John R.K. Solt, P.C. John R.K. Solt, P.C.2026-04-01T13:21:39Zhttps://www.jrksoltlawoffice.com/feed/atom/WordPress/wp-content/uploads/sites/1605012/2025/05/cropped-JohnRKSolt-site-icon-32x32.pngOn Behalf of John R.K. Solt, P.C.<![CDATA[Can you keep your car and home after filing for bankruptcy in Pennsylvania?]]>https://www.jrksoltlawoffice.com/?p=468782026-03-18T22:42:49Z2026-04-01T13:21:39ZProtecting your assets through Chapter 7
Under federal law, you can keep your property if your equity meets legal exemptions. Equity is simply your home’s market value minus what you still owe on the mortgage.
The Federal Homestead Exemption allows you to protect up to $31,575 in equity as a single filer. If your equity is below this limit, the bankruptcy trustee cannot sell your home to pay creditors.
As for cars, you can protect up to $5,025 in vehicle equity. If you rent or have very little home equity, you can use a Wildcard Exemption to add up to $17,475 in additional protection. This often allows you to keep cars worth $20,000 or more, even if you paid them off fully.
Catching up and reducing costs with Chapter 13
If you are behind on payments or have too much equity to qualify for Chapter 7, Chapter 13 offers an alternative.
For houses, Chapter 13 allows you to take your missed payments and stretch them out over a manageable three-to-five-year plan. As long as you make these payments, the bank cannot foreclose on your home.
On the other hand, if your car is worth much less than what you owe, Chapter 13 may allow for a cramdown. This reduces your loan balance to the car’s actual market value, potentially saving you thousands of dollars while ensuring you keep your keys.
Moving forward with no worries
Bankruptcy can be a legal tool that you can use to have a fresh start with your finances. However, the nuances of federal law can be confusing to navigate alone. Before taking action, seek legal advice to gain the guidance you need in securing your future. A Pennsylvania bankruptcy attorney can review your case and offer options that apply to your situation.]]>On Behalf of John R.K. Solt, P.C.<![CDATA[Will filing for bankruptcy stop wage garnishment in Pennsylvania?]]>https://www.jrksoltlawoffice.com/?p=468762026-03-18T22:42:19Z2026-03-18T09:54:08ZHow bankruptcy stops garnishment
When you file for bankruptcy in Pennsylvania, an automatic stay takes effect. This legal injunction immediately halts most collection actions, including existing wage garnishment for consumer debts like credit cards and medical bills.
However, the stay has limitations. Garnishments for child support or alimony generally continue unaffected by the stay. Additionally, if you have non-dischargeable debt, garnishment may resume once the bankruptcy case closes.
Why the type of your filing matters
You have two options when filing for bankruptcy, which are Chapter 7 and Chapter 13. While both stop garnishment, they discharge underlying debt differently. Chapter 7 can wipe out your debts entirely, removing garnishment permanently.
Meanwhile, Chapter 13 involves a three to five-year repayment plan. The garnishment stops, and you pay back a portion of your debt through a court-approved plan.
How Pennsylvania law offers unique protections
In most states, if you owe a credit card company money, they can sue you. In Pennsylvania, the landscape is different. Most regular creditors cannot garnish your wages. Even if they sue you and win, they cannot force your employer to send them part of your check.
However, Pennsylvania law does allow wage garnishment for these obligations:
Domestic support
Unpaid rent for a residential lease
Student loans
Federal and state taxes
Court-ordered payments related to a crime.
Even if a creditor cannot garnish your wages, they can still freeze your bank account once your employer deposits your paycheck. This makes the federal protection of bankruptcy vital if you have a judgment against you.
Taking the first step toward relief
While bankruptcy is a right designed to give honest people a fresh start, the filing process requires precision to ensure your assets remain protected. Consider consulting with a Pennsylvania bankruptcy attorney to learn more about your options.]]>