Chapter 7 · Liquidation

The fastest path to a fresh start.

If most of your debt is credit cards, medical bills, or personal loans — and your income qualifies under the Pennsylvania means test — Chapter 7 discharges qualifying debt in about three to six months. You keep almost everything you own.

See if you Qualify (717) 718-7127
What Chapter 7 Actually Does

Keep what matters. Discharge what's crushing you.

Pennsylvania exemptions and federal exemptions protect ordinary working people. Most of my clients keep their home, car, retirement, and household goods — and walk away from credit cards, medical bills, and personal loans.

🛡️

What you keep

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What gets discharged

  • Credit card debtVisa, MasterCard, Amex, store cards — gone
  • Medical billsHospital, doctor, surgery, ambulance — gone. How medical debt is treated →
  • Personal loansPayday loans, signature loans — gone
  • Old utility billsDisconnected service balances — gone
  • Most lawsuit judgmentsMoney judgments — gone (judicial liens may be strippable)
  • Repossession deficiencyWhat you still owed after a car was taken — gone
  • Personal guaranteesOn business or commercial debts. Learn more →
The Process

What three to six months actually looks like.

Most Chapter 7 cases follow the same rhythm. Here's exactly what to expect, step by step.

  1. 01

    Initial consultation

    We sit down — in person or by phone — and look at your debts, income, and assets together. You leave knowing whether filing makes sense and what it would actually look like for you.

    Day 0
  2. 02

    Gather paperwork

    Six months of pay stubs, two years of tax returns, statements for every debt and asset. I give you a checklist so nothing is missed and your petition holds up.

    Week 1 – 3
  3. 03

    Required credit counseling

    A one-hour online course required by federal law. Costs about $25. You take it from home. It's a checklist item — but a non-negotiable one.

    Before filing
  4. 04

    We file your petition

    Filed electronically with the U.S. Bankruptcy Court for the Middle (or Eastern) District of PA. The automatic stay activates instantly — collectors must stop, garnishments halt, frozen accounts unfreeze.

    Filing day
  5. 05

    341 Meeting of Creditors

    A short virtual meeting with the court-appointed trustee — typically 5–15 minutes. I attend with you and prepare you thoroughly. Creditors rarely show up.

    ~30 days after filing
  6. 06

    Financial management course

    A second one-hour course, also from home. Required for the discharge to be entered.

    Within 60 days after filing
  7. 07

    Discharge order

    A federal court order eliminating your qualifying debt is mailed to you. It's over. Time to start rebuilding.

    ~3 – 6 months from filing
The Pennsylvania Means Test

"Do I qualify?" — the short version.

If your six-month average household income is below the Pennsylvania median for your household size, you qualify for Chapter 7 automatically. Above the median? A second-stage means test accounts for your actual expenses — and most clients who think they don't qualify, do.

Household of 1
$70,378
Household of 2
$85,290
Household of 3
$107,327
Household of 4
$132,379
Each add'l
+$11,100

Pennsylvania Census Bureau median family income figures published by the U.S. Trustee Program for cases filed between November 1, 2025 and March 31, 2026. Medians are updated periodically and apply to your six-month average household income on the date of filing. Source: U.S. Trustee Program · Census Bureau Median Family Income By Family Size.

Take the First Step

Wondering if Chapter 7 fits? Let's find out.

A confidential consultation is the fastest way to know whether Chapter 7 is right for you — and exactly what your case would look like. No obligation, no judgment.

Schedule Your Consultation Call (717) 718-7127