Pennsylvania Bankruptcy Laws

Federal filing fee for Chapter 7 bankruptcy. Fee waivers available for qualifying low-income filers.

Federal filing fee for Chapter 13 bankruptcy.

You must complete credit counseling from an approved agency within 180 days before filing and a debtor education course before discharge.

You must have been domiciled in Pennsylvania for at least 730 days (2 years) before filing to use Pennsylvania exemptions (or federal exemptions if PA allows). Otherwise, your prior state's exemptions may apply.

Pennsylvania is one of the few states with NO homestead exemption. This means your home equity is not protected under state exemptions. However, Pennsylvania allows filers to choose federal bankruptcy exemptions, which include a homestead exemption of approximately $27,900 (adjusted periodically).

Pennsylvania has not opted out of federal bankruptcy exemptions under 11 U.S.C. § 522(b)(2), so filers may choose between state and federal exemptions. This is often the better choice because the federal exemptions include a homestead exemption that Pennsylvania state law does not provide. State law additionally prohibits waiver of statutory exemptions (42 Pa.C.S. § 8122).

State exemptions protect: $300 in cash or bank deposits, wearing apparel, Bibles and schoolbooks, sewing machines, and $300 of other personal property. These are notably low compared to most states.

Retirement accounts including 401(k)s, 403(b)s, IRAs, and pensions are exempt. IRAs are protected up to approximately $1,512,350 per person. Employer-sponsored plans are fully exempt under federal ERISA protections.

Earned but unpaid wages are generally 100% exempt from execution in Pennsylvania, except for claims related to support obligations, landlord-tenant disputes, and certain board or housing charges.