Chapter 7 in Pennsylvania: Free Bankruptcy Means Test Calculator

Filing Chapter 7 in Pennsylvania

Chapter 7 in Pennsylvania is a federal liquidation bankruptcy that discharges most unsecured debts — credit cards, medical bills, personal loans, deficiency balances, older income taxes, and most judgments — usually within about 90 days of filing. Pennsylvania cases are filed in one of three federal districts (Eastern, Middle, or Western) depending on where you live, and 341 meetings of creditors are now held virtually statewide.

To file Chapter 7 in Pennsylvania you must pass the means test. The calculator above runs the first step — the median-income comparison — using the current U.S. Trustee schedules for Pennsylvania.

2026 Pennsylvania Chapter 7 income limits

For cases filed on or after April 1, 2026, the Pennsylvania Chapter 7 median household income figures are:

• Household of 1 — $72,230
• Household of 2 — $87,534
• Household of 3 — $110,151
• Household of 4 — $135,862
• Each additional person — add $11,100

If your annualized income is at or below the figure for your household size, you presumptively qualify for Chapter 7 in Pennsylvania. If you are over, you can still qualify by completing Form 122A-2, which deducts IRS-standard living expenses and secured-debt payments.

Chapter 7 vs. Chapter 13 in Pennsylvania

Chapter 7 wipes out qualifying unsecured debt in a few months. Chapter 13 is a 3-to-5 year repayment plan for filers above the Pennsylvania median, filers who are behind on a mortgage or car loan, or filers who need to catch up on nondischargeable taxes. If the calculator shows you above the PA median, Chapter 13 is often still a strong option — and we cover both chapters in a free consultation. See the Chapter 13 bankruptcy guide or the full Chapter 13 vs. Chapter 7 comparison.

Frequently asked questions

Who qualifies for Chapter 7 in Pennsylvania?

You presumptively qualify for Chapter 7 in Pennsylvania if your average gross household income over the last six months, annualized, is at or below the Pennsylvania median for your household size. Filers above the median can still qualify by passing the long-form means test (Form 122A-2), which deducts allowed living expenses.

What is the Pennsylvania Chapter 7 income limit for 2026?

For cases filed on or after April 1, 2026, the Pennsylvania Chapter 7 median income limits are $72,230 for a household of 1, $87,534 for 2, $110,151 for 3, and $135,862 for 4. Add $11,100 for each additional household member.

How does the Chapter 7 means test work in Pennsylvania?

The means test compares your average monthly income over the six months before filing to the Pennsylvania median. If you are at or below the median, you pass automatically. If you are over, you complete Form 122A-2, which subtracts IRS-standard living expenses and secured-debt payments to determine whether you have disposable income to fund a Chapter 13 plan.

What living expenses are deductible on the Pennsylvania Chapter 7 means test?

The long-form means test (Form 122A-2) uses IRS National and Local Standards for most categories: food, clothing, housekeeping, personal care, housing, utilities, and vehicle ownership/operating costs. Actual expenses are allowed for some items like taxes, health insurance, childcare, term life insurance, and court-ordered payments. These standards are not unique to Pennsylvania; they are federal standards applied to your Pennsylvania case.

Can I deduct my actual housing and utility costs on the PA means test?

Housing and utility costs are compared to IRS Local Standards for your Pennsylvania county. If your actual expenses are above the standard, the allowed deduction is usually capped at the standard amount. If you are below the standard, the lower actual amount is used. The standards are updated regularly by the IRS and vary by county.

Are vehicle payments and car operating costs deductible on the Pennsylvania means test?

Yes. If you own a vehicle, you can deduct IRS-standard operating costs. If you are making payments on a vehicle, you may also deduct the secured-debt payment up to the IRS ownership standard. If you are leasing a vehicle, the lease payment is typically deductible as a secured debt. Expenses for a second vehicle may be allowed depending on household size and need.

Can I deduct taxes and health insurance on the PA means test?

Yes. Payroll taxes, self-employment taxes, income taxes, and mandatory health insurance premiums are generally deductible on the long-form means test. Health insurance costs for dependents, dental and vision insurance, and health savings account contributions may also be deductible if they are reasonable and necessary.

Can I deduct charitable contributions or tithing on the Pennsylvania means test?

Charitable contributions are not a standard deduction on the long-form means test. The court typically applies IRS standards and necessary expenses, so voluntary charitable giving is generally not subtracted. If contributions are court-ordered or part of a mandatory employment condition, they may be treated differently.

What child-related expenses are deductible on the PA means test?

Court-ordered child support and spousal support payments are deductible on the long-form means test. Reasonable childcare expenses needed for employment are also generally deductible. Private school tuition, extracurricular activities, and similar discretionary expenses are usually not allowed as deductions.

What debts does Chapter 7 in Pennsylvania discharge?

Chapter 7 in Pennsylvania discharges most unsecured debts — credit cards, medical bills, personal loans, deficiency balances on repossessed vehicles, older income tax debt, and most judgments. Student loans, recent taxes, domestic support, and criminal fines generally survive.

How much does it cost to file Chapter 7 in Pennsylvania?

The court filing fee for Chapter 7 is $338 as of 2026. Two required credit-counseling courses cost roughly $10–$50 combined. Attorney fees vary; our firm charges a flat fee quoted in writing before you engage us.

How long does Chapter 7 take in Pennsylvania?

A typical Pennsylvania Chapter 7 case is discharged about 90 days after filing. The automatic stay stops wage garnishments, foreclosure, repossession, and creditor calls the moment the petition is filed.

Is Social Security counted in the PA means test?

No. Social Security retirement and disability benefits are excluded from Current Monthly Income under 11 U.S.C. § 101(10A) and are not counted against the Pennsylvania median.

Do unemployment benefits count as income on the Pennsylvania bankruptcy means test?

Yes. Unemployment compensation is treated as income for means-test purposes. It is included in your Current Monthly Income for the six-month lookback period, even though it is not taxable in many cases. The amount you actually received during each of the six months before filing is what matters.

How does the timing of unemployment benefits affect my Pennsylvania Chapter 7 means test?

The means test looks backward at the six calendar months before filing. If your unemployment benefits were higher in some months and lower in others, only the actual amounts received during that six-month window are averaged. A recent drop in benefits can lower your average income and may help you pass the means test.

Can I still file Chapter 7 in Pennsylvania if I am currently unemployed?

Often yes. Unemployment does not prevent you from filing Chapter 7; it may actually help you pass the means test because your Current Monthly Income is reduced. You must still complete the required credit counseling and disclose all income received during the six-month lookback, including any unemployment payments.

How do I calculate self-employment income for the Pennsylvania bankruptcy means test?

Use your net self-employment income for the six months before filing. Add gross receipts, then subtract ordinary and necessary business expenses paid during that period. Divide the total by six to get your average monthly self-employment income. Losses can reduce your total household income, which may help you pass the means test.

What business expenses can I deduct for self-employment on the PA means test?

You can deduct business expenses that are ordinary, necessary, and actually paid during the six-month lookback period. Common examples include supplies, mileage, advertising, insurance, rent, equipment, subcontractors, and professional fees. Depreciation is not a cash expense and generally is not subtracted. The long-form means test (Form 122A-2) also has separate deductions for taxes, payroll, and certain operating costs.

Do I use gross or net income from my business on the Pennsylvania Chapter 7 means test?

Net. The means test looks at income from all sources, including self-employment, but business expenses are not treated as personal income. Grossing up your business revenue without subtracting expenses would overstate your ability to repay creditors and could wrongly push you above the Pennsylvania median.

Are retirement contributions counted as income on the Pennsylvania bankruptcy means test?

Retirement contributions are generally not counted as income on the short-form means test. Current Monthly Income is based on gross wages and other income received before voluntary deductions, including 401(k) or IRA contributions. On the long-form means test (Form 122A-2), retirement contributions are not a standard deduction, though mandatory contributions required by an employer may be treated differently.

Can I deduct 401(k) or IRA contributions on the PA means test?

Voluntary 401(k) or IRA contributions are not deductible on the means test. The test measures your ability to repay creditors using IRS-allowed living expenses and certain required payments, not voluntary savings. Stopping voluntary contributions temporarily is often a realistic step when a bankruptcy filing is under consideration.

Do employer retirement contributions affect my Chapter 7 means test in Pennsylvania?

Employer matching or profit-sharing contributions are not treated as income to you on the means test because they are not paid to you directly. Your Current Monthly Income is calculated from the income you actually receive, so those contributions do not push you above the Pennsylvania median.

How is 1099 income treated on the Pennsylvania Chapter 7 means test?

1099 income is included in your Current Monthly Income if it was actually received during the six-month lookback period. This covers independent-contractor payments, gig-economy earnings, consulting fees, and other non-employee compensation. Use your net amount after ordinary business expenses; the means test looks at what you actually took in, not the gross 1099 figure.

What 1099 income do I have to disclose on the PA bankruptcy means test?

You must disclose all income received during the six calendar months before filing, regardless of whether it was reported on a 1099-NEC, 1099-K, or cash. Include payments from clients, platforms, side work, and one-time projects. Omitting income can cause a presumption of abuse or case dismissal, so accuracy matters.

Can I deduct estimated tax payments on the Pennsylvania Chapter 7 means test?

Estimated federal, state, and local income tax payments you actually made during the six-month lookback can generally be deducted as tax expenses on the long-form means test (Form 122A-2). The deduction is limited to the taxes you actually paid during the lookback period, not the total amount you may eventually owe.

How do quarterly estimated tax payments affect my PA means test average income?

Quarterly estimated tax payments are treated as expenses, not as a reduction of income. You still report the income when it was received, then deduct the estimated tax payments as a tax expense on the long form. This distinction matters because the means test averages gross receipts first, then subtracts allowed deductions.

Is depreciation a deductible business expense on the Pennsylvania bankruptcy means test?

No. Depreciation is a non-cash accounting entry, not an actual out-of-pocket expense. The means test only allows deductions for expenses that were actually paid during the six-month lookback period. Add back depreciation and similar non-cash items when calculating net self-employment income.

What business expenses are not deductible on the PA Chapter 7 means test?

Non-cash expenses like depreciation, amortization, and non-recourse debt forgiveness are generally not deductible. Personal expenses mixed into a business return must be separated out. Only ordinary, necessary, and actually paid business costs tied to the lookback period reduce your self-employment income.

Should I use my tax return or bank records to figure 1099 income for the PA means test?

Bank records and accounting ledgers are usually more accurate than a tax return because the means test focuses on the six months before filing, not the last calendar year. A 1099 shows annual gross amounts, but the timing and net amount you actually received during the lookback period is what counts for the Pennsylvania means test.