If you are drowning in debt — credit cards maxed out, collection agencies calling non-stop — Wilkes-Barre bankruptcy attorney Jason P. Provinzano, Esquire recorded this seven-part video series to walk you through Chapter 7 bankruptcy in Pennsylvania, one question at a time.
Each part is about a minute long. Each section below answers the question that part covers, in plain English, with Jason’s video right next to it. Watch the full series on our Videos page, or start with the overview of bankruptcy in Pennsylvania on our main bankruptcy page.
What is Chapter 7 bankruptcy in Pennsylvania?
Chapter 7 bankruptcy is designed to give people a fresh financial start. As Jason explains in Part 1, in most cases it eliminates credit card debt, medical bills, personal loans, utility arrears, repossession deficiency balances, and other unsecured types of debt.
Here is what surprises most people: you keep your things. You do not automatically lose your home, your car, or everything you have worked for. In fact, most of the Chapter 7 cases Jason files are considered “no-asset” cases — there are no assets for a trustee to sell. You list your assets, you exempt your assets, and you keep your assets. The U.S. Courts publish their own plain-English walkthrough in Chapter 7 Bankruptcy Basics, and our Chapter 7 bankruptcy page covers the process in full.
Part 1 — What Chapter 7 is, and what it wipes out.
Do I qualify for Chapter 7 if I have a job?
Very likely, yes — and thinking you earn too much is one of the biggest misconceptions Jason sees. You do not have to be unemployed or completely broke to qualify for Chapter 7. Most of the people he represents have full-time jobs — sometimes two jobs. They own a home with a mortgage. They drive a decent vehicle, usually with a car payment. And they still qualify.
The law looks at several factors: your household income, your family size, your expenses, and your overall financial circumstances. Even if your income is above the median income for a household of your size in Pennsylvania, that does not automatically disqualify you. It is also why Jason warns against trusting a random bankruptcy calculator on the internet — the real analysis is fact-specific.
Part 2 — You may qualify even when you think you don’t.
What is the Chapter 7 means test?
The means test sounds intimidating. It is really just one of the tools used to decide whether someone qualifies for Chapter 7. Here is how Jason walks through it in Part 3.
First, your income is examined over the last full six calendar months before you file. Then your household size is factored in, and that annualized income is compared against the applicable median income. If you are below the median, you generally pass that part of the test. If you are above it, you are not necessarily finished — certain allowable expenses and deductions can still be accounted for. Making good money does not automatically mean you cannot file a Chapter 7 case.
Part 3 — The means test, explained without the scare tactics.
What documents should I gather before filing Chapter 7?
Part 4 is the homework list — and it is shorter than people fear. Start with income information: pay stubs, tax returns for generally the last two years, and documentation of any other money coming into the household from any source.
Next is a list of your debts — credit cards, medical bills, loans, collection accounts, lawsuits. Jason makes this part easy by pulling your credit report from all three credit bureaus, so you do not have to go on a wild goose chase. Then comes information about your property: he pulls your deed and mortgage, and you review your vehicles, bank accounts, furniture, household goods, clothing, and jewelry together. He does not send you a packet to fill out alone — you go through the list over the phone or in person, along with your average monthly expenses. And if your paperwork is not organized, do not panic. Sorting that out is part of what a bankruptcy attorney does.
Part 4 — What to gather before we meet.
How much does it cost to file Chapter 7?
It feels backwards — you are broke, and filing costs money. Jason gets this question constantly, and in Part 5 he breaks the cost into two parts.
The first part is the case expenses. The court filing fee, Jason states, is $338 — that is what is paid to the court when the case is filed. There is also the credit counseling you complete online, and the credit report, each generally a couple of dollars. The second part is the attorney fee, which varies by case. His advice: do not choose your lawyer based on the cheapest price, because a mistake involving your house, your car, or your assets can cost far more than the fee saves.
His office can offer certain payment plans — with one firm limit. By law, the attorney fee must be paid in full before the case is filed. Once a case is filed, the firm cannot take a payment on that fee. So the planning happens up front, before anything is filed.
Part 5 — The filing fee, the small costs, and the attorney fee.
Will I lose my house or car in Chapter 7?
This is probably the biggest fear people bring to Jason’s office, and Part 6 answers it directly: filing Chapter 7 does not automatically mean you lose your house, your car, or everything you own. Bankruptcy law provides exemptions that protect certain property. In Pennsylvania, you can elect to use either the federal exemptions or the Pennsylvania exemptions. Which set applies — and how much it protects — depends on how your property is titled and how much equity you have in it.
One honest limit: if you are behind on your mortgage or car payments, Chapter 7 does not automatically solve that problem. Catching up on secured payments is what Chapter 13 bankruptcy is built for. Either way, the analysis happens before you file, not after. As Jason puts it: we never guess, and we never roll the dice. Before a Chapter 7 case is filed, you should know that your assets and your equity are protected.
Part 6 — Will I lose my house or car?
What happens the day you file Chapter 7?
Something pretty powerful, Jason says in Part 7: the automatic stay. In most cases, the moment your bankruptcy petition is filed, federal law puts an immediate stop to collection activity. That can include lawsuits, wage garnishments, repossessions, foreclosure proceedings, and sheriff sales — and creditors generally cannot keep harassing you or trying to collect debts covered by the stay.
There are exceptions, and Jason names them honestly. If you have filed bankruptcy before, the automatic stay might be limited — or might not go into effect at all — depending on how many cases you have filed and their timing. But for most people, filing provides immediate financial breathing room. After filing, there is one required meeting — the meeting of creditors, often called the 341 meeting — which for Middle District cases is held by Zoom. Sometimes, Jason says, the most important thing bankruptcy gives you on day one is peace of mind.
Part 7 — The automatic stay: day-one breathing room.
Questions about your situation?
Questions about your situation? Call 570-822-5771 for a free consultation. The Law Offices of Jason P. Provinzano, LLC is at 16 W. Northampton Street in Wilkes-Barre, and helps people across Northeastern and Central Pennsylvania.
General information only — not legal advice for a specific situation.
