How does Chapter 7 Work in PA?
In a bankruptcy case under Chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a Chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for giving up your property, except for exempt property which the law allows you to keep.
What debt Cannot be discharged in Chapter 7?
Filing for Chapter 7 bankruptcy eliminates credit card debt, medical bills and unsecured loans; however, there are some debts that cannot be discharged. Those debts include child support, spousal support obligations, student loans, judgments for damages resulting from drunk driving accidents, and most unpaid taxes.
What assets are exempt from creditors in PA?
The following items are exempt from execution by most creditors under Pennsylvania and Federal law: Most public benefits, Social Security benefits, money in retirement accounts (such as 401ks and pensions), and unemployment benefits. (SocialSecurity benefits are still exempt once they are in the bank.)
How much cash is exempt in Chapter 7 in PA?
If you declare bankruptcy, will you lose literally every dollar that you have in your savings? The answer is no: some cash can be exempted in a Chapter 7 case. For example, typically under Federal exemptions, you can have approximately $20,000.00 cash on hand or in the bank on the day you file bankruptcy.
How much equity can I have in my home and still file Chapter 7 Pa?
Real Property Exemptions: Pennsylvania Homestead Exemptions The federal bankruptcy exemptions currently allow you to protect up to $25,150 of equity in your home. If you are married, then the number can be doubled to $50,300. Equity is the amount your home is worth minus the amount you owe on your mortgage(s).
Can creditors collect after Chapter 7 is filed?
Debt collectors cannot try to collect on debts that were discharged in bankruptcy. Also, if you file for bankruptcy, debt collectors are not allowed to continue collection activities while the bankruptcy case is pending in court.
What can not be included in bankruptcies?
8 Kinds of Debt You Can’t Lose in Bankruptcy
- Most back taxes and customs.
- Child support and alimony.
- Student loans.
- Home mortgage and other property liens.
- Debts from fraud, embezzlement, larceny, or from “willful and reckless acts”
- Your car loan, if you want to keep your car.
- Debt that doesn’t belong to you.
Can you go to jail for debt in Pennsylvania?
You can’t be prosecuted criminally or be sent to jail for failing to pay ordinary debts. (You can, however, be criminally prosecuted for failing to pay some special kinds of debts such as child support, fines, or debts caused by fraud, bad checks, or theft.)
What personal property can be seized in a Judgement in Pennsylvania?
Can Personal Property Be Seized In A Pennsylvania Judgement? Judgments from Magisterial District Court and Court of Common Pleas. A plaintiff can seize tangible personal property which are items such as household furnishings, jewelry, and business and office equipment.
What happens to my bank account if I file Chapter 7?
In most Chapter 7 bankruptcy cases, nothing happens to the filer’s bank account. As long as the money in your account is protected by an exemption, your bankruptcy filing won’t affect it.
What assets are lost in Chapter 7?
Good question. Chapter 7 bankruptcy is designed to decrease debt by liquidating assets to pay off creditors….Non-Exempt Assets – What Can Be Liquidated?
- Vacation home,
- Second car,
- Inherited items of value,
- Cash, checking and savings accounts, stocks, bonds or other investments.