Pennsylvania Bankruptcy

Bankruptcy is a process that happens in a federal court. It helps debtors obtain relief from some or all of their outstanding debts and obligations. Although bankruptcy is a federal procedure, what you keep (assets) may be determined by your choice of exemption.

Pennsylvania allows individuals or businesses to choose either the state exemptions or the federal exemption list when they file for bankruptcy. You are only permitted to pick one system and use it consistently.

You must be aware that Pennsylvania has no homestead or motor-vehicle exemptions, so you may choose the federal scheme.

How to File Bankruptcy in Pennsylvania

There are several steps involved in filing for bankruptcy in Pennsylvania. It is vital to make inquiries and gather all necessary documents to back the case. You must gather relevant documents such as tax returns, six months of income, bank statements, lists of assets/debts, deeds, titles, lawsuits, and garnishments. Before filing, you must take a court-approved course within 180 days. Proceed to choose a chapter (Chapter 7 (liquidation), Chapter 13 (repayment plan), or Chapter 11 (reorganization)) and an exemption scheme that suits you.

File your petition and schedules in your district, either on your own or via an attorney. There is a cost associated with the filing of documents in court. Find out the price from the clerk or the court's website and pay the proper amount. There will be a 341 meeting with all creditors where you must bring your ID, documents, and answer the trustee’s questions under oath.

Finally, complete a debtor-education, respond to trustee/court notices, and proceed to discharge or plan confirmation/completion.

Pennsylvania Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

In Pennsylvania, your choice of choice affects how your case proceeds in court. Common ones include:

Chapter 7 (liquidation)

A trustee is granted power by the court to sell non-exempt assets to repay creditors. This chapter helps individuals with low income to repay their debts. Since Pennsylvania lacks support for homestead and cars, many filers may prefer the federal list to protect equity.

Chapter 13 (repayment plan)

Within a 3–5-year plan, this chapter allows debtors to repay their debts. The required repayment plan must be court-approved and reflect the value of non-exempt equity under the exemption set you chose.

Chapter 11 (reorganization)

Chapter 11 is exclusive to businesses and some high-debt individuals. It allows them to continue their operations while they propose a new plan to repay their debts without losing their business. The reorganization plan or effort must be approved by the court.

Step-by-Step Checklist for Pennsylvania Filers

This quick list will assist you during the bankruptcy filing process in Pennsylvania.

• Complete a credit-counseling course
• Gather your income, tax, asset, and debt records
• Choose a chapter and pick the state or federal exemptions
• File your petition and schedules in the proper district
• Pay the filing fee or any associated fee.
• Attend the 341 meeting of creditors.
• Complete a debtor-education course.
• Satisfy the trustee’s requests and follow the court communications until discharge or plan completion.

Pennsylvania Bankruptcy Courts & Record Access

Pennsylvania has three federal bankruptcy districts, and you must file in the district that covers your county of residence.

Court Locations

• The Eastern District of Pennsylvania: The headquarters of the U.S. Bankruptcy Court for the Eastern District of Pennsylvania is in Philadelphia. The court district has a divisional office in Reading. You may contact the Philadelphia office at:

• The Middle District of Pennsylvania: This district covers cities like Wilkes-Barre, Harrisburg, and Williamsport. The court maintains two offices in Wilkes-Barre and Harrisburg. You may contact the courthouses at:

• The Western District of Pennsylvania: The U.S. Bankruptcy Court for the Western District of Pennsylvania has its headquarters in Pittsburgh. This district also has an additional division that covers cities like Erie and Johnstown. The full address of the main courthouse and office is:

Record Access

Through the Voice Case Information System (VCIS), record seekers may access limited bankruptcy case files. This system is accessible by calling 866-222-8029 (from a touch-tone telephone). There is no charge for this service. Alternatively, they may view the records from the Public Access to Court Electronic Records (PACER) system. Users must create an account and pay a $0.10 service fee to search and view case documents.

Computer terminals are available at the Clerk's offices in Erie and Pittsburgh for public use. There is no charge for this service, and individuals may even print copies of records. You may also request old or archived case files from the National Archives and Records Administration. This is not a free service.

Pursuant to Rule 5003(c), the Clerk keeps a copy of every final judgment or order filed in the court. You may inquire about judgments and copies of court records in person from the clerk’s office during the public working hours on any weekday.