Bankruptcy in Puerto Rico: Court, Fees and Means Test 2026

Personal bankruptcy in Puerto Rico follows the same federal Bankruptcy Code as the mainland. You file in the U.S. Bankruptcy Court for the District of Puerto Rico, which has offices in Old San Juan and Ponce, and cases run in English. Chapter 7 costs $338 to file and Chapter 13 costs $313. Two things are local: the means test uses Puerto Rico's lower median incomes, and you can protect your home under Puerto Rico's homestead law.

This guide covers who can file the 2026 numbers, how exemptions work on the island, the step-by-step process, and the downsides and alternatives to weigh first.

Personal bankruptcy vs Puerto Rico's government "bankruptcy"

Most news about "bankruptcy in Puerto Rico" is about the government, not individuals. Congress passed PROMESA, the Puerto Rico Oversight, Management, and Economic Stability Act, on June 30, 2016, when the island's public debt totaled just over $70 billion. The oversight board filed the Commonwealth's restructuring case on May 3, 2017, and its plan of adjustment took effect on March 15, 2022 (Congressional Research Service).

PROMESA applies only to the Commonwealth and its public entities. Puerto Rico's municipalities also can't use Chapter 9, the chapter for local governments on the mainland, and the Supreme Court held in 2016 that Puerto Rico can't pass its own municipal bankruptcy law (Puerto Rico v. Franklin California Tax-Free Trust).

None of that changes the options for people. Individuals and families in Puerto Rico file under the same chapters as anyone in the 50 states.

The Puerto Rico bankruptcy court

All personal bankruptcy cases on the island go to the U.S. Bankruptcy Court for the District of Puerto Rico.

Sources: court locations, Ponce office. The clerk's case information line is (787) 977-6000, and the clerk does not accept personal checks from debtors (court FAQ).

Language: cases run in English

Federal law requires that "all pleadings and proceedings" in the federal district court for Puerto Rico be conducted in English (48 U.S.C. 864). In practice, documents in Spanish, such as a deed or a lease, generally need a certified English translation before the court will consider them. The court offers interpreter services and a Spanish video series, "Fundamentos del Proceso de Quiebra," and its website can be machine translated, though the court says that version is "only an approximation."

Trustees and the 341 meeting

The U.S. Trustee Program oversees Puerto Rico cases from its Region 21 office in San Juan. The standing Chapter 13 trustees are Osmarie Navarro Martínez and José R. Carrión (U.S. Trustee Program, Region 21).

Your meeting of creditors, called the 341 meeting, is held by Zoom. That has been the rule for all Chapter 7, 12 and 13 cases in Puerto Rico since October 2, 2023, with alternatives if you can't attend by video. You must attend; creditors usually don't.

Chapter 7 vs Chapter 13 in Puerto Rico

Puerto Rico residents can use the same chapters as the mainland. Chapter 7 and Chapter 13 are the two used by most households.

Chapter 13 is unusually common on the island. In the 12 months ending September 30, 2026, Puerto Rico had 6,250 bankruptcy filings: 3,874 under Chapter 13 (62%) and 2,289 under Chapter 7. Nationally, only about 35% of filings were Chapter 13 (U.S. Courts, Table F-2).

For more on choosing, see our guide to the difference between Chapter 7 and Chapter 13 bankruptcy.

Chapter 11 (reorganization for businesses and high-debt individuals, $1,738 to file) and Chapter 12 (family farmers and fishermen, $278) are also available. In the same 12 months, Puerto Rico had 80 Chapter 11 filings and 7 Chapter 12 filings.

The means test in Puerto Rico (2026 figures)

To file Chapter 7, you generally must pass the means test. The first step compares your household's average income over the six months before filing, annualized, with the median for Puerto Rico. If you're at or below the median, you pass that step. If you're above it, a longer calculation subtracts allowed expenses to see whether you could repay creditors.

Puerto Rico's medians are much lower than the states' figures. For cases filed on or after April 1, 2026, the U.S. Trustee Program lists:

Source: U.S. Trustee Program median income table. The same figures apply in the table for cases filed on or after July 15, 2026. The table shows the same amount for one and two people.

If you're above the median, the longer calculation uses IRS expense standards. Puerto Rico has its own IRS housing and utilities allowances by municipio. For one person they are $1,344 a month in San Juan, $1,054 in Ponce and $1,096 in Mayagüez (IRS, Puerto Rico housing and utilities standards).

Our Chapter 7 means test calculator guide walks through the full calculation.

What you can keep: Puerto Rico vs federal exemptions

Exemptions decide what property you keep. In Puerto Rico you choose one of two sets:

•         The federal exemptions in 11 U.S.C. 522(d).

•         Puerto Rico's local exemptions, which include the island's homestead protection.

Puerto Rico law makes this an either-or choice. Under Act 257-2012, you give up the Puerto Rico homestead protection if you claim the federal exemptions instead of the local ones (Act 257-2012).

The Puerto Rico homestead law

Act 195-2011, the Home Protection Act, protects the principal residence of a person or family domiciled in Puerto Rico. The First Circuit Bankruptcy Appellate Panel has said the law raised the protection "from $15,000 to the equity in the property" and aims "to provide the broadest protection" to residents' homes. It also held that recording the homestead in the Property Registry is not required to claim it (In re Rivera, BAP No. PR 19-067, 2021).

There are limits. The protection does not apply against mortgages, federal and Puerto Rico taxes, or contractors who worked on the home, among other exceptions (McConnell Valdés summary of Act 195-2011). The federal court in Puerto Rico has held that it covers only the part of a property you use as your home, so a rented unit in the same building isn't protected (Oliveras Rivera v. Otero Nazario, D.P.R. 2019).

The federal exemptions

For cases filed on or after April 1, 2025, key federal exemption amounts are:

Source: Federal Register, February 4, 2025. These amounts adjust every three years.

As a rule of thumb, homeowners with real equity often look first at the Puerto Rico homestead, while renters may protect more with the federal wildcard. The right choice depends on all your property, so this is a question for a Puerto Rico bankruptcy attorney.

Step by step: filing bankruptcy in Puerto Rico

1.       Take credit counseling within 180 days before you file, from an agency approved for Puerto Rico. The U.S. Trustee Program lists 34 approved agencies for the district, 24 of them offering Spanish, including two based on the island: Consumer Credit Counseling Service of Puerto Rico and One Stop Career Center of Puerto Rico (approved agencies). File the certificate separately from your petition.

2.       Gather your income records for the last six months, tax returns, debts, property and monthly expenses, and run the means test.

3.       File your petition and schedules in English with the court, and pay the fee. You can ask to pay in installments: Puerto Rico's local rule requires $50 at filing and the rest in up to three payments, 30 days apart (local rules). If your income is below 150% of the poverty level and you can't pay in installments, you can ask the court to waive the Chapter 7 fee (U.S. Courts).

4.       Filing creates the automatic stay, which generally stops most collection actions, including lawsuits, garnishments and foreclosure, while the case is open.

5.       Attend the 341 meeting by Zoom and answer the trustee's questions under oath.

6.       In Chapter 13, make the plan payments to the trustee. In Chapter 7, the trustee reviews your assets.

7.       Complete a debtor education course from an approved provider before you can get a discharge.

8.       Receive the discharge, which wipes out the debts that qualify.

Filing without a lawyer is allowed, but the court's own FAQ says "it may be difficult to do so successfully" and recommends talking to an attorney (court FAQ).

Free and low-cost help in Puerto Rico

The bankruptcy court's pro bono page lists these legal aid sources:

•         Servicios Legales de Puerto Rico.

•         Pro-Bono, Inc., the volunteer service of the Colegio de Abogados y Abogadas de Puerto Rico.

•         Law school clinics at the University of Puerto Rico, Inter American University and Pontifical Catholic University of Puerto Rico.

Call ahead, since hours and intake rules change.

If your home is in foreclosure, Puerto Rico's Law 184-2012 requires the court to send foreclosure cases on a principal residence to mediation. Attendance is mandatory, the court mediation is free and confidential, and you don't need a lawyer to take part (Poder Judicial de Puerto Rico).

If collectors are calling, Puerto Rico's Department of Consumer Affairs (DACO) licenses collection agencies. Its rules bar calls outside 8:00 a.m. to 9:00 p.m. and give you 30 days to dispute a debt in writing, with collection paused until the agency verifies it (DACO Regulation 6451).

Downsides of bankruptcy to weigh first

Sources: Experian, U.S. Courts. Our guide on how bankruptcy affects your credit score explains the recovery timeline.

Alternatives to bankruptcy

Bankruptcy isn't the only option for unsecured debt:

•         Credit counseling and a debt management plan: a nonprofit agency negotiates lower interest rates and you repay the full balance over a set period. See our credit counseling page.

•         Debt settlement: you stop paying creditors and save toward lump-sum offers for less than the balance. It usually damages your credit, creditors can refuse to settle or sue you while you save, settlement companies charge fees, and forgiven debt is often reported to the IRS on Form 1099-C and may be taxable income.

•         Negotiating directly with a lender, or asking about a hardship program.

If your main problem is a single mortgage, foreclosure mediation under Law 184-2012 may resolve it without a bankruptcy filing. For a broader comparison, see our bankruptcy page.

Frequently asked questions

Where is the Puerto Rico bankruptcy court?

The U.S. Bankruptcy Court for the District of Puerto Rico has its main office in the José V. Toledo Federal Building at 300 Calle del Recinto Sur, Old San Juan, and a second office at the MCS Building, 880 Tito Castro Avenue, Ponce. Both are open weekdays, 9 to 12 and 1 to 3.

Can I file for bankruptcy in Puerto Rico in Spanish?

No. Federal law requires bankruptcy proceedings in Puerto Rico to be in English, and Spanish documents generally need a certified translation. The court does provide interpreters and Spanish-language educational videos.

How much does it cost to file bankruptcy in Puerto Rico?

The court filing fee is $338 for Chapter 7 and $313 for Chapter 13. You can pay in installments, starting with $50 at filing, and the Chapter 7 fee can be waived for low-income filers. Attorney fees are separate.

What is the means test income limit in Puerto Rico?

For cases filed on or after April 1, 2026, the Puerto Rico median family income is $30,665 for one earner, $40,976 for a family of three and $50,543 for a family of four. Income at or below the median passes the first step of the Chapter 7 means test.

Does PROMESA affect my personal bankruptcy?

No. PROMESA covers the debts of Puerto Rico's government and public entities. Individuals file under the regular federal Bankruptcy Code, mainly Chapter 7 or Chapter 13.

This article is general information, not legal advice. Bankruptcy has lasting legal and credit consequences, so talk with a bankruptcy attorney licensed in Puerto Rico before you file. Ooraa, Inc. is a lead generation and marketing company and does not itself provide bankruptcy, debt settlement, credit counseling or legal services.