Am I Eligible to File for Bankruptcy?
Chapter 7 Eligibility and the Means Test
Before you can file Chapter 7 bankruptcy, you must pass what is known as a means test. As long as you earn less than the Pennsylvania median income for your household size for the past six months, you can file Chapter 7 bankruptcy.
In Pennsylvania, median incomes are the following:
- $47,809 for a single person
- $56,690 for a family of two
- $71,119 for a family of three
- $83,162 for a family of four
- $91,162 for a family of five
Even if you earn more than the median income, you may be eligible to file Chapter 7 bankruptcy based on your disposable income under certain circumstances. Child support payments, as well as other certain factors may affect your situation.
If you have enough disposable income to pay off certain debts, you may not be eligible to file for Chapter 7 bankruptcy. When you do earn more than the media income amounts listed above, filing Chapter 7 bankruptcy become much more difficult.
If you earn too much money to file Chapter 7 bankruptcy, you may be eligible for Chapter 13 bankruptcy. Even if you are eligible for Chapter 7 bankruptcy, Chapter 13 may would be a better option if you have significant assets that wouldn’t be protected in a Chapter 7 filing or if you are behind on your mortgage and want to save your house.
Use the bankruptcy means calculator to gauge your eligibility to file for bankruptcy in Pennsylvania.