Chapter 7 Bankruptcy in Philadelphia, PA

If you’re in Philadelphia and the debt has stopped being something you can budget your way out of, Chapter 7 may be the cleanest fix. It erases most unsecured debt, credit cards, medical bills, personal loans, collections, usually within about 90 to 120 days, and most people keep their home, car, and retirement.

Do you qualify? Chapter 7’s means test compares your household income to the Pennsylvania median for your household size. This is the Pennsylvania figure, which is different from New Jersey’s, so the cutoff for a Philadelphia filing isn’t the same as a South Jersey one. Under the median and you generally qualify; over it, we run the second half of the test together. Many people who think they earn too much still pass.

Will you lose anything? Almost certainly not. Pennsylvania filers can choose the federal bankruptcy exemptions, which most people use because they protect more property, your home equity, your car, household goods, the tools of your trade, and retirement accounts. The federal homestead exemption currently protects up to $31,575 of home equity, with up to $5,025 for a vehicle. We check every asset against the exemptions before filing.

What it’s like. Your case is filed right here in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania, where Mike practices regularly and has served on the court’s local bankruptcy rules committee. There’s one short meeting of creditors (the “341 meeting”), currently held remotely. In this court we’ve recovered $20,000 for a client whose creditor violated the automatic stay (In re Minarik) and won Rule 9011 sanctions against a creditor who filed a baseless claim (In re Heasley). You work with Mike start to finish.

Flat fee, payment plans, free first consultation by phone or Zoom. Ask about our $999 flat-fee Chapter 7 if your income qualifies.