• Bankruptcy leaves you without much cash in every state, including Pennsylvania.One Dollar - variations of Crumpled dollar image by PaulPaladin from Fotolia.com
  
  In the state of Pennsylvania, bankruptcy proceedings are handled in one of the three state bankruptcy courts. Pennsylvania bankruptcy laws are comprehensive and not very difficult to understand. If you are living in Pennsylvania and you are facing bankruptcy, you need to know these laws in order to make the process as smooth as possible.
  
  

Chapter 7 Bankruptcy

• Any adult is eligible for this form of bankruptcy if that person finds that his debts exceed his ability to pay. The person's assets will be sold to pay as much to creditors as possible. Afterwards, the debts are discharged. When filing for bankruptcy, certain assets are exempt, as described below. A husband and wife do not have to file jointly, but will receive double the exemptions if they do.
  
  

Chapter 13 Bankruptcy

• Chapter 13 bankruptcy requires that a person make payments in installments administered by a trustee. The advantages to Chapter 13 are that the debtor can potentially keep some of her assets while receiving extended time to pay debts and possibly a reduced amount to pay. Chapter 13 also suspends all debt collecting activities for a specified period. Individuals are eligible for Chapter 13 if they fall under a certain debt level, which changes every three years.
  
  

Exempt Assets

• In Pennsylvania, exempt property includes $17,425 in property (primary residence), $2,775 on a car, $450 on furniture and other goods for a $9,300 total value, $1,150 in jewelry, $925 additional exemption, plus any unused residential property exemption up to $8,725. Social security, unemployment compensation, welfare, veteran's administration, disability & support and certain pension benefits are also exempt.
  
  

Chapter 11 Bankruptcy

• Corporations that are incorporated in Pennsylvania are subject to Pennsylvania Chapter 11 bankruptcy laws. The debts limit for corporations are much higher, up to $10 million, but like smaller Chapter 7 bankruptcies, debts are usually discharged after assets have been sold.