Find Bankruptcy Lawyers Near You in Greensburg, PA

The cost of hiring a bankruptcy lawyer in Greensburg, Pennsylvania, depends on the complexity of your case and the chapter you file. For a straightforward Chapter 7 case, attorney fees generally fall between $1,200 and $2,500, with the court filing fee of $338 added on top. Chapter 13 cases are more expensive due to the longer duration and plan administration, with attorney fees ranging from $3,000 to $5,000, plus the $313 filing fee. Many lawyers offer payment plans that allow you to pay the fee in installments before filing, and some may accept credit cards. Pro bono legal services are available through organizations like the Allegheny County Bar Foundation for individuals with very low income.

This information is general and does not constitute legal advice. Bankruptcy laws and fee structures can change, and individual circumstances vary widely. You should consult with a qualified bankruptcy lawyer in Greensburg to obtain specific advice tailored to your financial situation.

Bankruptcy law provides individuals and businesses in Greensburg, Pennsylvania, with a legal path to address overwhelming debt and obtain a financial fresh start. The three primary chapters available are Chapter 7, Chapter 13, and Chapter 11. Chapter 7, often called liquidation bankruptcy, is designed for individuals or businesses with limited income who cannot repay their debts. Under this chapter, a trustee may sell non-exempt assets to pay creditors, and most unsecured debts are discharged within three to six months. Chapter 13, or reorganization bankruptcy, is for individuals with a regular income who can commit to a three-to-five-year repayment plan to catch up on mortgages, car loans, or other debts. Chapter 11 is typically used by businesses, but high-income individuals may also qualify; it allows for more complex restructuring of debts and operations. Choosing the right chapter depends on your income, asset value, debt type, and financial goals—a Greensburg bankruptcy lawyer can evaluate your specific situation to determine which chapter offers the most appropriate relief.

Pennsylvania law allows residents to choose between state and federal bankruptcy exemptions when filing for bankruptcy. This choice can significantly impact which assets you can protect. Under Pennsylvania state exemptions, the homestead exemption is limited to $300,000 in equity for real property used as a residence, but only if the property is held as tenants by the entireties with a spouse. For single filers, the homestead exemption is not available under state law, making the federal exemption system often more attractive. The vehicle exemption under Pennsylvania law is $3,325 of equity in one motor vehicle. The wildcard exemption under Pennsylvania law is $600, plus up to $10,000 of unused homestead exemption if you are married and filing jointly. Federal exemptions, by contrast, offer a $27,900 homestead exemption (which can be used for any property), a $4,450 vehicle exemption, and a $1,475 wildcard exemption plus up to $13,950 of unused homestead exemption. Specific Pennsylvania bankruptcy exemption statutes are found in Title 42 of the Pennsylvania Consolidated Statutes, Sections 8123 through 8127. A Greensburg bankruptcy lawyer can help you calculate which exemption system protects more of your assets.

The means test is a critical calculation that determines whether you qualify for Chapter 7 bankruptcy. This test compares your current monthly income—averaged over the six months before filing—to the median income for a household of the same size in Pennsylvania. As of 2024, the median annual income for a single-earner household in Pennsylvania is approximately $65,000; for a family of four, it is roughly $90,000. If your income is below the median, you automatically pass the means test and can file Chapter 7. If your income exceeds the median, you must complete a detailed calculation of your disposable income after subtracting allowed living expenses and secured debt payments. If your disposable income over five years is less than $8,175, you still qualify for Chapter 7. If it is between $8,175 and $13,650, you must pass a second test comparing your disposable income to a percentage of your total unsecured debt. If your disposable income exceeds $13,650, you are presumed to have the ability to repay creditors and must file Chapter 13 instead. A Greensburg bankruptcy lawyer can perform this calculation accurately using the official forms and IRS expense standards.

When you file for bankruptcy in the United States Bankruptcy Court for the Western District of Pennsylvania, which serves Greensburg, an automatic stay immediately goes into effect. This court order stops all collection activities, including phone calls from creditors, wage garnishments, foreclosure proceedings, repossession efforts, and lawsuits. The automatic stay remains in place until the bankruptcy case is closed, dismissed, or the court grants a creditor relief from the stay. The timeline from filing to discharge varies by chapter. For Chapter 7, the process typically takes 90 to 120 days, with a discharge of most debts issued about four months after filing. For Chapter 13, the repayment plan lasts three to five years, and the discharge is granted after you complete all plan payments. Before you can receive a discharge, you must complete two mandatory courses: a pre-filing credit counseling session from an approved agency within 180 days before filing, and a post-filing debtor education course before the discharge is entered. These courses can be completed online or by phone and typically cost $20 to $50 each. A Greensburg bankruptcy lawyer will guide you through each step and ensure all deadlines are met.

The costs of filing bankruptcy in Greensburg include court filing fees, attorney fees, and course fees. The filing fee for Chapter 7 is $338, and for Chapter 13 it is $313, as of 2024. These fees are set by the federal judiciary and must be paid to the court, though you may request to pay in installments if you file a motion with the court. Attorney fees for Chapter 7 in the Greensburg area typically range from $1,200 to $2,500 for a straightforward case, while Chapter 13 attorney fees are higher, often ranging from $3,000 to $5,000, because of the longer duration and more complex plan administration. Many bankruptcy lawyers offer payment plans that allow you to pay attorney fees in installments before filing. Pro bono resources are available through organizations such as the Allegheny County Bar Foundation or the Pennsylvania Legal Aid Network, though eligibility is based on income and asset limits. If you cannot afford an attorney, you may qualify for free legal assistance through these programs. It is important to note that all fees must be disclosed to the court, and your lawyer cannot charge you more than what is approved by the bankruptcy judge.

Life after bankruptcy involves understanding how long the filing affects your credit and what steps you can take to rebuild. A Chapter 7 discharge remains on your credit report for ten years from the filing date, while a Chapter 13 discharge remains for seven years. During this time, you can begin rebuilding credit by obtaining a secured credit card, making small purchases and paying the balance in full each month, and ensuring all post-bankruptcy bills are paid on time. Some debts are not dischargeable in bankruptcy, meaning you remain legally obligated to pay them even after your case closes. These include most student loans (unless you can prove undue hardship in an adversary proceeding), recent income taxes (less than three years old or filed late), child support and alimony obligations, debts for personal injury caused by drunk driving, and fines or penalties owed to government agencies. A Greensburg bankruptcy lawyer can explain which of your specific debts may survive bankruptcy and help you plan for managing them going forward. With careful financial planning and responsible credit use, many individuals find that their credit score improves significantly within two to three years after discharge.