Where Do I File for Bankruptcy in Pennsylvania?

• Pennsylvania has three districts of the U.S. Bankruptcy Court. These are the Eastern District with court locations in Philadelphia and Allentown, the Middle District with court locations in Harrisburg and Wilkes-Barre and the Western District with court locations in Erie, Pittsburgh and Johnstown. Each district is responsible for certain counties, so file your bankruptcy proceeding in the court with jurisdiction over your county of residence. Contact the clerk of the bankruptcy court for hours of operation and other filing questions.
  
  

Is My Home Safe From Seizure Under Pennsylvania Law?

• While some states have homestead exemptions under their bankruptcy laws protecting the debtor's home, Pennsylvania does not include this provision in its laws. However, for married couples, any property held in "tenancy by the entirety" may qualify for exemption if debts are only owed by one spouse. Under federal law, you may keep a home worth up to $20,200.
  
  

What Qualifies for Exemption?

• Under Pennsylvania bankruptcy exemptions, personal property including clothing, uniforms, textbooks, Bibles, sewing machines and the rare few items of "tangible personal property at an international exhibit sponsored by U.S. government" are included. Unlike many other states, tools of the trade do not qualify for exemption, but business partnership properties do. Pensions of public employees are exempt, as are private benefits as long as they include a provision regarding that proceeds cannot be used to pay creditors. There is also a "wild card" exemption of $300 of any personal property of the petitioner's choosing. Since federal law is more generous in many regards, choosing a federal exemption rather than a Pennsylvania exemption may be of benefit.
  
  

What Must I Still Pay?

• Bankruptcy does not wipe out all financial obligations and let you start anew on everything. You are still liable for alimony and child support payments, student loans, back taxes, purchases deemed "luxury goods" worth over $550 bought within three months of filing for bankruptcy, $825 or less of cash advances incurred within 70 days of petitioning, government penalties and debts obtained by fraud.