The Pennsylvania median income increased again for most families as of May 15, 2023, meaning more debtors will qualify for Chapter 7 Bankruptcy in 2023. For Chapter 13 debtors, the median income determines whether the debtor may enter a thirty-six or sixty-month Chapter 13 plan and how much they must pay in their Chapter 13 plan.
Don't assume that your high income will prevent you from filing for Chapter 7 bankruptcy in Pennsylvania. Income alone does not determine if you should file for Chapter 7 or Chapter 13 bankruptcy or pursue a non-bankruptcy option.
What is the bankruptcy means test? How does it work, and why does it matter in Pennsylvania bankruptcy? A Philadelphia bankruptcy lawyer explains how the means test can enable more debtors to file for Chapter 7 bankruptcy.
If you have to take the bankruptcy means test, keep in mind that there is a high likelihood of passing. Moreover, you may have options even if you do not pass the test.