Pennsylvania’s median income is the primary factory in determining if a debtor will be filing for a chapter 7 or a chapter 13 bankruptcy. If the household income (for your family size) is below the median level you are eligible for a chapter 7, but if the household income is above the median level then you must take the PA means test to determine if you make enough to repay part of all of your debts through a chapter 13 bankruptcy.
Since the median income has increased since last year – due to economic conditions – more people will now be eligible for a chapter 7 bankruptcy. This can help when applying for a new line of credit, like a car loan, after bankruptcy. How? Well, although auto loans during bankruptcy are available if you are discharged you will be offered lower rates, and because a chapter 7 is only 3-5 months compared to 3-5 years in chapter 13 it will help Pennsylvania debtors get a new or used car quicker.
PA Median Incomes Past and Present
Pennsylvania Median Income for cases filed November 1, 2011 - March 31, 2013
- Individual | $46,477
- Family of 2 | $54,091
- Family of 3 | $67,452
- Family of 4* | $80,411
*Add $8,100 for each additional family member over four.
Source: U.S. Census Bureau
Pennsylvania Median Income for cases filed beginning April 1, 2013
- Individual | $47,439
- Family of 2 | $55,210
- Family of 3 | $68,848
- Family of 4* | $82,078
*Add $8,100 for each additional family member over four.
Source: U.S. Census Bureau
Find Pennsylvania Bankruptcy Auto Financing Lenders
If you are under insurmountable debt and are contemplating filing for a bankruptcy keep in mind that you will come out with a poor credit score which can make finding lenders a difficult process. Here at BankruptcyAutoFinancing.com we have a network of Pennsylvania subprime lenders that specialize in helping individuals with a bankruptcy on their history get into an affordable car loan.
Apply with us online today to see what you could be prequalified for. Once we have received your application you will be contacted by a PA financial specialist who will walk you through the process, and get you set up to meet with a local Pennsylvania dealer accepting bankruptcy clients.
Remember we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.
