How Do I Know Which Type of Bankruptcy I Qualify For?
To know which type of bankruptcy you qualify for in Harrisburg, the answer depends on your income, assets, and financial goals. Most individuals file either Chapter 7, which wipes out many unsecured debts, or Chapter 13, which sets up a repayment plan.
At Cunningham, Chernicoff & Warshawsky, P.C., our Harrisburg bankruptcy attorneys can help you determine the right chapter for you by running the means test, reviewing your property, and explaining what each option would mean for your life.
Why Eligibility for Bankruptcy is Different For Everyone
Even if you and your neighbor have the same credit card balance, you could qualify for different bankruptcy types because eligibility hinges on more than just debt amounts. The bankruptcy means test compares your household income to Pennsylvania’s median. The official 2025 Pennsylvania median family income thresholds for means testing (for cases filed on or after May 15, 2025) are:
- 1 person: $67,676
- 2 people: $83,249
- 3 people: $103,856
- 4 people: $125,754
For households larger than four, add $11,100 for each additional member.
You may qualify for Chapter 7 if your income falls below these levels. If you’re above, you may be directed toward Chapter 13 unless you can prove high necessary expenses, such as medical care or child support. Assets likewise matter. For instance, if you own a home with significant equity, Chapter 13 may be the safer route because Pennsylvania exemption laws might not shield all of it in Chapter 7. Each case requires precise calculations, not guesswork.
How Do Different Types of Bankruptcy Work?
Chapter 7 erases unsecured debts, including credit cards or medical bills, usually within a few months. However, you risk losing property if it isn’t covered by exemptions. There are also the above-mentioned requirements for Chapter 7, which means higher earners might not qualify. Further, this type of liquidation bankruptcy might not be the best option based on the type of debts you have.
Chapter 13 allows you to keep your assets but does not result in a quick discharge of your debts. Instead, this type of case requires a three to five-year repayment plan, which means you must have regular income and be able to afford payments to qualify. This plan can help you catch up on missed mortgage payments and prevent foreclosure, and a discharge of non-priority debts can happen at the successful completion of your repayment plan.
How a Harrisburg Bankruptcy Attorney Helps You Determine the Right Path
Working with a lawyer ensures you get the right protection and avoid mistakes that could derail your case. Your Harrisburg bankruptcy attorney can run the means test correctly, apply exemptions to protect your home and car, and determine whether Chapter 7 or Chapter 13 offers the best outcome.
They also know how to respond when creditors object. If a creditor argues you filed in bad faith or claims your exemptions don’t apply, your attorney can push back. Without that, one objection could undo months of preparation.
Connect With Our Harrisburg Bankruptcy Lawyers
If you’re unsure whether you qualify for Chapter 7 or Chapter 13, talk to our Harrisburg bankruptcy lawyers. Contact Cunningham, Chernicoff & Warshawsky, P.C., online or at 717-260-3527 for your free consultation.