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Pennsylvania Bankruptcy Laws
With nearly three quarters of the filings in Pennsylvania fitting under the Chapter 7 bankruptcy code, it is essential that you know the exemptions available. Pennsylvania is one of the few states that does allow for federal exemptions, so you will have to decide which exemption list fits your needs. Here is a list of the Pennsylvania state exemptions:
Homestead |
None, but tenancies by the entirety are exempt without limit as to debts of one spouse. |
Personal Property |
$300 of any property; clothing, bibles, school books, sewing machines, uniform, and accoutrements. |
Wages |
Earned but unpaid wages; victims' of abuse wages; prison inmates' wages. |
Pensions |
Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000 per person; county employees; public school employees; private retirement benefits if plan provides benefits are not assignable up to $15,000 per year deposited and if deposited at least 1 year before filing; police officers; municipal employees; city employees; state employees. |
Public Benefits |
Crime victims' compensation; workers' compensation and unemployment compensation; veterans' benefits; Korean conflict veterans' benefits. |
Insurance |
Fraternal benefit society benefits; insurance or annuity payments up to $100 per month if insured is the beneficiary; annuity or life insurance proceeds if policy provides such proceeds are not assignable; group insurance policy or proceeds; annuity or life insurance proceeds if beneficiary is decedent's spouse, child, or other dependent relative; accident or disability insurance proceeds; no-fault automobile insurance proceeds. |
Miscellaneous |
Business partnership property. |
Once you know what type of bankruptcy code you will be filing, you have considered the different exemption options and fulfilled any financial counseling requirements necessary, you can go ahead and file your petition with the bankruptcy court. The bankruptcy trustee will normally set up what is known as a “341 meeting” with your creditors, so any questions they may have can be answered. Considering that your petition for bankruptcy is accepted, you will be able to move on with a clean financial slate in the case of Chapter 7 or begin satisfying you debts within the period established in the case of Chapter 13.
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