Yes. You can file bankruptcy with income in Pennsylvania. Most people who file are still working. The law does not require you to be unemployed.
Income alone does not decide eligibility. The court looks at how much you earn, how many people are in your household, what your necessary expenses are, and the type of debt you have. Those factors are used to determine whether Chapter 7 bankruptcy in PA is available or whether Chapter 13 is more appropriate.
Chapter 7 can eliminate qualifying unsecured debt. Chapter 13 is used when income is steady, and repayment is required. A Chapter 7 bankruptcy lawyer can help confirm which option applies before you file.
How Income Is Evaluated for Bankruptcy in Pennsylvania
Courts use income to decide which type of bankruptcy applies. They do not use it to block someone from filing.
What matters most is not just what you earn, but how that income looks on paper after required expenses.
Gross income vs. disposable income
Gross income is what you earn before taxes. Disposable income is what remains after allowed living expenses. Disposable income carries more weight.
Household size
Income is measured against the number of people you support. A larger household raises the income threshold.
Six-month lookback period
The court looks at your average income from the last six months. Overtime, bonuses, and uneven pay are included.
Income is reviewed differently depending on the chapter.
Chapter 7 bankruptcy in PA
Income is used to apply the means test and determine whether debt can be discharged.
Chapter 13 bankruptcy
Steady income is expected and used to set a three- to five-year repayment plan.
Income shapes the outcome. It does not prevent filing.
What Are the Chapter 7 Income Limits in Pennsylvania for 2025?
If your income is below the median, you usually qualify. If it is above the median, you are not automatically disqualified. The court then allows deductions for required expenses such as housing, utilities, transportation, taxes, insurance, and secured debt. Many filers still qualify after these deductions because they have little or no disposable income.
These thresholds are commonly referred to as the Chapter 7 bankruptcy eligibility income limits 2025.
What income is too high for Chapter 7 in PA?
There is no set cutoff. It depends on household size, expenses, and total income.
Can I pass the means test with a job?
Yes. Many employed filers qualify after deductions are applied.
What Are the Chapter 13 Income Limits in Pennsylvania for 2025?
Chapter 13 Bankruptcy is designed for people who have a steady, predictable income. Unlike Chapter 7, income is not a problem here — it is a requirement. You must show that you can make regular payments to a court-approved plan.
Under Chapter 13, debts are repaid over three to five years. The payment amount is based on your income, reasonable expenses, and the type of debt you owe. In exchange, Chapter 13 can stop wage garnishments, sheriff sales, foreclosures, and vehicle repossessions, as long as the plan is followed.
The key difference from Chapter 7 is that Chapter 13 does not rely on the means test to eliminate debt outright. Instead, it gives higher earners a structured way to manage debt they cannot immediately discharge. A Chapter 7 bankruptcy attorney will often recommend Chapter 13 when income is too high to qualify for Chapter 7, but relief is still needed.
“I make too much for Chapter 7 — is Chapter 13 my only option?”
In many cases, yes. Chapter 13 is often the correct path when income exceeds Chapter 7 limits, but debt relief is still necessary.
Can You Be Denied Bankruptcy Because You Make Too Much Money?
No. You are not denied bankruptcy simply because you earn too much. Income does not bar you from filing bankruptcy in Pennsylvania.
What income can affect is eligibility for Chapter 7. If your income is too high under the means test, you may not qualify for a Chapter 7 discharge. That does not end the process. In most cases, the alternative is Chapter 13, which is built for people with regular income.
Very few cases are dismissed outright based on income alone. Courts expect higher earners to repay some debt, not to be excluded from bankruptcy protection altogether.
Does income disqualify you from bankruptcy in PA?
No. Income determines which chapter applies, not whether bankruptcy is available.
Who Can File Bankruptcy in PA Even With Income?
Here are common situations where people can file bankruptcy with income in Pennsylvania:
- Single filer earning $55,000
High medical bills or credit card debt leave little disposable income. - Family of four earning above the median
Mortgage, childcare, and transportation costs reduce what’s actually available. - W-2 employee with a wage garnishment
Income is steady, but debt collection makes it unmanageable. - Self-employed contractor
Income fluctuates month to month and averages lower over the six-month period.
In each case, the issue isn’t having income — it’s whether that income realistically allows debt repayment. Many working filers qualify once expenses, household size, and debt type are taken into account.
How to Know Which Bankruptcy You Qualify For?
- Calculate all income from the last six months
- Compare it to the Pennsylvania median income for your household size
- Subtract allowed living expenses
- Review your debt type
Low disposable income points to Chapter 7 bankruptcy in PA.
Higher, steady income usually fits Chapter 13.
Many people confirm eligibility with a Chapter 7 bankruptcy lawyer before filing.
Final Takeaway
Income does not block bankruptcy in Pennsylvania. It determines which chapter applies. Many working people qualify for Chapter 7, while others need Chapter 13. The right choice depends on income, expenses, and debt. A Chapter 7 bankruptcy attorney can help confirm the best path before you file.