The Pennsylvania Answer in One Paragraph
Pennsylvania filers choose between Chapter 7 (liquidation, 3-4 months, strong discharge rate) and Chapter 13 (3-5 year repayment plan, better for saving a home from foreclosure or for filers above the means test). Three Pennsylvania-specific inputs drive the choice: (1) the Pennsylvania means test median of $71,547 for a 1-person household, (2) the Pennsylvania homestead exemption of No state homestead (federal available), and (3) the local filing mix and outcome data below. Everything else on this page is elaboration on those three factors.
Quick Side-by-Side
Chapter 7 in Pennsylvania
Chapter 13 in Pennsylvania
Pennsylvania Means Test Thresholds (April 2026)
Pennsylvania's single-person median of $71,547 sits near the national midpoint. Filers close to the line should compute a careful 6-month average -- one high month (bonus, overtime, commission spike) can flip Part 1 from pass to fail.
| Household Size | Pennsylvania Median Income |
|---|---|
| 1-person household | $71,500 |
| 2-person household | $93,000 |
| 3-person household | $108,800 |
| 4-person household | $126,600 |
| 5-person household | $137,400 |
| 6-person household | $148,100 |
For household sizes above 6, add $11,100 per additional member. Full details at the Pennsylvania means test calculator. For a general discussion, see our means test overview.
Pennsylvania Homestead Exemption and the Chapter Choice
Pennsylvania does not have a state homestead exemption, but filers can use the federal homestead exemption under 11 U.S.C. Section 522(d)(1) (approximately $31,575 per filer as of 2026, doubled for joint filers). For homeowners with equity above that amount, Chapter 13 is often the only option to stop foreclosure and keep the home.
Pennsylvania lets filers choose between state exemptions and the federal bankruptcy exemption scheme (11 U.S.C. Section 522(d)). Review the full exemption list at bankruptcyexemptionsbystate.com/pennsylvania before assuming any specific asset is safe.
Homestead amount (Pennsylvania): No state homestead (federal available). Statute: 42 Pa.C.S. (see 522(d)).
Pennsylvania's Chapter 7 vs Chapter 13 Filing Mix
Warning sign: Pennsylvania's Ch. 7/13 mix is unusual. Of 1,513 consumer cases in the federal database, 72.6% are Chapter 13 and only 27.4% are Chapter 7. That is the inverse of the national average (where Chapter 7 accounts for roughly two-thirds of filings). This pattern is driven in part by local practitioner habit, trustee posture, and court-level plan-confirmation dynamics. If a Pennsylvania attorney steers you toward Chapter 13, ask explicitly why Chapter 7 is not the right fit for your facts -- not for the local default.
Why does filing mix matter? Attorney fee structures often favor Chapter 13 (paid through the plan rather than up-front), which can produce local-market bias toward Chapter 13 that is not driven by individual debtor facts. FJC data lets you see whether Pennsylvania's mix matches the economics of the typical filer's situation.
Pennsylvania Federal Court Data
Numbers below come from the Federal Judicial Center Integrated Database, covering 1,513 consumer bankruptcy cases filed in Pennsylvania's federal bankruptcy courts.
| Chapter | Cases Filed | Discharge Rate (resolved) |
|---|---|---|
| Chapter 7 | 415 | n/a |
| Chapter 13 | 1,098 | n/a |
National-average completion rates apply: Chapter 7 discharges over 93% of the time, Chapter 13 about 40-50% (the remainder dismissed before plan completion).
Which Chapter Fits Which Pennsylvania Filer?
- If your income is below the Pennsylvania median ($71,547, 1-person) and you own little non-exempt property: Chapter 7 is almost certainly the right choice. Fast, cheap, and the highest discharge rate in consumer bankruptcy.
- If you are behind on your mortgage or car loan and want to keep the collateral: Chapter 13 lets you cure arrears over 36 to 60 months while the automatic stay blocks foreclosure and repossession.
- If a Pennsylvania attorney steers you to Chapter 13 despite passing the means test: get a specific, written reason tied to your assets, income, or debts. Local default in Pennsylvania is Chapter 13-heavy; your facts may still fit Chapter 7.
- If you have high home equity and Pennsylvania caps the homestead exemption: run the numbers on Chapter 13 cramdown, lien stripping (for wholly underwater junior liens), and the federal BAPCPA homestead cap before assuming Chapter 7 is safe.
- If you have filed before within the lookback windows: use the 1328(f) discharge screener first -- a prior Chapter 7 discharge bars another Chapter 7 for 8 years, and a prior Chapter 13 discharge bars another Chapter 13 for 2 years.
Rule of thumb for Pennsylvania: if you qualify for Chapter 7 on the means test AND your home equity is within the No state homestead (federal available) homestead, Chapter 7 is almost always the right choice. Chapter 13 is the right answer when specific facts (arrears, non-exempt equity, prior Chapter 7 within 8 years) rule Chapter 7 out.
Frequently Asked Questions
Is Chapter 7 or Chapter 13 better in Pennsylvania?
For most Pennsylvania filers who pass the means test, Chapter 7 is faster, cheaper, and succeeds more often. Chapter 13 is the right choice if you need to save a home from foreclosure, cure arrears, catch up on priority taxes, or cannot qualify for Chapter 7.
What is the Chapter 7 income limit in Pennsylvania?
There is no hard dollar limit. The means test compares your 6-month average income (annualized) to the Pennsylvania median for your household size. One person: $71,547. Four person: $126,600. Above-median filers can still qualify by running Part 2 expense deductions.
Can I use federal bankruptcy exemptions in Pennsylvania?
Yes. Pennsylvania is an opt-in state -- filers may choose federal exemptions under 11 U.S.C. Section 522(d) instead of state exemptions. Compare both schedules before filing; federal can offer a larger wildcard while state may offer a larger homestead.
How much home equity is protected in Pennsylvania bankruptcy?
Pennsylvania's homestead exemption protects No state homestead (federal available) under 42 Pa.C.S. (see 522(d)). Federal BAPCPA limits (11 U.S.C. Section 522(p)) can cap this at approximately $214,000 for a residence acquired within 1,215 days of filing.
How long does bankruptcy take in Pennsylvania?
Chapter 7 takes 3 to 4 months from filing to discharge in Pennsylvania federal bankruptcy court. Chapter 13 takes 3 years (below-median) or 5 years (above-median) of monthly plan payments before discharge.
Can I switch from Chapter 13 to Chapter 7 in Pennsylvania?
Yes. Under 11 U.S.C. Section 1307(a), a Chapter 13 debtor in Pennsylvania generally has the right to convert to Chapter 7 at any time, as long as the case was not previously converted from Chapter 7. You must still pass the means test at the time of conversion.
Related Pennsylvania Resources
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Last updated: 2026-04-18. Not legal advice. Statutory homestead and median-income figures are reproduced from public sources and may lag statutory amendments -- verify against current state statute before relying.
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