Question 1

Will I lose my home if I file for bankruptcy?

Accepted Answer

In most cases, no. Pennsylvania law provides a homestead exemption that protects equity in your primary residence up to $25,150. If your home equity falls within this limit, it is fully protected in Chapter 7. If you are behind on mortgage payments, Chapter 13 allows you to catch up on arrears through a structured repayment plan while keeping your home. Bryan Keenan has helped hundreds of Pittsburgh homeowners save their properties through bankruptcy.

Question 2

How long does the bankruptcy process take?

Accepted Answer

Chapter 7 cases typically take 3 to 4 months from filing to discharge. You will attend one meeting of creditors about 30 days after filing, and the discharge usually comes 60 days after that. Chapter 13 cases involve a repayment plan lasting 3 to 5 years, depending on your income. The preparation phase before filing usually takes 1 to 3 weeks, depending on how quickly you can gather the required documents.

Question 3

What debts can be discharged in bankruptcy?

Accepted Answer

Chapter 7 and Chapter 13 can eliminate most unsecured debts, including credit card balances, medical bills, personal loans, utility arrears, and older income tax obligations (under certain conditions). Debts that generally cannot be discharged include recent tax debts, student loans (except in rare hardship cases), child support, alimony, and debts arising from fraud or DUI-related judgments.

Question 4

Will bankruptcy stop wage garnishment?

Accepted Answer

Yes. The moment your bankruptcy petition is filed with the court, an automatic stay goes into effect. This federal order immediately stops all wage garnishments, bank levies, creditor lawsuits, foreclosure proceedings, and collection calls. The automatic stay provides instant relief and gives you breathing room while your case proceeds.

Question 5

How much does it cost to file bankruptcy?

Accepted Answer

Court filing fees are $338 for Chapter 7 and $313 for Chapter 13. Attorney fees vary depending on case complexity, but Bryan Keenan is committed to keeping fees affordable and transparent. All costs are discussed during your free initial consultation so there are no surprises. For Chapter 13 cases, attorney fees can often be included in the repayment plan, reducing the upfront cost.

Question 6

What is the difference between Chapter 7 and Chapter 13?

Accepted Answer

Chapter 7 (liquidation bankruptcy) eliminates most unsecured debts in about 4 months. It is available to individuals whose income falls below the state median or who pass the means test. Chapter 13 (reorganization bankruptcy) creates a 3- to 5-year repayment plan that allows you to catch up on secured debts like mortgages and car loans while paying a portion of unsecured debts. Chapter 13 is often the better choice for homeowners facing foreclosure or people with income above the Chapter 7 threshold.

Question 7

Can I keep my car if I file for bankruptcy?

Accepted Answer

Yes, in the vast majority of cases. Pennsylvania's motor vehicle exemption protects vehicle equity up to a set amount. If you are current on your car loan, you can typically reaffirm the debt and continue making payments. If you are behind on payments, Chapter 13 can restructure the loan and help you catch up. Bryan will review your specific vehicle situation during your free consultation.

Question 8

How will bankruptcy affect my credit score?

Accepted Answer

Bankruptcy does appear on your credit report: Chapter 7 for 10 years and Chapter 13 for 7 years. However, many clients find that their credit score actually improves within 12 to 18 months after discharge because the debt-to-income ratio drops significantly. With responsible financial habits after bankruptcy, many former clients qualify for car loans within a year and mortgages within 2 to 3 years. Bryan provides guidance on rebuilding credit after discharge.

Question 9

Will my employer find out about my bankruptcy?

Accepted Answer

Bankruptcy filings are public records, but employers do not receive direct notification. The court only contacts your creditors and trustees. Your employer may become aware if there is an active wage garnishment that gets stopped, but federal law (11 U.S.C. Section 525) prohibits employers from firing or discriminating against you solely because you filed for bankruptcy.

Question 10

Can I file bankruptcy if I have a job?

Accepted Answer

Absolutely. Having a job does not prevent you from filing bankruptcy. For Chapter 7, your income must fall below the Pennsylvania median or you must pass the means test. If your income is too high for Chapter 7, Chapter 13 is specifically designed for people with regular income who need a structured repayment plan. Many of Bryan's clients are employed professionals who simply experienced an unexpected financial setback.

Question 11

Are retirement accounts protected in bankruptcy?

Accepted Answer

Yes. Federal law protects most retirement accounts in bankruptcy, including 401(k) plans, 403(b) plans, IRAs (up to approximately $1.5 million), pensions, and other qualified retirement funds. These accounts are fully exempt and creditors cannot access them through the bankruptcy process. This is one of the most important protections available to filers.

Question 12

Do I need to attend court for bankruptcy?

Accepted Answer

You will attend one mandatory proceeding called the Meeting of Creditors (also called a 341 meeting). This is not held in a courtroom but in a meeting room, and it typically lasts 5 to 10 minutes. The bankruptcy trustee will ask routine questions about your petition under oath. Creditors may attend but rarely do. Bryan attends this meeting with you and prepares you beforehand so you know exactly what to expect.

Bankruptcy Frequently Asked Questions