payment

Unlike Chapter 7, there is no means test disqualification for Chapter 13, making it an option for higher-income households.

How the Pennsylvania Chapter 13 Payment Plan Works

Your Chapter 13 plan is customized based on:

• Monthly income and reasonable expenses
• Secured debts (mortgage, car loans)
• Priority debts (taxes, child support)
• Non-exempt equity in property

Payments are made once per month to a Chapter 13 trustee, who distributes funds to creditors according to the plan.

Many unsecured debts are paid only partially and the remaining balance is discharged at the end of the plan.

How Long Does Chapter 13 Take in Pennsylvania?

Chapter 13 cases last:

• 36 months for most below-median income filers
• 60 months for above-median income filers

The automatic stay goes into effect immediately upon filing, stopping foreclosure, garnishments, lawsuits, and repossessions.

Can Chapter 13 Stop Foreclosure in Pennsylvania?

Yes. Chapter 13 is one of the most powerful tools to stop foreclosure in Pennsylvania.

It allows you to:

• Halt a sheriff sale
• Catch up on missed mortgage payments over time
• Continue making regular monthly mortgage payments

As long as you comply with the plan, lenders cannot proceed with foreclosure.

What Debts Are Paid in Chapter 13?

Chapter 13 organizes debts into categories:

Priority Debts

• Recent income taxes
• Child support and alimony

Secured Debts

• Mortgages
• Auto loans

Unsecured Debts

• Credit cards
• Medical bills
• Personal loans

Unsecured creditors often receive only a percentage of what is owed.

What Property Can You Keep in Chapter 13 in PA?

One of the biggest advantages of Chapter 13 bankruptcy in Pennsylvania is that you generally keep all of your property, including:

• Your home
• Vehicles
• Business assets
• Retirement accounts

This makes Chapter 13 especially useful for homeowners or individuals with non-exempt equity.

Chapter 13 Bankruptcy Cost in Pennsylvania

Chapter 13 costs typically include:

• Court filing fee
• Credit counseling and debtor education courses
• Attorney fees (often paid through the plan)

Because fees can be spread out over time, Chapter 13 is often more accessible than people expect.

Chapter 13 vs. Chapter 7 in Pennsylvania

Chapter 13	Chapter 7
3–5 year repayment plan	Debt discharge in ~3–4 months
Protects homes & assets	Best for little/no assets
Stops foreclosure long-term	Temporary foreclosure relief
Higher income friendly	Income limits apply

Frequently Asked Questions – Pennsylvania Chapter 13 Bankruptcy

How long does Chapter 13 take in Pennsylvania?

Most plans last between 3 and 5 years depending on income.

Can Chapter 13 stop foreclosure in Pennsylvania?

Yes. Filing immediately stops foreclosure and allows you to catch up over time.

Can I keep my house in Chapter 13 bankruptcy?

Yes. Most Chapter 13 filers keep their homes.

What happens if I miss a Chapter 13 payment?

Missing payments can lead to dismissal, but options may exist if addressed early.

Can Chapter 13 reduce credit card debt?

Yes. Credit cards are unsecured and often paid only partially.

Can self-employed individuals file Chapter 13 in PA?

Yes, as long as income is regular and documented.

Are tax debts included in Chapter 13?

Yes. Certain taxes can be repaid over time without penalties.

Does Chapter 13 affect my credit?

Yes, but many people rebuild credit during the plan.

Can I convert Chapter 13 to Chapter 7 later?

In some cases, yes, if circumstances change.

Do I need a lawyer for Chapter 13 in Pennsylvania?

While not required, Chapter 13 is complex and attorney guidance is strongly recommended.

Speak With a Pennsylvania Chapter 13 Bankruptcy Attorney

If you are considering Chapter 13 bankruptcy in Pennsylvania, getting legal advice early can help protect your home, income, and future.

Contact Ginsburg Law Group today for a free consultation to discuss whether Chapter 13 is right for you.

Call 855-978-6564 or email bankruptcy@ginsburglawgroup.com.