Filing Chapter 7 Bankruptcy in Pennsylvania (2026)
Reviewed by DocDraft Legal Team · Pennsylvania · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by the exemption list you claim. Pennsylvania is a choice state: under 11 U.S.C. 522(b) a Pennsylvania filer may elect either the federal 522(d) exemptions or Pennsylvania's own thin state set. Pennsylvania has no state homestead exemption, so most Pennsylvania homeowners choose the federal exemptions to protect home equity under 11 U.S.C. 522(d)(1). This page explains the Pennsylvania state exemptions in 42 Pa. C.S. 8123, 8124, and 8127, the current federal figures most filers use instead, the means-test median income, and the three federal courts where Pennsylvanians file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, child support, or alimony.
Does Pennsylvania use state or federal bankruptcy exemptions?
Either. Pennsylvania is a choice state, so under 11 U.S.C. 522(b) a filer may elect the federal 522(d) exemptions or the Pennsylvania state set in 42 Pa. C.S. 8123 and 8124. Because Pennsylvania's state exemptions are thin and include no homestead, most Pennsylvania filers choose the federal list. You pick one set in full.
Can I keep my house if I file Chapter 7 in Pennsylvania?
Often yes, but usually only by choosing the federal exemptions. Pennsylvania has no state homestead exemption, so the state set protects little home equity. Filers who elect the federal exemptions can protect up to $31,575 of equity per person under 11 U.S.C. 522(d)(1), which a married couple can double.
Can I keep my car if I file Chapter 7 in Pennsylvania?
Usually yes if your equity is modest. Pennsylvania has no state motor vehicle exemption, so filers protect a car through the federal set, which exempts $5,025 of vehicle equity under 11 U.S.C. 522(d)(2). The federal wildcard can cover additional equity. If your car equity fits, the vehicle is protected.
What is the income limit to file Chapter 7 in Pennsylvania?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Pennsylvania are $72,230 for one earner, $87,534 for two, $110,151 for three, and $135,862 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Pennsylvania Is a Choice State With No Homestead, So Most Filers Pick the Federal Exemptions
Pennsylvania has not opted out of the federal exemptions, so under 11 U.S.C. 522(b) a Pennsylvania debtor may elect either the federal 522(d) list or Pennsylvania's own state exemptions, but not both. What makes Pennsylvania distinctive is how thin the state set is: 42 Pa. C.S. 8123 gives only a $300 general monetary exemption, 42 Pa. C.S. 8124 exempts specific items like wearing apparel, bibles, schoolbooks, sewing machines, uniforms, and most retirement and pension funds, and 42 Pa. C.S. 8127 keeps wages in the employer's hands largely exempt from attachment. Critically, Pennsylvania has no state homestead exemption and no state motor vehicle exemption. Because of that, most Pennsylvania filers with home or car equity choose the federal exemptions instead, which protect up to $31,575 of home equity under 522(d)(1), $5,025 of vehicle equity under 522(d)(2), and a wildcard of $1,675 plus up to $15,800 of any unused homestead under 522(d)(5). A married couple filing jointly can generally double the federal figures. Pennsylvanians file in one of three federal bankruptcy courts: the Eastern, Middle, or Western District of Pennsylvania, based on where they have lived for most of the prior 180 days.
Relevant Laws
Pennsylvania General Monetary Exemption (42 Pa. C.S. 8123)
Exempts property of the judgment debtor, including money, securities, and real property, up to a value of $300 from attachment or execution. This $300 general exemption functions as Pennsylvania's wildcard. Pennsylvania provides no state homestead exemption, which is why most filers choose the federal set instead.
Pennsylvania Exemption of Particular Property (42 Pa. C.S. 8124)
Exempts specific items rather than dollar-value categories: wearing apparel, bibles and schoolbooks, sewing machines, uniforms and accoutrements, and most retirement funds, pensions, and certain insurance proceeds. There is no state motor vehicle exemption, so a filer protects a car through the federal list.
Pennsylvania Wages Exempt From Process (42 Pa. C.S. 8127)
Provides that wages, salaries, and commissions are exempt from attachment or execution while in the hands of the employer, with narrow exceptions for support, certain divorce claims, board for four weeks or less, taxes, restitution, and residential-lease judgments. Pennsylvania is notably protective of wages.
Federal Bankruptcy Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b) lets a state opt out of the federal 522(d) exemptions; Pennsylvania has not, so filers may choose the federal 522(d) list, and section 707(b) sets the means test measured against state median income.
Regional Variances
Pennsylvania State Exemptions vs. the Federal Set Most Filers Choose
Homestead
Pennsylvania state set: none. Pennsylvania has no state homestead exemption. Federal set (11 U.S.C. 522(d)(1)): $31,575 of home equity per filer, which a married couple can generally double. Because the state set protects no home equity, filers with a house almost always choose the federal exemptions.
Motor vehicle
Pennsylvania state set: none. There is no state vehicle exemption. Federal set (11 U.S.C. 522(d)(2)): $5,025 of equity in one motor vehicle. Additional car equity can be covered by the federal wildcard. This gap is another reason most Pennsylvania filers elect the federal list.
Wildcard
Pennsylvania state set (42 Pa. C.S. 8123): a $300 general monetary exemption applicable to any property. Federal set (11 U.S.C. 522(d)(5)): $1,675 plus up to $15,800 of any unused homestead exemption, so a renter can protect a large amount of cash or other assets. The federal wildcard dwarfs the $300 state figure.
Personal property
Pennsylvania state set (42 Pa. C.S. 8124): specific items only, including wearing apparel, bibles, schoolbooks, sewing machines, and uniforms and accoutrements. Federal set (11 U.S.C. 522(d)(3)): household goods, furnishings, apparel, and appliances up to $800 per item and $16,850 in the aggregate.
Wages
Pennsylvania state set (42 Pa. C.S. 8127): wages, salaries, and commissions are exempt from attachment while in the employer's hands, with narrow exceptions for support, certain divorce claims, taxes, restitution, and residential-lease judgments. This strong wage protection is a genuine Pennsylvania advantage that survives regardless of the exemption set chosen in bankruptcy.
Retirement and tools
Pennsylvania state set (42 Pa. C.S. 8124): most retirement funds, pensions, and certain insurance proceeds are exempt; there is no separate tools-of-trade exemption. Federal set: retirement funds are exempt under 11 U.S.C. 522(d)(12), and tools of the trade are exempt up to $3,175 under 522(d)(6). ERISA-qualified plans are separately excluded from the estate under federal law.
Suggested Compliance Checklist
Confirm the current Pennsylvania means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Pennsylvania median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $72,230 for one, $87,534 for two, $110,151 for three, and $135,862 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for your Pennsylvania district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Choose the federal or Pennsylvania exemption set and value your assets
Before preparing your schedules days after startingDecide between the federal 522(d) list and the Pennsylvania state set in 42 Pa. C.S. 8123 and 8124. Because Pennsylvania has no state homestead or vehicle exemption, value your home, vehicle, and personal property to confirm whether the federal set protects more. You must choose one set in full.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the correct court: the U.S. Bankruptcy Court for the Eastern, Middle, or Western District of Pennsylvania, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Pennsylvania means-test median income | Check your household size against the U.S. Trustee Pennsylvania median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $72,230 for one, $87,534 for two, $110,151 for three, and $135,862 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for your Pennsylvania district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Choose the federal or Pennsylvania exemption set and value your assets | Decide between the federal 522(d) list and the Pennsylvania state set in 42 Pa. C.S. 8123 and 8124. Because Pennsylvania has no state homestead or vehicle exemption, value your home, vehicle, and personal property to confirm whether the federal set protects more. You must choose one set in full. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the correct court: the U.S. Bankruptcy Court for the Eastern, Middle, or Western District of Pennsylvania, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
No. Pennsylvania has not opted out of the federal exemptions, so it is a choice state. Under 11 U.S.C. 522(b) a Pennsylvania debtor may elect either the federal 522(d) exemptions or Pennsylvania's state exemptions in 42 Pa. C.S. 8123 and 8124. You choose one list in full. Because the state set is thin, most Pennsylvania filers choose the federal exemptions.
No. Pennsylvania has no state homestead exemption, which is why most Pennsylvania homeowners with equity elect the federal exemptions instead. The federal homestead under 11 U.S.C. 522(d)(1) protects up to $31,575 of equity per filer, and a married couple filing jointly can generally double that to $63,150 on a jointly owned home.
It is thin. Under 42 Pa. C.S. 8123 you get a $300 general monetary exemption you can apply to any property. Under 42 Pa. C.S. 8124, specific items are exempt, including wearing apparel, bibles, schoolbooks, sewing machines, uniforms, and most retirement and pension funds. Under 42 Pa. C.S. 8127, wages in the employer's hands are largely exempt from attachment.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or alimony, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
You file in the federal bankruptcy court for your area: the U.S. Bankruptcy Court for the Eastern, Middle, or Western District of Pennsylvania. The Eastern District covers Philadelphia and the southeast, the Middle District covers Harrisburg and Scranton, and the Western District covers Pittsburgh and Erie. You file where you have lived for most of the prior 180 days.
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