Slinger, WI asked in Bankruptcy for Pennsylvania

Q: What are the bankruptcy laws in PA? What is protected from bankruptcy ie home, car, etc?

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1 Lawyer Answer
  • Consumer Law Lawyer
  • Cary, NC
  • Licensed in Pennsylvania

A: Your question as to the bankruptcy laws is too broad. What do you want to know? There are 2 kinds of bankruptcy that most debtors can file - either a chapter 7 or chapter 13. Briefly, the difference is that the chapter 7 is a straight liquidation meaning that most are no asset cases. You keep your whatever is exempt under the law and you get a discharge of your dischargeable debt. With a chapter 13, which is for people who (a) have more assets than is provided for in the exemptions and (b) who have a steady income stream, these debtors keep all of their property but have to pay back a percentage of their debt over a 3-5 year period. If you are behind on your mortgage and want to save your home, the chapter 13 also lets you get caught up on the mortgage.

PA allows you to choose between state (PA) or federal bankruptcy exemptions. PA has no exemption for a home or a car so if you have either of those things, then you will want to choose the federal bankruptcy exemptions.

There are many websites where you can go to learn about bankruptcy - or, just to name two.

However, many bankruptcy attorneys give free consults. I suggest that you get one to see what kind of bankruptcy you qualify for given your assets and income.

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