How to Qualify for Debt Relief in Pennsylvania: Chapter 7, Chapter 13 and Settlement

“Do I qualify?” is usually the first question people ask me. The honest answer is that most people qualify for at least one option under Pennsylvania and federal bankruptcy law. Here is how each one works.

Chapter 7: the means test

Chapter 7 starts with your average household income over the six months before filing. If it is at or below the Pennsylvania median for your household size, you generally pass. Using the U.S. Trustee table effective for cases filed on or after July 15, 2026, the Pennsylvania medians are $72,230 for one person, $87,534 for two, $110,151 for three and $135,862 for four, plus $11,100 for each additional member. Above the median, a second step subtracts allowed expenses. You can run your numbers with our means test calculator.

Chapter 13: regular income and a workable plan

Chapter 13 requires regular income and a three- to five-year plan that meets the Code’s requirements. It is often the right fit if you are behind on a mortgage or car loan, have income above the median, or have property you want to protect. See Chapter 13 in Pennsylvania.

Requirements for both chapters

• A credit counseling course from an approved provider within 180 days before filing.
• A debtor education course before discharge.
• Complete, honest disclosure of income, assets and debts.
• Waiting periods if you received a prior discharge.

Settlement or a debt management plan

There is no legal test for settlement, but it tends to work only when you have a lump sum or steady surplus, a few creditors, and no lawsuits or garnishments. If you could pay your unsecured debts within about five years, a nonprofit debt management plan may be worth considering first.

Next step

Try the debt relief calculator for a rough estimate, then request a free consultation. Results are never guaranteed, but you will leave knowing your real options.