When filing for Chapter 7 or 13 bankruptcy, there are certain exemptions—assets or properties you are allowed to keep. Exemptions are different for each state, and if you’re thinking of filing for bankruptcy, it’s important to know the exemptions for our home state, Pennsylvania.
Homestead
No exemption for homestead property in Pennsylvania. However, if filer has property held as a tenancy by the entirety (i.e. a form of joint ownership of property between spouses), the property may be exempt from creditors of the debts of a single spouse.
Personal Property
The following personal property may be exempt, either wholly or up to the dollar amount given:
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Bibles and schoolbooks
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Clothing
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Military uniforms and paraphernalia
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Sewing machines
Insurance
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$100 per month of cash values or proceeds of insurance policy or annuity contract payments where insured is the beneficiary
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Life insurance annuity policy cash value or proceeds if beneficiary is spouse, child or dependent
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Life insurance proceeds, if policy includes a clause prohibiting proceeds from being used to pay the creditors of the beneficiary
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Group life insurance policy or proceeds
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Accident or disability benefits
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Fraternal benefits society benefits
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No-fault car insurance proceeds
Pensions (note: tax-exempt retirement accounts such as 401(k)s, 403(b)s, defined benefit plans, and IRAs and Roth IRAs up to $1,095,000 are exempt under federal law)
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Private retirement benefits, to the extent that they are tax-deferred, if benefits package includes a clause prohibiting proceeds from being used to pay the creditors of the beneficiary; limit of $15,000 per year made at least 1 year before filing (rollovers from other exempt funds or accounts do not count towards the limit)
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Pensions for the following occupations are exempt under PA law:
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City employees
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County employees
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Municipal employees
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Police officers
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Public school employees
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State employees
Public Benefits
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Crime victims’ compensation
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Korean war veterans’ benefits
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Unemployment benefits
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Veterans’ benefits
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Workers’ compensation
Miscellaneous
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Wages:
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Earned but unpaid wages
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Prison inmate’s wages
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Wages of victims of abuse
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Property of business partnership
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Seamstress’s sewing machine
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$300 of any property, including cash, real estate, securities, or sale proceeds of any exempt property
[from the Public Library of Law]
Harold Shepley & Associates is a full service debt relief law firm and can answer any questions you may have about debt and bankruptcy. Contact us today for a free consultation.
Tagged: asset, exemption laws, Pennsylvania bankruptcy attorney, property
