Pennsylvania Bankruptcy Laws
The state of Pennsylvania is divided into three bankruptcy districts: Pennsylvania Eastern Bankruptcy Court, Pennsylvania Middle Bankruptcy Court and Pennsylvania Western Bankruptcy Court. These courts serve the entire state of Pennsylvania.
Pennsylvania Bankruptcy Exemptions
According to the Lawyers.com website, you can choose one of two "exemption schemes" in Pennsylvania: federal or Pennsylvania state.
Under federal bankruptcy laws, you can keep:
- Your home, including co-op or mobile home, to $20,200
- Life insurance payments for person you depended on, needed for support
- Life insurance policy with loan value, in accrued dividends or interest to $10,775
- Unmatured life insurance contract, except credit insurance policy
- Alimony, child support needed for support
- Pensions and Retirement Benefits, ERISA - qualified benefits needed for support
- $525 per item in any household goods up to $10,775
- Health Aids
- Jewelry to $1,350
- Lost earnings payments
- Your motor vehicle to $3,225
- Personal injury compensation payments to $20,200, wrongful death payments, crime victims' compensation, public assistance, social security, unemployment compensation, and veterans' benefits
- Tools of trade up to $20,200
- Wild Card - $1,075 of any property plus up to $10,125 of any amount of unused homestead exemption
Under Pennsylvania bankruptcy laws, you can generally keep:
- Wearing apparel
- Bibles and school books
- Sewing machines belonging to seamstresses or used and owned by private families
- Uniforms and accouterments
- Qualified retirement funds and accounts
- Pension or annuity
- Insurance proceeds
- Social security benefits
- Workers' compensation benefits
- Up to $300 in bank notes, money, securities, real property, judgments or other indebtedness due you
NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.
New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.
This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.
Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.
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