Bankruptcy in Pennsylvania (2026): Exemptions & Means Test

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 who can file Chapter 7. 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, you generally pass and may proceed with 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:

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.

Because Pennsylvania has no state homestead and the choice between the state and federal exemption menus and between Chapter 7 and Chapter 13 depends on your full financial picture, many people consult a licensed Pennsylvania bankruptcy attorney before filing.