Bankruptcy – Chapter 7 in Pennsylvania
Free Consultation Available
Chapter 7 Bankruptcy in Pennsylvania
If you are overwhelmed by credit cards, medical bills, personal loans, or wage garnishments, Chapter 7 bankruptcy in Pennsylvania may give you the fresh start you need. Chapter 7 is designed to eliminate unsecured debt quickly while protecting essential assets through Pennsylvania and federal bankruptcy exemptions.
At Ginsburg Law Group, we help Pennsylvania residents understand whether Chapter 7 is the right option, what property they can keep, and how the process works from start to finish.
Free, confidential consultation available.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, often called “liquidation bankruptcy,” allows eligible individuals to discharge most unsecured debts, including:
- Credit card debt
- Medical bills
- Personal loans
- Payday loans
- Utility arrears
- Certain judgments
In most Pennsylvania Chapter 7 cases, no property is actually liquidated because exemptions protect common assets.
Who Qualifies for Chapter 7 Bankruptcy in Pennsylvania?
To file Chapter 7 in Pennsylvania, you must meet income and eligibility requirements set by federal law.
The Pennsylvania Chapter 7 Means Test
The Chapter 7 means test compares your household income to the Pennsylvania median income based on family size.
- If your income is below the PA median, you typically qualify automatically
- If your income is above the median, you may still qualify after allowed expense deductions
The means test is detailed and technical, which is why many filers benefit from speaking with a Pennsylvania bankruptcy attorney before filing.
How Long Does Chapter 7 Take in Pennsylvania?
Most Chapter 7 cases in Pennsylvania follow this timeline:
- Pre-filing credit counseling (required)
- Case filing – automatic stay immediately stops collections
- 341 meeting of creditors (usually 30–45 days after filing)
- Discharge order issued about 60 days later
Total timeline: approximately 3–4 months from filing to discharge.
What Can You Keep in Chapter 7 Bankruptcy in PA?
Pennsylvania allows filers to choose between Pennsylvania exemptions and federal bankruptcy exemptions (most filers choose federal).
Common assets often protected include:
- Equity in your home (homestead exemption)
- One or more vehicles (up to exemption limits)
- Household goods and furniture
- Retirement accounts (401(k), IRA, pension)
- Social Security, disability, and certain benefits
Every situation is different, especially if you own property, vehicles with equity, or are owed money.
Will Chapter 7 Stop Collections in Pennsylvania?
Yes. Filing Chapter 7 triggers an automatic stay that immediately stops:
- Wage garnishments
- Bank levies
- Lawsuits
- Collection calls and letters
- Foreclosure actions (temporarily)
Creditors who violate the automatic stay may face penalties.
Debts Not Discharged in Chapter 7
While Chapter 7 eliminates many debts, some obligations usually survive bankruptcy, including:
- Most student loans
- Recent income taxes
- Child support and alimony
- Certain court fines and restitution
- Debts incurred through fraud
An attorney can review whether any exceptions apply in your case.
Chapter 7 Bankruptcy Cost in Pennsylvania
The cost of filing Chapter 7 in Pennsylvania typically includes:
- Court filing fee
- Mandatory credit counseling courses
- Attorney fees (varies by complexity)
Many firms offer payment plans prior to filing to make relief accessible.
Chapter 7 vs. Chapter 13 in Pennsylvania
| Chapter 7 | Chapter 13 |
|---|---|
| Eliminates debt quickly | Repayment plan over 3–5 years |
| No monthly plan payment | Monthly trustee payments |
| Best for lower income | Best for higher income or asset protection |
Choosing the right chapter depends on income, assets, and long-term goals.
Frequently Asked Questions – Pennsylvania Chapter 7 Bankruptcy
How long does Chapter 7 take in Pennsylvania?
Most cases are completed in about 90–120 days from filing to discharge.
Can I keep my car in Chapter 7 bankruptcy in PA?
Often yes, especially if your equity is within exemption limits or the car is financed and current.
Can Chapter 7 stop wage garnishment in Pennsylvania?
Yes. Wage garnishments stop immediately once the case is filed.
What is the Pennsylvania Chapter 7 means test?
It is a federal formula comparing your income and expenses to PA median income standards.
Do I lose my house if I file Chapter 7 in Pennsylvania?
Not necessarily. Many homeowners keep their homes if equity is protected and mortgage payments are current.
Can married couples file Chapter 7 jointly in PA?
Yes. Joint filing is common and often cost-effective.
Will Chapter 7 erase medical debt?
Yes, medical bills are generally fully dischargeable.
How often can I file Chapter 7 in Pennsylvania?
You can receive a Chapter 7 discharge once every 8 years.
Does Chapter 7 affect my job?
Most employers cannot fire you for filing bankruptcy.
Do I need a lawyer to file Chapter 7 in Pennsylvania?
You are not required to have one, but mistakes can lead to dismissal or loss of assets.
Speak With a Pennsylvania Chapter 7 Bankruptcy Attorney
If you are considering Chapter 7 bankruptcy in Pennsylvania, getting accurate legal advice before filing can save you time, money, and stress.
Contact Ginsburg Law Group today for a free consultation and find out if Chapter 7 is the right solution for you.
Call 855-978-6564 or email bankruptcy@ginsburglawgroup.com.
