Pennsylvania Bankruptcy Guide 2026
This content is for informational purposes only and does not constitute legal advice. Consult a licensed Pennsylvania attorney for advice specific to your situation.
Filing for bankruptcy in Pennsylvania can help you get a fresh financial start. This guide covers everything you need to know about Chapter 7 and Chapter 13 bankruptcy in Pennsylvania courts.
Quick Facts: Bankruptcy in Pennsylvania
| Requirement | Details | |
|---|---|---|
| Residency | Must live in Pennsylvania for at least 91 of the last 180 days | |
| Where to File | U.S. Bankruptcy Court, Eastern, Middle, or Western District of PA | |
| Filing Fee | Chapter 7: $338 | Chapter 13: $313 |
| Credit Counseling | Required within 180 days before filing | |
| Means Test | Required to qualify for Chapter 7 | |
| Exemptions | Pennsylvania allows state OR federal exemptions |
Types of Bankruptcy in Pennsylvania
Chapter 7 Bankruptcy
What it is: Chapter 7 is a "liquidation" bankruptcy that eliminates most unsecured debts in about 4-6 months.
Best for:
- People with little to no assets
- Those whose income is below the Pennsylvania median
- People who want a fresh start quickly
What happens:
- A trustee may sell non-exempt assets to pay creditors
- Most unsecured debts are discharged (eliminated)
- You keep exempt property
Chapter 13 Bankruptcy
What it is: Chapter 13 is a "reorganization" bankruptcy that sets up a 3-5 year repayment plan.
Best for:
- People with regular income
- Those who want to keep their home or car
- People who don't qualify for Chapter 7
What happens:
- You keep all your property
- You make monthly payments to a trustee
- Remaining debts are discharged after completing the plan
Do You Qualify for Chapter 7 in Pennsylvania?
The Means Test
To file Chapter 7 in Pennsylvania, your income must be below the Pennsylvania median income OR you must pass the "means test" calculation.
Pennsylvania Median Income (2024):
| Household Size | Annual Income |
|---|---|
| 1 person | $62,084 |
| 2 people | $76,461 |
| 3 people | $91,699 |
| 4 people | $107,143 |
| Each additional | +$9,900 |
If your income is BELOW these numbers: You likely qualify for Chapter 7.
If your income is ABOVE these numbers: You must complete the means test calculation (Form 122A-2). If you have little to no disposable income after expenses, you may still qualify.
Who Cannot File Chapter 7
- Filed Chapter 7 in the last 8 years
- Filed Chapter 13 in the last 6 years
- Recent bankruptcy dismissal within 180 days
- Attempting to defraud creditors
What Property Can You Keep in Pennsylvania?
Pennsylvania is unique — you can choose between state exemptions or federal exemptions, but not both.
Pennsylvania State Exemptions
| Property | Exemption Amount |
|---|---|
| Homestead | No homestead exemption in PA |
| Motor Vehicle | None |
| Household Goods | Up to $300 per item |
| Tools of Trade | None |
| Jewelry | Wedding rings (no dollar limit) |
| Retirement Accounts | 401(k), IRA, pension (generally fully exempt) |
| Public Benefits | Social Security, unemployment, veterans benefits |
| Alimony/Child Support | Reasonably necessary for support |
| Insurance Proceeds | Various exemptions available |
Federal Exemptions (Alternative)
| Property | Exemption Amount |
|---|---|
| Homestead | Up to $27,900 |
| Motor Vehicle | Up to $4,450 |
| Household Goods | Up to $14,875 total |
| Tools of Trade | Up to $2,825 |
| Jewelry | Up to $1,875 |
| Wild Card | Up to $1,475 in any property |
| Retirement Accounts | Fully exempt |
Which should you choose? If you own a home with significant equity, federal exemptions may be better. If you don't own a home, federal exemptions still usually provide more protection.
The Filing Process: Step by Step
Step 1: Complete Credit Counseling
Before you can file, you must complete a credit counseling course.
- Where: Approved agencies at justice.gov/ust/eo/bapcpa/ccde
- Cost: $0-$50 (fee waivers available)
- Format: Online, phone, or in person
- Timing: Within 180 days BEFORE filing
Step 2: Gather Documents
Collect:
- Last 6 months of pay stubs
- Last 2 years of tax returns
- Bank statements for all accounts
- List of all debts (names, addresses, amounts)
- List of all assets
- Vehicle titles and registrations
- Mortgage statements
Step 3: Complete Bankruptcy Forms
Required forms:
- Voluntary Petition (Form B 101)
- Schedules A/B through J
- Statement of Financial Affairs (Form B 107)
- Means Test forms (B 122A-1, B 122A-2 if needed)
- Statement of Intention (Form B 113)
Step 4: File Your Petition
Where to file:
Eastern District (Philadelphia):
- 824 Market Street, Suite 4100, Philadelphia, PA 19107
- Phone: (215) 408-2800
Middle District (Harrisburg):
- 228 Walnut Street, Harrisburg, PA 17101
- Phone: (717) 221-3940
Western District (Pittsburgh):
- 701 Grant Street, Pittsburgh, PA 15219
- Phone: (412) 644-7200
Filing fee:
- Chapter 7: $338
- Chapter 13: $313
- Fee waiver applications available (Form B 103B)
Step 5: Attend the 341 Meeting
When: 3-6 weeks after filing
What to bring:
- Photo ID
- Social Security card
- Bank statements
- Tax returns
- Pay stubs
Step 6: Complete Debtor Education
Required for discharge:
- Must complete AFTER filing
- Find approved provider at justice.gov/ust/eo/bapcpa/ccde
- File certificate with court
Step 7: Receive Your Discharge
When: 60-90 days after 341 meeting
What it means:
- Most unsecured debts eliminated
- Creditors cannot pursue you
- Fresh financial start
What Debts Are NOT Discharged?
Bankruptcy does NOT eliminate:
- Student loans (except in rare hardship cases)
- Recent taxes (last 3 years)
- Child support and alimony
- Debts from fraud
- Intentional injury debts
- Criminal fines and restitution
- Debts not listed in bankruptcy
Legal Aid Resources in Pennsylvania
| Organization | Phone | Services |
|---|---|---|
| Community Legal Services (Philadelphia) | (215) 981-3700 | Free bankruptcy help |
| Philadelphia Legal Assistance | (215) 981-3800 | Benefits advocacy |
| MidPenn Legal Services | 1-800-326-9177 | Central PA |
| Neighborhood Legal Services (Pittsburgh) | (412) 255-6700 | Western PA |
| PA Bar Lawyer Referral | (800) 932-0311 | Low-cost consultations |
Next Steps
- Complete credit counseling — justice.gov/ust/eo/bapcpa/ccde
- Gather your documents — pay stubs, tax returns, debt list
- Choose exemptions — State vs. Federal
- Consider your options — Chapter 7 vs. Chapter 13
- Consult an attorney — especially if you have significant assets
- File your petition — at the appropriate district court
Get Pennsylvania Bankruptcy Documents
jurisdiction-correct Pennsylvania bankruptcy documents from Jurist-Diction include Chapter 7 and Chapter 13 templates — starting at $97.
Templates are for informational purposes only and do not constitute legal advice. For legal advice, contact a licensed Pennsylvania attorney or Community Legal Services at (215) 981-3700.