📅 2026 Update: Changes in Bankruptcy Fees and Procedures

Since the original article on Pennsylvania Bankruptcy was published, several important updates have occurred in bankruptcy law and procedures. Updates include changes to filing fees for various bankruptcy chapters and new guidelines that may impact both individuals and businesses seeking relief from debt. The original article continues further down the page, covering essential topics in detail.

💰 Updated Bankruptcy Filing Fees

As of December 1, 2023, bankruptcy filing fees have been adjusted for different chapters. The Chapter 7 filing fee has risen to $338, while the Chapter 11 fee has increased to $1,738. The Chapter 13 fee remains at $313.

These updates are crucial for anyone considering filing for bankruptcy in Pennsylvania.

🏡 Review of Exemptions

The homestead exemption is a significant aspect of bankruptcy. While the original article might focus on Pennsylvania's laws, it's important to note that other states, like Minnesota, have increased their homestead exemption to $540,000 for residential properties as of July 1, 2026. This exemption protects homeowners from losing their primary residence during bankruptcy.

⏳ Processing Times Remain Steady

For those filing for Chapter 7 bankruptcy, the discharge is typically granted within three to six months of filing. For Chapter 13 bankruptcy, the repayment plan lasts between three to five years, depending on income and debt levels. These timelines are crucial for individuals planning their financial futures.

📅 Important Deadlines

The means test application must be completed before filing for Chapter 7 bankruptcy. Additionally, debtors must attend a 341 meeting with creditors, usually scheduled about a month after filing. Staying aware of these deadlines can help prevent complications in the bankruptcy process.

📌 Key Points Summary

  • 💰 Filing fees for Chapter 7 and Chapter 11 have increased.
  • 🏡 Homestead exemptions are critical for protecting assets.
  • ⏳ Processing times remain consistent for Chapter 7 and Chapter 13 bankruptcies.
  • 📅 Deadlines for means testing and creditor meetings are essential to follow.

💡 Tips for Navigating Bankruptcy

Reviewing your unique financial situation with an attorney is important for understanding your options. Here are practical steps to consider when dealing with bankruptcy.

📝 Complete the Means Test

The means test determines whether you qualify for Chapter 7 bankruptcy based on your income and expenses. Make sure to gather all necessary financial documents before starting this process.

💳 Understand Filing Fees

Filing fees have changed, so be prepared to pay $338 for Chapter 7 and $1,738 for Chapter 11. Knowing these costs upfront can help you budget more effectively for your bankruptcy filing.

🏠 Check Your State's Exemptions

Each state has unique exemptions that protect certain assets during bankruptcy. It’s crucial to understand these laws to safeguard your property effectively.

📅 Keep Track of Important Dates

Missing deadlines can lead to complications or dismissal of your case. Be diligent about attending the 341 meeting and completing the means test before filing.

📖 Complete Required Education Courses

Before receiving a discharge, you must complete a financial management course. This requirement is designed to help you manage your finances better in the future.

🆓 Utilize Free Resources

Consider reaching out to legal aid organizations for free or low-cost assistance. These resources can provide valuable guidance throughout the bankruptcy process.

🏆 Top Bankruptcy Services Ranked by User Reviews (2026)

This section highlights services relevant to bankruptcy and debt relief, based on Trustpilot data as of October 2026. Ratings can change, and while high scores indicate positive experiences, they may not reflect the full picture since unhappy customers often leave more reviews.

🥇 1. National Debt Relief

National Debt Relief has been rated 4.5. It is known for providing debt relief services and consumer financial assistance. However, some users mention unexpected fee deductions and administrative charges, which may affect the overall experience.

🥈 2. LawDepot

LawDepot holds a 4.0 rating. This service specializes in legal document preparation and offers affordable legal forms. Users appreciate the ease of use, but there are complaints about limited customer support and occasional document errors, which could impact the accuracy of important filings.

🆓 Free Government and Nonprofit Help

Legal aid organizations offer free or low-cost assistance, and the U.S. Trustee Program provides resources on bankruptcy procedures. These options can be particularly helpful for individuals seeking guidance without the financial burden of hiring an attorney.

🔎 Considerations When Choosing a Bankruptcy Service

  • 💵 Fees associated with services and any potential hidden costs.
  • 📜 Types of services offered, such as document preparation or counseling.
  • ⭐ User reviews and overall ratings on platforms like Trustpilot.
  • 🕒 Processing times for services and how they align with your timeline.
  • 💬 Customer support availability for addressing questions or concerns.

❓ Frequently Asked Questions

❓ What is the means test for Chapter 7 bankruptcy?

The means test assesses your income and expenses to determine if you qualify for Chapter 7 bankruptcy. It is a necessary step before filing.

🏠 Can I keep my house during bankruptcy?

You may be able to keep your home through the homestead exemption, which protects a portion of your home equity during bankruptcy proceedings. The specifics depend on your state's laws.

⏳ How long does bankruptcy take?

Typically, Chapter 7 bankruptcy can be discharged within three to six months, while Chapter 13 bankruptcy plans last between three to five years.

📅 What happens at the 341 meeting?

The 341 meeting is where creditors can ask questions about your financial situation. It's critical to attend this meeting after filing for bankruptcy.

💳 Will bankruptcy affect my credit score?

Yes, bankruptcy can impact your credit score and will remain on your credit report for up to 10 years. However, rebuilding credit is possible through timely payments and secured credit cards.

🏛️ What resources are available for bankruptcy assistance?

Free resources include legal aid organizations and the U.S. Trustee Program, which provide guidance on bankruptcy and financial management.

⚖️ Recent Court Rulings in Bankruptcy Cases

Recent court rulings reflect ongoing developments in bankruptcy law and its impact on individuals and businesses. These decisions can influence how bankruptcy cases are handled and what protections are available to debtors.

For more insights on current rulings, check out more rulings on the news page.

End of October 2026 Update






 



Pennsylvania Bankruptcy Law



 

Pennsylvania Bankruptcy


The state of Pennsylvania bankruptcy law closely reflects the federal law.  However, Pennsylvania mandates some of the more strict policies around entitled exemptions than other states.  PA Bankruptcy is no easy process, and an individual or family may even suffer for awhile during bankruptcy.  Yet, the laws are not in place to stop people from filing Pennsylvania bankruptcy, and the process of PA bankruptcy can often save someone’s credit in the long run. 



 



Like most states, Pennsylvania requires a person to attend a credit counseling course six months before they register for Pennsylvania bankruptcy.  Additionally, a person must also attend a debtor education course before a final settlement is agreed upon.  



 



Pennsylvania Bankruptcy : Personal and Corporation



 



Both individuals and corporations can file for Pennsylvania bankruptcy.  Depending on a family’s circumstances and means for income, they may choose or be forced to file for Chapter 7 or Chapter 13.  If a corporation needs time to reorganize their finances in the wake up economic trouble, it may consider filing for Chapter 11.  



 



PA Bankruptcy : Chapter 7



 



Filing for Chapter 7 within the state of Pennsylvania is generally harder compared to other states.  This type of PA bankruptcy is often referred to as straight or liquidation, and the person or must have a significant amount of unsecured debt and lack of means for income.  



 



Before getting approved to file Chapter 7, a person or family must pass a means test.  The test establishes that the family’s income falls below the state average.  The unemployment rate is quite high in Pennsylvania at 8.7%, and the average household income is $49,245.  If the family qualifies for Chapter 7, their exemptions are also limited:



 



• $300 for property



• All personal earnings



• Clothing



• Veteran benefits



 



PA Bankruptcy : Chapter 11



 



If a corporation is facing economic hardship, it may opt to file for Chapter 11.  This type of Pennsylvania bankruptcy allows the company to reorganize its finances, employees, and logistics in order to reduce debt.  The owner of the company often oversees the reorganization, and the only asset that may be in trouble is the value of the corporation’s stock.  



 



PA Bankruptcy : Chapter 13



 



If a judge and creditor deduce that a family can make structured payments over the next three to five years in order to pay up to 25% of the net debt, a family will file Chapter 13 bankruptcy.  This type of bankruptcy is also beneficial to families with a lot of property.  The property is usually protected from foreclosure during a Chapter 13.  



 



Taxes



 



A creditor may collect state and federal tax returns in a Chapter 7, but the assets usually come back to you in a Chapter 13.  Additionally, backed taxes owed to the IRS or other collection company will not be waived.  



 



Filing for Pennsylvania Bankruptcy



 



It’s always a good idea to hire an attorney when thinking about filing for Pennsylvania bankruptcy.  You can always go through a state filing service, but a lawyer will provide you with necessary help.  They can help you file the right documents and fees at the right time, and they can help you reach the best possible settlement with the creditors.