Best Bankruptcy Lawyers in Pennsylvania

About Bankruptcy Law in Pennsylvania, United States

Bankruptcy is a legal process that helps individuals and businesses struggling with debt to either eliminate or repay what they owe under the protection of a federal bankruptcy court. In Pennsylvania, as in the rest of the United States, bankruptcy is governed mainly by federal law, particularly the United States Bankruptcy Code. However, certain aspects of bankruptcy such as property exemptions are affected by Pennsylvania state laws. Filing for bankruptcy in Pennsylvania can offer relief from overwhelming debt, halt collection activities, and create a path toward financial stability.

Why You May Need a Lawyer

Bankruptcy law is complex, and proceeding without legal help can be risky. Here are some common situations where a bankruptcy lawyer’s guidance is beneficial:

• You are facing foreclosure or repossession of your home or car.
• Your wages are being garnished or you are being harassed by creditors.
• You are unsure which bankruptcy chapter (such as Chapter 7 or Chapter 13) is right for your situation.
• You want to protect certain assets from liquidation.
• You have business and personal debts that are complicated.
• You are unfamiliar with required paperwork and deadlines.
• You want to avoid errors that could result in your case being dismissed.

An experienced bankruptcy attorney can help you understand your rights, gather necessary documentation, navigate complex local rules, and represent your interests in court.

Local Laws Overview

While bankruptcy relies mainly on federal law, Pennsylvania residents must also consider specific state laws that affect bankruptcy proceedings.

• Exemptions: Pennsylvania residents can choose between federal bankruptcy exemptions and Pennsylvania state exemptions. State exemptions may protect equity in your home, certain personal property, pensions, and other assets from being used to pay creditors.
• Homestead Exemption: Pennsylvania’s homestead exemption is limited compared to some other states, but federal exemptions may provide more generous protection for your primary residence.
• Married Couples: Pennsylvania is not a community property state, but married couples filing jointly may be able to double some exemption amounts.
• Local Court Procedures: Bankruptcy cases in Pennsylvania are handled by the United States Bankruptcy Court for either the Eastern, Middle, or Western District, depending on where you live. Each district may have specific local rules or forms.
• Credit Counseling Requirements: All bankruptcy filers in Pennsylvania must complete a pre-filing credit counseling course and a post-filing debtor education course from an approved provider.

Frequently Asked Questions

What types of bankruptcy are available to individuals in Pennsylvania?

Most individuals file either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 involves liquidating non-exempt assets to pay debts, while Chapter 13 allows you to keep property and pay debts over time through a court-approved repayment plan.

How do I know if I qualify for Chapter 7 bankruptcy?

You must pass a means test to qualify for Chapter 7. This test compares your income to the median income in Pennsylvania for a household of your size. If your income is below the median or you meet certain other criteria, you may qualify.

Will bankruptcy stop creditors from contacting me?

Yes. When you file for bankruptcy, an automatic stay goes into effect that stops most collection activities, including phone calls, lawsuits, wage garnishments, and foreclosure actions.

Can I protect my home and car if I file for bankruptcy?

Depending on the exemptions you claim and the type of bankruptcy you file, you may be able to keep your home and car. This is more likely in Chapter 13 than in Chapter 7, especially if you are behind on payments.

Will all my debts be eliminated if I file for bankruptcy?

Not necessarily. Some debts, such as most student loans, child support, alimony, some taxes, and certain fines, are typically not dischargeable in bankruptcy.

How will bankruptcy affect my credit?

Bankruptcy will have a negative impact on your credit score and may remain on your credit report for up to ten years for Chapter 7 and up to seven years for Chapter 13. However, many filers can rebuild their credit after bankruptcy.

Do I have to go to court if I file for bankruptcy?

Most bankruptcy filers must attend a meeting of creditors, also known as a 341 meeting. This is not held in a traditional courtroom, and a judge is not present. Most cases do not require further court appearances.

Can both spouses file for bankruptcy together in Pennsylvania?

Yes. Married couples can file a joint bankruptcy petition in Pennsylvania. This can be more cost-effective and may make it easier to protect jointly owned property.

How much does it cost to file for bankruptcy in Pennsylvania?

There are court filing fees, which are currently several hundred dollars, as well as attorney fees if you hire a lawyer. Fee waivers or installment payments may be available if you meet income guidelines.

What documentation do I need to file for bankruptcy?

You will need to provide details of your income, expenses, assets, debts, tax returns, bank statements, pay stubs, and information about any property transactions from the past few years.

Additional Resources

Residents of Pennsylvania seeking information or assistance with bankruptcy can consult the following:

• United States Bankruptcy Court for the Eastern, Middle, and Western Districts of Pennsylvania for court forms and procedures
• Pennsylvania Legal Aid Network for free or low-cost legal help
• National Foundation for Credit Counseling for certified credit counseling providers
• Pennsylvania Attorney General’s office for information about consumer protection
• Local county bar associations for referrals to bankruptcy attorneys

Next Steps

If you are considering bankruptcy in Pennsylvania, follow these steps to protect your interests:

1. Gather all necessary financial information, such as debts, income, assets, and recent tax returns.
2. Consult a reputable credit counseling agency approved to provide required counseling.
3. Contact a qualified bankruptcy attorney familiar with Pennsylvania bankruptcy laws for an initial consultation.
4. Review all your legal options, including alternatives to bankruptcy, before making a final decision.
5. Follow your attorney’s instructions for completing paperwork, attending the creditors meeting, and meeting ongoing requirements for your bankruptcy type.

Taking timely action and seeking the right help can make the bankruptcy process less stressful and improve your chances for financial recovery.