---
title: What are the steps involved in filing for bankruptcy in Pennsylvania, and what are the different types of bankruptcy that individuals and businesses can file for?
description: Learn the essential steps involved in filing for bankruptcy in Pennsylvania with Legal Faqs' latest blog post. Discover the different types of bankruptcy for individuals and businesses to file, and gain a better understanding of bankruptcy proceedings. Find out how Legal Faqs can help guide you through the bankruptcy process with peace of mind.
image: https://www.legalfaq.ai/hubfs/LegalFAQ/pennsylvania-legal-faqs.jpg
---

[Skip to content](https://www.legalfaq.ai/faqs/what-are-the-steps-involved-in-filing-for-bankruptcy-in-pennsylvania-and-what-are-the-different-types-of-bankruptcy-that-individuals-and-businesses-can-file-for#main-content)

[LegalFAQ.ai](https://www.legalfaq.ai/)

- [Home](https://www.legalfaq.ai)
- [Blog](https://www.legalfaq.ai/blog)
- [FAQ Library](https://www.legalfaq.ai/faqs/all)

Open main navigation

Close main navigation

- [Home](https://www.legalfaq.ai)
- [Blog](https://www.legalfaq.ai/blog)
- [FAQ Library](https://www.legalfaq.ai/faqs/all)
- [Ask a question](https://www.legalfaq.ai/ask)

[Ask a question](https://www.legalfaq.ai/ask)

[All posts](https://www.legalfaq.ai/faqs/all)

 April 16, 2023

# What are the steps involved in filing for bankruptcy in Pennsylvania, and what are the different types of bankruptcy that individuals and businesses can file for?

![Picture of Chris Battis](https://www.legalfaq.ai/hs-fs/hubfs/battis-mug.jpg?width=50&name=battis-mug.jpg) By  [Chris Battis](https://www.legalfaq.ai/faqs/author/chris-battis)  ·   2 minute read

As a lawyer, I can provide guidance on the steps involved in filing for bankruptcy in Pennsylvania and the different types of bankruptcy that individuals and businesses can file for.

The first step in filing for bankruptcy in Pennsylvania is to determine which type of bankruptcy is appropriate for your situation. There are two main types of bankruptcy that individuals and businesses can file for: Chapter 7 and Chapter 13.

Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves the sale of a debtor's non-exempt assets to pay off their debts. Any remaining debts are then discharged, meaning they are eliminated and the debtor is no longer responsible for paying them. To file for Chapter 7 bankruptcy, an individual or business must pass a means test, which compares their income to the median income for their state. If their income is below the median, they may be eligible for Chapter 7 bankruptcy. If their income is above the median, they may still be eligible if they can show that they do not have enough disposable income to pay off their debts.

Chapter 13 bankruptcy, also known as reorganization bankruptcy, involves creating a repayment plan to pay off a portion of a debtor's debts over a period of three to five years. To file for Chapter 13 bankruptcy, an individual or business must have a regular income and owe less than a certain amount in secured and unsecured debt. The repayment plan is determined based on the debtor's income, expenses, and the amount of debt owed.

The next step in filing for bankruptcy in Pennsylvania is to gather all of the necessary documentation, including a list of creditors, assets, liabilities, and income and expenses. Once all of the necessary documentation is gathered, a bankruptcy petition must be filed with the bankruptcy court in the district where the debtor lives or where their business is located.

After the bankruptcy petition is filed, an automatic stay goes into effect, which stops all collection actions by creditors, including lawsuits, wage garnishments, and foreclosures. A bankruptcy trustee is also appointed to oversee the bankruptcy proceedings and ensure that the debtor's assets are properly distributed to creditors.

Throughout the bankruptcy process, the debtor may be required to attend a meeting of creditors, where they will be asked questions about their financial situation by the bankruptcy trustee and any creditors who attend. Additionally, the debtor may be required to complete a financial management course.

It is important to note that not all debts can be discharged through bankruptcy, and certain debts may have priority over others in the distribution of assets. For example, taxes, student loans, and child support payments are generally non-dischargeable debts.

In summary, the steps involved in filing for bankruptcy in Pennsylvania include determining the appropriate type of bankruptcy, gathering necessary documentation, filing a bankruptcy petition, attending a meeting of creditors, completing a financial management course, and working with a bankruptcy trustee to distribute assets to creditors. It is important to consult with a licensed attorney to ensure that all necessary steps are taken and to navigate any potential limitations or exceptions to the advice given.

Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://www.legalfaq.ai/faqs/what-are-the-steps-involved-in-filing-for-bankruptcy-in-pennsylvania-and-what-are-the-different-types-of-bankruptcy-that-individuals-and-businesses-can-file-for) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://www.legalfaq.ai/faqs/what-are-the-steps-involved-in-filing-for-bankruptcy-in-pennsylvania-and-what-are-the-different-types-of-bankruptcy-that-individuals-and-businesses-can-file-for) [twitter icon](https://twitter.com/intent/tweet?url=https://www.legalfaq.ai/faqs/what-are-the-steps-involved-in-filing-for-bankruptcy-in-pennsylvania-and-what-are-the-different-types-of-bankruptcy-that-individuals-and-businesses-can-file-for) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://www.legalfaq.ai/faqs/what-are-the-steps-involved-in-filing-for-bankruptcy-in-pennsylvania-and-what-are-the-different-types-of-bankruptcy-that-individuals-and-businesses-can-file-for) [envelope icon](mailto:?body=https://www.legalfaq.ai/faqs/what-are-the-steps-involved-in-filing-for-bankruptcy-in-pennsylvania-and-what-are-the-different-types-of-bankruptcy-that-individuals-and-businesses-can-file-for)

## Related posts

[![](https://www.legalfaq.ai/hubfs/LegalFAQ/illinois-legal-faqs.jpg)](https://www.legalfaq.ai/faqs/what-is-the-process-for-filing-for-bankruptcy-in-illinois-and-what-are-the-different-types-of-bankruptcy-available)

[Illinois](https://www.legalfaq.ai/faqs/tag/illinois)

### [What is the process for filing for bankruptcy in Illinois and what are the different types of bankruptcy available?](https://www.legalfaq.ai/faqs/what-is-the-process-for-filing-for-bankruptcy-in-illinois-and-what-are-the-different-types-of-bankruptcy-available)

[![](https://www.legalfaq.ai/hubfs/LegalFAQ/florida-legal-faqs.jpg)](https://www.legalfaq.ai/faqs/what-is-the-process-for-filing-for-bankruptcy-in-florida-and-what-types-of-bankruptcy-are-available)

[Florida](https://www.legalfaq.ai/faqs/tag/florida)

### [What is the process for filing for bankruptcy in Florida, and what types of bankruptcy are available?](https://www.legalfaq.ai/faqs/what-is-the-process-for-filing-for-bankruptcy-in-florida-and-what-types-of-bankruptcy-are-available)

[![](https://www.legalfaq.ai/hubfs/LegalFAQ/florida-legal-faqs.jpg)](https://www.legalfaq.ai/faqs/what-is-the-process-for-filing-for-bankruptcy-in-florida-and-what-type-of-bankruptcy-should-i-consider)

[Florida](https://www.legalfaq.ai/faqs/tag/florida)

### [What is the process for filing for bankruptcy in Florida, and what type of bankruptcy should I consider?](https://www.legalfaq.ai/faqs/what-is-the-process-for-filing-for-bankruptcy-in-florida-and-what-type-of-bankruptcy-should-i-consider)

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Chris Battis",
    "url" : "https://www.legalfaq.ai/faqs/author/chris-battis"
  },
  "datePublished" : "1970-01-01T00:00:00.000Z",
  "headline" : "What are the steps involved in filing for bankruptcy in Pennsylvania, and what are the different types of bankruptcy that individuals and businesses can file for?",
  "image" : [ "https://www.legalfaq.ai/hubfs/LegalFAQ/pennsylvania-legal-faqs.jpg" ],
  "mainEntityOfPage" : {
    "@id" : "https://www.legalfaq.ai/faqs/what-are-the-steps-involved-in-filing-for-bankruptcy-in-pennsylvania-and-what-are-the-different-types-of-bankruptcy-that-individuals-and-businesses-can-file-for",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject"
    },
    "name" : "LegalFAQ.ai"
  }
}
```

```json
{
  "@context" : "http://schema.org",
  "@type" : "Article",
  "author" : {
    "@type" : "Person",
    "name" : [ "Chris Battis" ],
    "url" : "https://www.legalfaq.ai/faqs/author/chris-battis"
  },
  "datePublished" : "1970-01-01T00:00:00+0000",
  "description" : "Learn the essential steps involved in filing for bankruptcy in Pennsylvania with Legal Faqs' latest blog post. Discover the different types of bankruptcy for individuals and businesses to file, and gain a better understanding of bankruptcy proceedings. Find out how Legal Faqs can help guide you through the bankruptcy process with peace of mind.",
  "headline" : "What are the steps involved in filing for bankruptcy in Pennsylvania, and what are the different types of bankruptcy that individuals and businesses can file for?",
  "image" : "https://www.legalfaq.ai/hubfs/LegalFAQ/pennsylvania-legal-faqs.jpg",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : ""
    },
    "name" : "LegalFAQ.ai"
  },
  "url" : "https://www.legalfaq.ai/faqs/what-are-the-steps-involved-in-filing-for-bankruptcy-in-pennsylvania-and-what-are-the-different-types-of-bankruptcy-that-individuals-and-businesses-can-file-for"
}
```