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Philadelphia Bankruptcy Attorney Dan Mueller of Harborstone Law Group represents consumers in bankruptcy and debt negotiation matters throughout Philadelphia, Montgomery County, Delaware County, and Bucks County in Pennsylvania.

Pennsylvania Median Income – Current Figures for Bankruptcy for 2014

Crossing GraphsThe Pennsylvania median income is the primary factor in establishing whether a Pennsylvania debtor may file for bankruptcy under Chapter 7 or must instead file under Chapter 13. (The 2013 to 2014 figures are below.) A debtor whose income is below the Pennsylvania median income for the debtor’s family size is presumed to be eligible to file under Chapter 7. On the other hand, a debtor whose income is above the state median must take the Chapter 7 means test to determine whether he or she must file under Chapter 7 or Chapter 13.

The median also bears on the length of time of any Chapter 13 plan. Debtors with earnings under the state median may enter a 36-month plan rather than a 60-month plan.

For bankruptcy purposes, the state medium income is taken from U.S. Census Bureau data, which is posted periodically by the United States Trustee. The current Pennsylvania median income figures for 2014 are as follows:

Individual Family of 2 Family of 3 Family of 4*
$47,809 $56,690 $71,119 $83,162
*For each additional family member over four, add $8100.   Applies to cases filed on or after April 1, 2014.  Source: U.S. Census Bureau.

 

 

 

 

 

For cases filed between November 15, 2013 and March 31, 2014, the Pennsylvania median income figures are:

Individual Family of 2 Family of 3 Family of 4*
$47,119 $55,872 $70,092 $81,961
*For each additional family member over four, add $8100.   Applies to cases filed on or after November 15, 2013.  Source: U.S. Census Bureau.

 

 

 

 

 

As you can see, income levels in Pennsylvania have increased for families of two and three and have dropped a bit for individuals and families of 4 since the last income figures were released. The median income rises and falls, depending on economic conditions. As a Philadelphia bankruptcy attorney,  I witness the effects of this up-and-down cycle on people throughout the greater Philadelphia area everyday. Increases in median income, when they occur, are often too small to make much of a difference to most people. However, an increase is better than a drop, because a drop in the median means not only less household income for many families, but also more debtors required to take the means test (if their income is above the median for their family size). For more information on the role that the Pennsylvania median income plays in bankruptcy, see my posts Avoiding the Means Test and  High-Income Chapter 7 Bankruptcy: Crossing the Threshold. You can find additional information about the this subject on our main website and our Bankruptcy FAQ.

The median income for Pennsylvania is republished here for convenience only.  It is always a good idea to review the current figures on the DOJ-U.S. Trustee website.

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