Pennsylvania
Bankruptcy in Pennsylvania (2026): Exemptions & Means Test
Independently fact-checked against primary sources (last audited August 16, 2026). · Reviewed by the RecordingLaw editorial team. · Law checked current as of August 16, 2026. · 5 primary sources cited on this page. How we verify our legal content
Pennsylvania is one of the states that gives bankruptcy filers a choice: you can use Pennsylvania's own exemptions or the federal bankruptcy exemptions, whichever protects more of your property. That choice matters more here than in most states, because Pennsylvania has no state homestead exemption and no state motor-vehicle exemption. As a result, filers who need to protect home or car equity almost always rely on the federal exemption set. Bankruptcy itself is federal law, but the exemptions that decide what you keep, and the means-test income that decides which chapter you can use, are state-specific, so confirm the current figures before relying on them.
This page is general legal information, not legal advice. It is part of our Bankruptcy by State series.
Does Pennsylvania use state or federal bankruptcy exemptions?
Pennsylvania is not an opt-out state. A debtor who files bankruptcy in Pennsylvania may elect to use the Pennsylvania exemptions in Title 42 of the Pennsylvania Consolidated Statutes, or instead claim the exemptions allowed under federal law in 11 U.S.C. 522(d). In practice that means a Pennsylvania filer picks one of two complete menus: the state list or the federal list. You cannot mix items from both. About a third of states, including Pennsylvania, allow this choice; roughly two-thirds have opted out and force filers onto state law only.
What makes Pennsylvania unusual is that its state exemptions are thin. There is no state homestead exemption and no state vehicle exemption, and the state wildcard is just $300. Because of that, the large majority of Pennsylvania filers who own a home or a car with equity choose the federal exemption set, which provides meaningful homestead, vehicle, and wildcard protection. Married couples filing jointly can generally each claim a full set of whichever system they choose, which often doubles the protected amounts.
Pennsylvania homestead exemption
Pennsylvania does not provide a state homestead exemption in bankruptcy. That is the single most important fact for a Pennsylvania homeowner deciding how to file. Because the state offers no homestead protection, a filer who wants to shield equity in a primary residence must choose the federal exemption set and use the federal homestead exemption.
The federal homestead under 11 U.S.C. 522(d)(1) protects up to $31,575 of equity in a primary residence for cases filed between April 1, 2025 and March 31, 2028. Spouses who jointly own the home and file together can double the amount to $63,150. Homestead protection covers equity, not the full value of the home, so a residence worth far more than the mortgage plus the federal exemption can leave non-exempt equity that a Chapter 7 trustee may reach. Pennsylvania homeowners with substantial equity often look at Chapter 13 instead, because it lets them keep the home while repaying creditors over time. One way some married Pennsylvania couples protect a home is tenancy by the entireties, which can shield jointly owned property from the debts of only one spouse, but that is a fact-specific question for an attorney.
Vehicle, wildcard, and personal-property exemptions
Pennsylvania's state exemptions in 42 Pa.C.S. are limited. The main categories include:
- No state motor-vehicle exemption. A Pennsylvania filer protects vehicle equity only through the federal vehicle exemption of $5,025 (if using the federal set) or the small state wildcard.
- State wildcard: $300 in any property, including cash, under 42 Pa.C.S. 8123.
- Clothing, bibles and school books, sewing machines, and certain uniforms and military equipment are exempt under state law.
- Wages: most wages are protected from garnishment under Pennsylvania law, and 75 percent of disposable earnings are protected under federal law.
- Retirement accounts and certain pensions are protected under separate state and federal exemptions regardless of which menu you choose.
Because the state list is so limited, the federal set is usually more favorable for filers with property to protect. The federal wildcard under 11 U.S.C. 522(d)(5) is $1,675 plus up to $15,800 of unused homestead exemption, which dwarfs Pennsylvania's $300 state wildcard. Confirm the current amounts before filing, because the federal figures adjust every three years.
The Chapter 7 means test in Pennsylvania
The means test screens Chapter 7 filings for a presumption of abuse. The first step compares your household's current monthly income, annualized, to the median family income for a Pennsylvania household of the same size. If your income is at or below the Pennsylvania median, there is no presumption of abuse and you do not need to complete Form 122A-2, but that alone does not make you eligible for Chapter 7. If it is above the median, you complete the longer calculation that subtracts allowed expenses to see whether you have disposable income that should fund a Chapter 13 plan instead.
The U.S. Trustee Program publishes the median figures and updates them periodically. For cases filed on or after April 1, 2026, the Pennsylvania median family income is:
| Household size | Pennsylvania median annual income |
|---|---|
| 1 | $72,230 |
| 2 | $87,534 |
| 3 | $110,151 |
| 4 | $135,862 |
Add $11,100 for each additional person beyond four. These figures apply only to cases filed on or after April 1, 2026. The U.S. Trustee Program revises the median income data roughly twice a year, so confirm the current numbers for your filing date.
Chapter 7 vs. Chapter 13 in Pennsylvania
Chapter 7 is a liquidation. A trustee can sell non-exempt property to pay creditors, but a Pennsylvania filer who uses the federal exemption set can usually protect most household property, so many Chapter 7 cases are "no-asset" cases where nothing is sold. Most remaining unsecured debt, such as credit cards and medical bills, is discharged in a few months.
Chapter 13 is a reorganization for filers with regular income. You keep your property and repay some or all of what you owe through a three-to-five-year plan. Chapter 13 is often chosen by Pennsylvania homeowners who are behind on a mortgage or who have equity above the federal homestead, because the plan can spread out missed payments and stop a foreclosure while protecting the home.
In both chapters, filing triggers the automatic stay under 11 U.S.C. 362. The stay immediately halts most collection activity, including foreclosure sales, wage garnishment, repossession, and collection calls, while the case proceeds.
Where you file bankruptcy in Pennsylvania
Pennsylvania is divided into three federal bankruptcy districts. The U.S. Bankruptcy Court for the Eastern District of Pennsylvania sits in Philadelphia and Reading and covers the southeastern counties. The U.S. Bankruptcy Court for the Middle District of Pennsylvania sits in Harrisburg, Wilkes-Barre, and Williamsport and covers the central and northeastern counties. The U.S. Bankruptcy Court for the Western District of Pennsylvania sits in Pittsburgh, Erie, and Johnstown and covers the western counties. Which court you file in depends on the county where you live. Before filing, federal law requires you to complete an approved credit-counseling course, and you must complete a debtor-education course before your debts are discharged.
What bankruptcy can and cannot do
Bankruptcy discharges most unsecured debts, but several categories generally survive: most student loans (absent a separate showing of undue hardship), recent income taxes, child support and alimony, and debts from fraud or willful injury. Secured debts like a car loan or mortgage continue if you want to keep the collateral and keep paying.
Pennsylvania gives you no state homestead to fall back on, so ask a Pennsylvania lawyer in a free bankruptcy evaluation which exemption menu and chapter fit your full financial picture (attorney advertising).
Frequently Asked Questions
Does Pennsylvania use state or federal bankruptcy exemptions?
Pennsylvania lets you choose. It has not opted out of the federal exemptions, so a filer domiciled in Pennsylvania may use either the state exemptions in 42 Pa.C.S. or the federal bankruptcy exemptions in 11 U.S.C. 522(d). Because the state exemptions are limited, most filers with property choose the federal set. You pick one full menu, not a mix of both.
What is the homestead exemption in Pennsylvania?
Pennsylvania has no state homestead exemption. To protect home equity, a Pennsylvania filer must use the federal homestead exemption under 11 U.S.C. 522(d)(1), which is $31,575 (doubled to $63,150 for spouses who jointly own the home and file together) for cases filed between April 1, 2025 and March 31, 2028. Confirm the current amount before filing.
What is the Pennsylvania median income for the means test?
For cases filed on or after April 1, 2026, the Pennsylvania median family income is $72,230 for 1 person, $87,534 for 2, $110,151 for 3, and $135,862 for 4, adding $11,100 for each additional person. The U.S. Trustee Program updates these figures periodically.
Will I lose my house or car if I file bankruptcy in Pennsylvania?
Not necessarily, but Pennsylvania offers no state homestead or vehicle exemption, so protection comes from the federal set: a $31,575 homestead and a $5,025 vehicle exemption. Most filers keep their home and car as long as they stay current on the related loans, though equity above the federal limits can be at risk in Chapter 7. Married couples sometimes protect a home through tenancy by the entireties.
Why do most Pennsylvania filers use the federal exemptions?
Because Pennsylvania's state exemptions are thin. There is no state homestead exemption, no state vehicle exemption, and only a $300 wildcard. The federal set provides a $31,575 homestead, a $5,025 vehicle exemption, and a wildcard of $1,675 plus up to $15,800 of unused homestead, so filers with property to protect almost always choose federal.
Where do I file for bankruptcy in Pennsylvania?
Pennsylvania has three federal bankruptcy districts. The Eastern District sits in Philadelphia and Reading, the Middle District sits in Harrisburg, Wilkes-Barre, and Williamsport, and the Western District sits in Pittsburgh, Erie, and Johnstown. The court you use depends on your county. You must complete approved credit counseling before filing.
What debts cannot be discharged in a Pennsylvania bankruptcy?
Most student loans (absent a showing of undue hardship), recent income taxes, child support, alimony, and debts arising from fraud generally are not discharged. Most credit-card and medical debt usually is.
Does filing bankruptcy stop a foreclosure in Pennsylvania?
Filing triggers the automatic stay under 11 U.S.C. 362, which immediately halts most collection activity, including foreclosure and wage garnishment. Chapter 13 can also let a homeowner cure missed mortgage payments over time.
Updates
Clarified that income at or below the state median means the presumption of abuse does not arise under the Chapter 7 means test, not that a filer qualifies for Chapter 7.
Independently fact-checked against the cited primary sources; governing law re-checked for recent changes
Governing law re-checked for recent changes
Governing law re-checked for recent changes
Reviewed and approved by an editor
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
Pennsylvania Consolidated Statutes Title 42 (Judiciary and Judicial Procedure)
§ 8123General monetary exemptionIn forcecited in 5 of our articles
(a) General rule.--In addition to any other property specifically exempted by this subchapter, property of the judgment debtor (including bank notes, money, securities, real property, judgments or other indebtedness due the judgment debtor) to the value of $300 shall be exempt from attachment or execution on a judgment. Within such time as may be prescribed by general rules the judgment debtor may claim the exemption in kind and may designate the specific items of property to which the exemption provided by this section shall be applicable unless the designated property is not capable of appropriate division, or the judgment debtor may claim the exemption in cash out of the proceeds of the sale. (b) Exception.--Subsection (a) shall not apply to any judgment: (1) For support. (2) Debtor who is not an individual. (3) Obtained for board for four weeks or less. (4) For $100 or less obtained for wages for manual labor. (5) Obtained in foreclosing a mortgage secured upon real property whether the judgment is by an action in mortgage foreclosure or an action on a note, bond or other evidence of indebtedness accompanying a mortgage.
Official text (excerpt) · last checked 2026-09-06 · Read the full text in our law library · Verify at palegis.us
Cited in 22 court opinions in our collectionLatest citing opinion in our collection: 2025
Opinions citing this section in our collection:
- Sweeney v. Lotz (Commonwealth Court of Pennsylvania 2001, 787 A.2d 449)“…Section *451 8123(a) of the Judicial Code, 42 Pa.C.S. § 8123(a). By opinion and order dated February…”
- Russell v. Donnelly (Commonwealth Court of Pennsylvania 2003, 827 A.2d 535)“…tion 8123(a) of the Judicial Code, as amended, 42 Pa.C.S. § 8123(a). In rejecting the claim, the Court s…”
- Harvey v. Department of Corrections (Commonwealth Court of Pennsylvania 2003, 823 A.2d 1106)“…The inmate pointed to Section 8123(a) of the Judicial Code, 42 Pa.C.S. § 8123(a), which provides judgment debtors the…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Pennsylvania Debt Collection Laws: The Wage Garnishment Ban and Its Exact Exceptions, Pennsylvania Homestead Exemption: How It Works and March 1 Deadline, Pennsylvania Small Claims Court: $12,000 Limit, Fees and How to File
United States Code Title 11
§ 522ExemptionsIn forcecited in 54 of our articles
In this section— “dependent” includes spouse, whether or not actually dependent; and “value” means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate. Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (2) or, in the alternative, paragraph (3) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure, one debtor may not elect to exempt property listed in paragraph (2) and the other debtor elect to exempt property listed in paragraph (3) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (2), where such election is permitted under the law of the jurisdiction where the case is filed.
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 7,574 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):Taylor v. Freeland & Kronz (1992) held that a trustee who does not object within the 30-day period cannot later challenge an exemption claimed under 522(l), even one with no statutory basis. Owen v. Owen (1991) held that 522(f) lien avoidance is not defeated by a state exemption written to exclude lien-encumbered property.
Opinions citing this section in our collection:
- Taylor v. Freeland & Kronz (Supreme Court of the United States 1992, 503 U.S. 638)✓A Chapter 7 debtor listed the entire proceeds of her TWA discrimination suit as exempt and the trustee let the 30-day objection window lapse; the Court held that under § 522(l) the property is exempt once no one objects, even absent a colorable statutory basis.
- Patterson v. Shumate (Supreme Court of the United States 1992, 504 U.S. 753)✓A debtor's $250,000 ERISA pension interest was excluded from his estate under § 541(c)(2); answering a surplusage argument, the Court read § 522(d)(10)(E) as exempting a broader set of plans, and expressly declined to decide whether § 522(b)(2)(A) also applied.
- Owen v. Owen (Supreme Court of the United States 1991, 500 U.S. 305)✓An ex-wife's judgment lien attached to a Florida condo before state law made it a homestead; the Court held § 522(f) measures impairment against the exemption the debtor would have had but for the lien, so Florida's carve-out for prior liens did not defeat avoidance.
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy Laws by State (2026): Exemptions & Means Test, Bankruptcy in Alabama (2026): Exemptions & Means Test, Bankruptcy in Alaska (2026): Exemptions & Means Test
§ 362Automatic stayIn forcecited in 54 of our articles
Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of— the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title; the enforcement, against the debtor or against property of the estate, of a judgment obtained before the commencement of the case under this title; any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate; any act to create, perfect, or enforce any lien against property of the estate; any act to create, perfect, or enforce against property of the debtor any lien to the extent that such lien secures a claim that arose before the commencement of the case under this title; any act to…
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 19,606 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (1988) held that an undersecured creditor gets no interest as adequate protection under 362(d)(1) for delay caused by the stay. NLRB v. Bildisco & Bildisco (1984) applied 362(a) in requiring claims be pursued through bankruptcy administration, not suit.
Opinions citing this section in our collection:
- Clinton v. Jones (Supreme Court of the United States 1997, 520 U.S. 681)“…ublic interests. Brief for Petitioner 34-36. See, e. g., 11 U. S. C. § 362 (litigation against debtor stayed upon…”
- United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (Supreme Court of the United States 1988, 484 U.S. 365)✓An undersecured lender on a Houston apartment project sought monthly payments as the price of continuing the § 362(a) automatic stay; the Court held that 'adequate protection' under § 362(d)(1) does not entitle it to interest for the delay in foreclosing on its collateral.
- Pennzoil Co. v. Texaco Inc. (Supreme Court of the United States 1987, 481 U.S. 1)“…if it were forced to file for bankruptcy under Chapter 11. 11 U. S. C. §362 . Texaco, or its successor in interest,…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy in Arizona (2026): Exemptions & Means Test, Bankruptcy in Arkansas (2026): Exemptions & Means Test, Bankruptcy in California (2026): Exemptions & Means Test
Sources and References
- 42 Pa.C.S. Chapter 81, Pennsylvania exemptions (including the $300 wildcard in section 8123); Pennsylvania provides no state homestead or motor-vehicle exemption(legis.state.pa.us).gov
- U.S. Trustee Program, Census Bureau Median Family Income by family size, cases filed on or after April 1, 2026(justice.gov).gov
- 11 U.S.C. 522, exemptions, including the state opt-out authority in 522(b) and the federal exemption schedule in 522(d), with the $31,575 homestead and $5,025 vehicle amounts(law.cornell.edu)
- U.S. Bankruptcy Court for the Eastern District of Pennsylvania (Philadelphia, Reading)(paeb.uscourts.gov).gov
- U.S. Bankruptcy Court for the Middle District of Pennsylvania (Harrisburg, Wilkes-Barre, Williamsport)(pamb.uscourts.gov).gov
- U.S. Bankruptcy Court for the Western District of Pennsylvania (Pittsburgh, Erie, Johnstown)(pawb.uscourts.gov).gov
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