Pennsylvania Bankruptcy Guide

Complete guide to filing bankruptcy in Pennsylvania, including current median income requirements, Pennsylvania's various property exemptions, bankruptcy court information, and how to find qualified bankruptcy attorneys throughout Pennsylvania.

Pennsylvania Median Income for Bankruptcy (2026)

To qualify for Chapter 7 bankruptcy in Pennsylvania, your household income must be below these median income levels. If your income exceeds these amounts, you may still qualify through the means test or need to file Chapter 13 instead.

Household Size	Annual Median Income	Monthly Median Income
1 person	$61,744	$5,145
2 people	$78,327	$6,527
3 people	$91,356	$7,613
4 people	$107,981	$8,998
5 people	$116,981	$9,748
6 people	$125,981	$10,498

Note: For households larger than 4, add $9,000 per additional person. These figures are updated annually by the U.S. Trustee Program.

Calculate Your Pennsylvania Eligibility

Pennsylvania Bankruptcy Exemptions

Pennsylvania does not have a traditional homestead exemption like many other states. Instead, Pennsylvania offers various specific property exemptions. Pennsylvania filers must use federal bankruptcy exemptions, which often provide better overall protection than the limited state exemptions available.

Pennsylvania Homestead Exemption

None under Pennsylvania state law. Must use federal exemptions: $27,900 ($55,800 for married couples).

Unlike most states, Pennsylvania does not provide a homestead exemption under state law. Pennsylvania filers must use federal bankruptcy exemptions, which allow you to protect up to $27,900 of equity in your primary residence ($55,800 for married couples filing jointly).

Any unused portion of the federal homestead exemption can be added to the federal wildcard exemption to protect other property, making the federal exemption system quite flexible for Pennsylvania residents.

Federal Exemptions for Pennsylvania Filers

Since Pennsylvania requires the use of federal exemptions, here's what you can protect:

Federal Bankruptcy Exemptions:

• Homestead: $27,900 ($55,800 for married couples filing jointly)
• Vehicle: $4,450 per person
• Household Goods: $700 per item, up to $14,875 total for furniture, appliances, clothing, books, animals, crops, and musical instruments
• Jewelry: $1,875
• Tools of Trade: $2,800 for implements, books, and tools of your trade or profession
• Wildcard: $1,475 plus up to $13,950 of unused homestead exemption (total potential of $15,425 for any property)
• Health Aids: Professionally prescribed health aids are fully exempt
• Personal Injury Awards: Up to $27,900 (excluding pain and suffering and pecuniary loss)
• Wrongful Death Awards: Amount needed for support

Other Protected Assets

• Retirement Accounts: Fully protected including 401(k), IRA, pension plans, Keogh plans, and government retirement benefits
• Public Benefits: Social Security, unemployment compensation, workers' compensation, veteran's benefits, disability benefits
• Life Insurance: Unmatured life insurance contract (except credit insurance policy) and up to $14,875 in loan value
• College Savings: 529 education savings plans and Coverdell education savings accounts
• Alimony and Child Support: Alimony and child support payments needed for support

Filing Bankruptcy in Pennsylvania

Chapter 7 Bankruptcy in Pennsylvania

Chapter 7 bankruptcy is commonly filed throughout Pennsylvania. The process typically takes 3-4 months from filing to discharge and eliminates most unsecured debts including credit cards, medical bills, personal loans, and past-due utility bills.

To qualify for Chapter 7 in Pennsylvania, you must pass the means test by having income below the Pennsylvania median or by showing that after allowable expense deductions, you lack sufficient disposable income to fund a Chapter 13 repayment plan. You must also complete credit counseling from an approved agency within 180 days before filing.

Pennsylvania's requirement to use federal exemptions often works to filers' advantage, as federal exemptions provide good protection for most common assets, especially with the flexible wildcard exemption.

Learn more about Chapter 7 bankruptcy →

Chapter 13 Bankruptcy in Pennsylvania

Chapter 13 bankruptcy allows Pennsylvania residents to keep property while repaying some or all debts through a court-approved 3-5 year payment plan. This option is particularly beneficial if you're behind on mortgage or car payments and want to catch up while stopping foreclosure or repossession.

Chapter 13 is especially useful in Pennsylvania if your income is too high to qualify for Chapter 7, if you have significant non-exempt equity in your home or other property, or if you have priority debts like recent taxes or domestic support arrears. Your monthly payment is based on your disposable income after allowable living expenses.

Learn more about Chapter 13 bankruptcy →

Bankruptcy Courts in Pennsylvania

Pennsylvania is divided into three federal bankruptcy court districts:

Eastern District of Pennsylvania

Main Courthouse: Philadelphia (also Reading)

Covers eastern Pennsylvania including Philadelphia and its suburbs (Bucks, Chester, Delaware, Montgomery counties), plus Berks, Lancaster, Lehigh, Northampton, and other eastern counties.

Court locations: Philadelphia and Reading.

Middle District of Pennsylvania

Main Courthouses: Harrisburg, Wilkes-Barre, Williamsport

Covers central Pennsylvania including Harrisburg (Dauphin County), Wilkes-Barre/Scranton (Luzerne and Lackawanna counties), Williamsport, and the State College area. This district covers a large geographic area of central PA.

Court locations: Harrisburg, Wilkes-Barre, and Williamsport.

Western District of Pennsylvania

Main Courthouses: Pittsburgh, Erie

Covers western Pennsylvania including Pittsburgh (Allegheny County), Erie, Johnstown, and surrounding western counties. The Pittsburgh division is the busiest in this district.

Court locations: Pittsburgh and Erie.

You must file in the district where you have lived for the greater part of the 180 days before filing. Visit the U.S. Courts website for specific court locations, filing procedures, and local rules.

Pennsylvania Residency Requirements

To use federal bankruptcy exemptions in Pennsylvania, you must have been domiciled (legally residing) in Pennsylvania for at least 730 days (2 years) before filing. If you've lived in Pennsylvania for less than 2 years, you must use the exemptions from the state where you lived for the 180 days immediately before the 2-year period.

Since Pennsylvania requires the use of federal exemptions (state exemptions are very limited), most Pennsylvania residents who meet the residency requirement benefit from the federal exemption system's flexibility.

Find a Pennsylvania Bankruptcy Attorney

Most Pennsylvania bankruptcy attorneys offer free initial consultations. Given the complexity of federal exemptions and Pennsylvania's unique requirement to use them, consulting with an experienced Pennsylvania bankruptcy attorney is highly recommended.

What a Pennsylvania Bankruptcy Attorney Can Do

• Determine which bankruptcy chapter is right for your financial situation
• Maximize federal exemptions to protect your home, vehicles, and other assets
• Strategically use the wildcard exemption to protect additional property
• Navigate Pennsylvania-specific bankruptcy procedures and local court rules
• Complete and file all required bankruptcy paperwork correctly
• Represent you at the 341 meeting of creditors
• Handle any objections from creditors or the bankruptcy trustee
• Guide you through the entire process from filing to discharge

Cost of Filing Bankruptcy in Pennsylvania

Chapter 7 bankruptcy attorney fees in Pennsylvania vary by location:

• Philadelphia area: $1,200 to $2,000 plus $338 filing fee
• Pittsburgh area: $1,000 to $1,800 plus $338 filing fee
• Other Pennsylvania areas: $900 to $1,500 plus $338 filing fee

Chapter 13 attorney fees typically range from $3,000 to $4,500 plus a $313 filing fee. In Chapter 13, attorney fees are usually paid through your repayment plan rather than upfront.

Many Pennsylvania attorneys offer payment plans for Chapter 7 to make bankruptcy more accessible.

Pennsylvania-Specific Bankruptcy FAQs

Why doesn't Pennsylvania have a homestead exemption?

Pennsylvania is one of the few states without its own homestead exemption under state law. However, Pennsylvania filers must use federal bankruptcy exemptions, which provide a $27,900 homestead exemption ($55,800 for married couples). This federal exemption often provides better overall protection than many state exemption systems.

Can I keep my house in Pennsylvania bankruptcy?

It depends on your equity. Under federal exemptions, you can protect up to $27,900 of equity ($55,800 for married couples). If you have more equity than this and can't protect it with the wildcard exemption, you may need to file Chapter 13 to keep your home or consider other options with your attorney.

Can I keep my car in Pennsylvania bankruptcy?

Yes, in most cases. Federal exemptions protect up to $4,450 of equity per person in a motor vehicle. If you owe more than your car is worth or have minimal equity, you can typically keep it by continuing to make payments through a reaffirmation agreement in Chapter 7.

What is the wildcard exemption in Pennsylvania bankruptcy?

The federal wildcard exemption allows you to protect $1,475 of any property, plus you can add any unused portion of your homestead exemption (up to $13,950) to the wildcard. This means you could potentially protect up to $15,425 of any property if you don't own a home or have minimal home equity. This is extremely useful for protecting cash, bank accounts, or other valuable property.

Can I protect my 401(k) in Pennsylvania bankruptcy?

Yes. Retirement accounts including 401(k) plans, IRAs, pensions, and other qualified retirement plans are fully protected under federal law in Pennsylvania bankruptcy. These funds are completely exempt from creditors.

Related Resources