Bankruptcy Exemptions in Pennsylvania
What property you can keep in bankruptcy in Pennsylvania: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Real property can be covered only by the $300 general monetary exemption, which applies to any property of the debtor (it does not apply against the mortgage in a foreclosure judgment on that property). 42 Pa.C.S. § 8123(a), (b)(5)
| Homestead exemption | Real property can be covered only by the $300 general monetary exemption, which applies to any property of the debtor (it does not apply against the mortgage in a foreclosure judgment on that property). Source: 42 Pa.C.S. § 8123(a), (b)(5) |
|---|---|
| Car exemption | A vehicle can be covered only by the $300 general monetary exemption, which applies to any property of the debtor. Source: 42 Pa.C.S. § 8123(a); § 8124(a) |
| Wildcard exemption | A general exemption of $300 in value applies to any property of the debtor, including money, bank notes, securities, real property, and debts owed to the debtor. The debtor may pick the specific items it covers or take it in cash from sale proceeds. It does not apply to judgments for support, for board for four weeks or less, for $100 or less in wages for manual labor, or in a mortgage foreclosure as to the mortgaged property. Source: 42 Pa.C.S. § 8123 |
| Retirement accounts | Exempt are certain public employee pensions (public school, state employee and municipal retirement systems, subject to the Public Employee Pension Forfeiture Act), private employer pensions or annuities that cannot be assigned, self-employed retirement funds (up to amounts deducted for federal tax), and retirement or annuity funds under Internal Revenue Code sections 401(a), 403(a) and (b), 408, 408A, 409 or 530, including growth, income, benefits, and rollovers. For the IRC-qualified funds, the protection does not cover amounts the debtor contributed within one year before filing for bankruptcy, contributions over $15,000 in any one-year period (rollovers excepted), or amounts found to be fraudulent conveyances. Source: 42 Pa.C.S. § 8124(b) |
| Wages | Wages, salaries and commissions are exempt from attachment while they are in the employer's hands, except in actions for divorce-related orders, support, board for four weeks or less, final residential-landlord judgments (limited to 10% of net wages per pay period or an amount that keeps net income above the federal poverty guideline, whichever is less), Pennsylvania Higher Education Assistance Agency student loans, and criminal restitution, costs, fines or bail. An employer may not take adverse action against an employee solely because their wages were attached. Source: 42 Pa.C.S. § 8127(a), (e) |
More Pennsylvania bankruptcy
FAQ
How much home equity is protected in bankruptcy in Pennsylvania?
Real property can be covered only by the $300 general monetary exemption, which applies to any property of the debtor (it does not apply against the mortgage in a foreclosure judgment on that property).
Can I keep my car in bankruptcy in Pennsylvania?
A vehicle can be covered only by the $300 general monetary exemption, which applies to any property of the debtor.
Does Pennsylvania have a wildcard exemption?
A general exemption of $300 in value applies to any property of the debtor, including money, bank notes, securities, real property, and debts owed to the debtor. The debtor may pick the specific items it covers or take it in cash from sale proceeds. It does not apply to judgments for support, for board for four weeks or less, for $100 or less in wages for manual labor, or in a mortgage foreclosure as to the mortgaged property.
Are retirement accounts protected in bankruptcy in Pennsylvania?
Exempt are certain public employee pensions (public school, state employee and municipal retirement systems, subject to the Public Employee Pension Forfeiture Act), private employer pensions or annuities that cannot be assigned, self-employed retirement funds (up to amounts deducted for federal tax), and retirement or annuity funds under Internal Revenue Code sections 401(a), 403(a) and (b), 408, 408A, 409 or 530, including growth, income, benefits, and rollovers. For the IRC-qualified funds, the protection does not cover amounts the debtor contributed within one year before filing for bankruptcy, contributions over $15,000 in any one-year period (rollovers excepted), or amounts found to be fraudulent conveyances.
Are wages protected in bankruptcy in Pennsylvania?
Wages, salaries and commissions are exempt from attachment while they are in the employer's hands, except in actions for divorce-related orders, support, board for four weeks or less, final residential-landlord judgments (limited to 10% of net wages per pay period or an amount that keeps net income above the federal poverty guideline, whichever is less), Pennsylvania Higher Education Assistance Agency student loans, and criminal restitution, costs, fines or bail. An employer may not take adverse action against an employee solely because their wages were attached.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.