We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
If debt has become more than you can manage, bankruptcy may give you a fresh start or time to catch up. Kostrub Law Firm, PLLC is a bankruptcy attorney Pittsburgh-area residents can talk to from our office in Cecil Township. We explain how Chapter 7 and Chapter 13 work, what you could keep, and whether bankruptcy fits your situation at all. Sometimes it does not, and we will tell you that too.
What happens after you call: we ask a few questions about your debts, income, and any urgent dates such as a sheriff’s sale, then schedule a private meeting.
What bankruptcy is
Bankruptcy is a federal court process that lets people and businesses deal with debts they cannot pay. The two most common types for individuals are
- Chapter 7. Often called liquidation. A trustee (a person appointed to oversee the case) may sell property that is not protected, and many unsecured debts, like credit cards and medical bills, can be discharged. A discharge is a court order that wipes out your legal duty to pay certain debts.
- Chapter 13. A repayment plan that usually lasts three to five years. You keep your property and pay what you can afford through the trustee. Chapter 13 is often used to catch up on a mortgage or car loan.
Some debts usually cannot be discharged, such as most recent taxes, child support, and most student loans.
Pennsylvania and federal law that matters
- Bankruptcy Code, 11 U.S.C.. The same federal Code applies in every state, but local rules and state exemptions still matter.
- Where cases are filed. Cases for people in Washington and Allegheny counties are filed in the U.S. Bankruptcy Court for the Western District of Pennsylvania, in Pittsburgh.
- Credit counseling, 11 U.S.C. § 109(h). Before you file, you must generally complete a credit counseling course from an approved agency within the 180 days before filing. After filing, you must complete a debtor education course before you can receive a discharge.
- The means test, 11 U.S.C. § 707(b). This test compares your income to the Pennsylvania median for your household size. If your income is below the median, you generally qualify for Chapter 7. If it is above, a longer calculation of allowed expenses decides whether Chapter 7 is available.
- Automatic stay, 11 U.S.C. § 362. Filing creates the automatic stay, a court order that stops most collection activity right away. That includes most lawsuits, wage garnishments, and foreclosure sales. There are exceptions, and repeat filers may get limited protection.
- Exemptions, 11 U.S.C. § 522. Exemptions are laws that protect certain property from creditors. Pennsylvania lets filers choose either the federal exemption list or the Pennsylvania state exemptions. The state option can protect property held by spouses as tenants by the entireties (a form of joint ownership by married couples) against debts owed by only one spouse.
Common situations in Washington and Allegheny counties
People who reach out to a bankruptcy lawyer in Pittsburgh or Washington County often describe situations like these
- A Canonsburg homeowner has fallen behind on the mortgage and has a sheriff’s sale date set. Chapter 13 may allow a catch-up plan.
- A Bethel Park family faces credit card and medical debt after a job loss and wants to know if they pass the means test.
- A small business owner in South Fayette has personal debts tied to a failed company. Business debts raise separate questions, and our business law page covers structuring a company to limit personal exposure.
What happens if you don’t act
- Creditors can sue, win judgments, and garnish wages or freeze bank accounts.
- A mortgage default can lead to a sheriff’s sale of your home.
- Waiting too long can limit your choices. For example, once a sheriff’s sale happens, saving the home is much harder.
Facing a garnishment, lawsuit, or sheriff’s sale? Call (304) 982-1586 · Request a consultationAfter you call, we ask about urgent dates first, then set a confidential meeting.
How we handle it, step by step
- Confidential review. We go over your debts, income, property, and goals.
- Look at alternatives. We discuss options outside bankruptcy, such as negotiating with creditors, when they fit.
- Run the means test. We check whether Chapter 7 is available and compare it with Chapter 13.
- Plan exemptions. We decide which exemption list protects more of what you own.
- Prepare the petition. You complete credit counseling, and we prepare the petition and schedules (detailed lists of what you own and owe).
- File and attend the meeting of creditors. After filing, you attend a short meeting with the trustee, often called the 341 meeting. We prepare you and attend with you.
- Finish the case. You complete the debtor education course, and we follow the case through discharge or plan completion.
What to bring to your first meeting
- Recent pay stubs and the last two years of tax returns
- A list of all debts, with recent statements and collection letters
- Mortgage, car loan, and lease papers
- Any lawsuit papers, garnishment notices, or sheriff’s sale notices
- Bank and retirement account statements
- A list of what you own, including vehicles and valuables
- Your monthly household budget
Fees
We explain our fee approach before any work begins. We explain how we charge, and what to expect, at your first consultation.. Federal law requires a written agreement for bankruptcy services. The court filing fee is separate and paid to the court.
Who handles this
Bankruptcy matters are handled by Daniel B. Kostrub and Heather N. Kostrub. The firm has served the region.
- Daniel B. Kostrub concentrates on energy law and oil and gas matters. Bar admission:. Photo alt text: “Attorney Daniel B. Kostrub at the Kostrub Law Firm office.” Read Daniel B. Kostrub’s professional profile.
- Heather N. Kostrub focuses on estate planning and family and business succession. Bar admission:. Photo alt text: “Attorney Heather N. Kostrub in a client meeting room.” Read Heather N. Kostrub’s professional profile.
Frequently asked questions
Who qualifies for Chapter 7 bankruptcy in Pennsylvania?
Eligibility mainly depends on the means test. If your household income is below the Pennsylvania median for your household size, you generally qualify. If it is higher, allowed expenses are subtracted to see whether you have enough left to repay creditors. Prior bankruptcy filings can also affect timing.
Will I lose my house if I file bankruptcy in Pennsylvania?
Not necessarily. Exemptions may protect some or all of your home equity, and property owned with a spouse as tenants by the entireties may receive extra protection under the state exemption option. If you are behind on payments, Chapter 13 may let you catch up over time. You must keep paying the mortgage going forward.
Does bankruptcy stop wage garnishment?
In most cases, yes. The automatic stay generally stops garnishments as soon as the case is filed. Your employer and creditor must be notified. Some debts, such as domestic support obligations, are treated differently, so ask about your specific garnishment.
How long does a Chapter 7 case take?
Many Chapter 7 cases end with a discharge a few months after filing, assuming no objections or complications. Chapter 13 cases last for the length of the repayment plan, usually three to five years. Timing in the Western District of Pennsylvania can vary.
What is the meeting of creditors?
It is a short meeting, held under 11 U.S.C. § 341, where the trustee asks you questions under oath about your petition. Creditors may attend but often do not. You must bring photo ID and proof of your Social Security number. Your lawyer prepares you and attends with you.
Get clear answers about your debt
Call (304) 982-1586 or book a confidential meeting. After you call, we ask about any urgent dates, then meet to review your income, debts, and options. Office: Hours:
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
This page is general information, not legal advice. Reading it does not create an attorney-client relationship.