Chapter 7 Bankruptcy Lawsuit in Pennsylvania

Pennsylvania Chapter 7 Exemptions

Pennsylvania is an opt-in state: a Pennsylvania debtor may use the state exemption set OR elect the federal Section 522(d) exemptions. Because the Pennsylvania state set is minimal, most Pennsylvania debtors choose the federal set. (Source: Nolo, Pennsylvania Bankruptcy Homestead Exemption.)

State Set vs. Federal Set

Pennsylvania has no state homestead exemption and no state motor-vehicle exemption; the only general state exemption is a $300 wildcard for any property under 42 Pa. C.S. Section 8123. By contrast, the federal set offers a homestead of $31,575 and a vehicle exemption of $5,025, so most Pennsylvania debtors elect the federal exemptions. Tenancy-by-the-entireties property may also be protected from the individual debts of one spouse. (Source: Nolo, Pennsylvania Bankruptcy Homestead Exemption.)

Means Test: Pennsylvania Median Income

The Chapter 7 means test compares a debtor's six-month average gross income to the state median family income for the household size. For Pennsylvania, the U.S. Trustee median family income for a household of four is $135,862 (U.S. Trustee median family income, eff. April 1, 2026; smaller households use lower figures). Below-median filers are generally not presumed to be abusing Chapter 7; above-median filers complete Form 122A-2. (Source: U.S. Trustee Program, justice.gov/ust.)

Which State's Exemptions Apply

Under the 730-day domicile rule (11 U.S.C. Section 522(b)(3)), a debtor must have been domiciled in Pennsylvania for the 730 days before filing to use Pennsylvania's exemptions; otherwise an earlier state's set or the federal exemptions may apply. Because the federal set is available in Pennsylvania regardless, this analysis is most relevant for debtors deciding between state systems.

To compare your six-month income against the Pennsylvania median, use the Chapter 7 means test calculator at /tools/chapter-7-means-test-calculator. To estimate what property the federal set might protect for a Pennsylvania filer, use the bankruptcy exemption estimator at /tools/bankruptcy-exemption-estimator.

Exemption amounts change — verify current figures with an attorney. People's Justice is not a law firm and does not provide legal advice; we connect you with licensed attorneys, and we are not a government agency.