Chapter 7 Bankruptcy in Pennsylvania

$65,412

1 person

$83,520

2 people

$100,836

3 people

$116,880

4 people

Below median → automatic Chapter 7 qualification

If your annualized 6-month average income is at or below the PA median for your household size, you pass the means test automatically.

Above median → complete Form 122A-2 expense deductions

Subtract IRS National and Local Standards (housing, food, transportation) plus actual secured debt payments. If remaining disposable income falls below the statutory threshold, you still qualify for Chapter 7.

Still above threshold → Chapter 13 may be required

A presumption of abuse arises. You may convert to Chapter 13 or file a special circumstance rebuttal. Chapter 13 requires a 3–5 year repayment plan.

Complete Credit Counseling (within 180 days before filing)

Complete a course from a U.S. Trustee-approved credit counseling agency. You receive a certificate that must be filed with your petition. Providers are listed at justice.gov/ust.

Choose Your Exemption System (State or Federal)

Decide between Pennsylvania state exemptions and federal exemptions (11 U.S.C. § 522(d)). For most PA filers, federal exemptions are substantially more protective. You must choose one system — you cannot mix both. Joint filers must use the same system.

Complete Required Forms

Official Forms required: 101 (Voluntary Petition), Schedules A/B (real and personal property), Schedule C (exemptions — mark whether federal or state), Schedules D/E/F (secured, priority, and unsecured creditors), Schedules I/J (income and expenses), Statement of Financial Affairs (SOFA), and Forms 122A-1 / 122A-2 (means test). Filing fee: $338.

File Petition and Receive Automatic Stay

File at the appropriate Pennsylvania district court. Upon filing, the automatic stay (11 U.S.C. § 362) immediately halts most collection actions including lawsuits, wage garnishments, foreclosures, repossessions, and collection calls.

341 Meeting of Creditors (~21–40 days after filing)

Attend the 341 meeting before the U.S. Trustee. Bring government-issued photo ID and proof of Social Security number. You will be sworn in and answer questions about your petition under oath. Creditors may attend but typically do not in straightforward no-asset cases.

Complete Debtor Education Course

Complete the required personal financial management course and file Form 423 (Certificate of Completion) within 60 days of the 341 meeting. Failure to file Form 423 in time can result in your case being closed without a discharge.

Discharge Order (60–90 days after 341 meeting)

If no creditor objections are sustained and the trustee finds no non-exempt assets, you receive a discharge order. Total process from filing to discharge typically runs 4–6 months.