Frequently Asked Bankruptcy Questions in Philadelphia & new Jersey
Call Now: 215-735-3377
If you are struggling with debt, facing foreclosure, or considering bankruptcy in Pennsylvania, you likely have urgent questions.
This FAQ answers the most common concerns about Chapter 7, Chapter 13, foreclosure, credit, and working with The Parrish Law Firm. For answers specific to your situation, call 215‑735‑3377 to speak directly with Attorney Demetrius J. Parrish Jr.
General Bankruptcy Questions
What is bankruptcy?
Bankruptcy is a legal process that allows individuals and businesses overwhelmed by debt to either eliminate certain debts or reorganize them under court supervision. The goal is to give honest debtors a fresh financial start while treating creditors fairly. Different chapters of bankruptcy offer different tools depending on your income, assets, and goals.
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
-
Chapter 7 is typically a faster case (about 3–4 months) focused on wiping out unsecured debts like credit cards and medical bills, often while keeping most or all of your property through exemptions.
-
Chapter 13 is a 3–5 year repayment plan that lets you catch up on mortgage or car payments, pay required debts over time, and keep your assets while making one monthly payment you can afford.
​Attorney Parrish will help you compare both options based on your income, assets, and the types of debt you have.
Will I lose all my property if I file bankruptcy?
No. Most people who file bankruptcy in Pennsylvania keep all or most of their property. Exemption laws protect certain assets, such as equity in your home, a vehicle up to a certain amount, personal belongings, and retirement accounts. The right chapter and planning can help you protect what matters most.
To find out what you can protect in your specific situation, call 215‑735‑3377.
Qualifying for Bankruptcy in Pennsylvania
How do I know if I qualify for Chapter 7 Bankruptcy?
Eligibility for Chapter 7 is determined through a “means test” that looks at:
-
Your household income compared to state median income
-
Your regular living expenses
-
Your disposable income (what is left after allowed expenses)
​If your income is below certain levels, you often qualify. If it is higher, you may still qualify after a detailed analysis of your budget. Attorney Parrish can review your pay stubs, tax returns, and expenses to see whether Chapter 7 is an option.
When is Chapter 13 a better choice?
Chapter 13 may be better if you:
-
Are behind on your mortgage or car payments and want to catch up
-
Do not qualify for Chapter 7 because of income
-
Have significant non‑exempt assets you want to protect
-
Have tax debts or other obligations that need structured repayment
​In Chapter 13, you keep your property and pay what you can afford over time in a court‑approved plan.
Can I file bankruptcy if I am self‑employed or own a small business?
Yes. Self‑employed individuals and small business owners can often file Chapter 7 or Chapter 13, and some businesses may need Chapter 11. The best chapter depends on whether you want to keep operating, how your business is structured, and the nature of your debts.
Foreclosure, Homes, and Cars
Can bankruptcy stop a foreclosure in Pennsylvania?
Yes. Filing a bankruptcy case triggers an automatic stay that usually stops foreclosure proceedings and sheriff’s sales immediately. Chapter 13 is particularly powerful because it allows you to catch up on missed mortgage payments over three to five years while keeping your home, as long as you can afford the plan and ongoing payments.
Will I lose my home if I file Chapter 7?
Many homeowners keep their homes in Chapter 7, especially if:
-
They are current on mortgage payments, and
-
Their equity is covered by available exemptions.
If you are behind on your mortgage or have significant equity beyond what exemptions protect, Chapter 13 or another strategy may be a better fit.
Can bankruptcy help me keep my car?
Often, yes. Many people keep their cars in both Chapter 7 and Chapter 13:
-
In Chapter 7, you may be able to keep your car if your equity is within exemption limits and you stay current on the loan.
-
In Chapter 13, you can usually catch up on missed payments through your plan and stop repossession, and in some cases adjust the payment terms.
If you are facing foreclosure or repossession, call 215‑735‑3377 right away to discuss your options and deadlines.
Debts and Credit After Bankruptcy
Which debts can be eliminated in Chapter 7?
Most unsecured debts can be discharged in Chapter 7, including:
-
Credit cards
-
Medical bills
-
Personal loans and payday loans
-
Many old utility bills
-
Some older income tax debts
​Once discharged, creditors cannot legally collect those debts from you.
Which debts usually cannot be wiped out?
Certain debts are typically not discharged, such as:
-
Most student loans
-
Recent income tax debts
-
Child support and alimony
-
Government fines and certain court‑ordered obligations
-
Debts incurred through fraud or intentional misconduct
In Chapter 13, you may still be able to manage these debts more effectively through a structured payment plan.
How long will bankruptcy stay on my credit report?
-
A Chapter 7 bankruptcy can remain on your credit report for up to 10 years.
-
A Chapter 13 bankruptcy usually appears for up to 7 years from the filing date.
However, many people see their credit begin to improve within one to two years after their case, especially if they pay bills on time, use any new credit cautiously, and keep balances low.
The Bankruptcy Process
What happens at the Meeting of Creditors (341 Meeting)?
The Meeting of Creditors is a short, usually straightforward hearing where:
-
You answer questions under oath about your finances
-
The bankruptcy trustee reviews your petition and documents
-
Creditors rarely attend in consumer cases
Attorney Parrish will attend with you and prepare you so you know what to expect.
How long does a typical bankruptcy case take?
-
Chapter 7: Many cases are completed and discharged in about 3–4 months, assuming no major complications.
-
Chapter 13: Plans usually last 3–5 years, after which remaining eligible unsecured debts can be discharged.
​The timeline can vary based on your specific facts and the court’s schedule.
Do I have to go to court?
​Most consumer bankruptcy clients never see a judge in a courtroom. You must attend the 341 Meeting of Creditors, but many other steps are handled through paperwork and your attorney’s communication with the court and trustee.
Get Answers About Your Specific Situation
Call The Parrish Law Firm at 215‑735‑3377 to speak directly with Attorney Demetrius J. Parrish Jr. about:
-
Chapter 7 and Chapter 13 bankruptcy
-
Foreclosure and mortgage problems
-
Life after bankruptcy and rebuilding credit
-
How bankruptcy fits into your broader financial and estate planning
Your conversation is confidential and focused on giving you clear, practical next steps.
