Bankruptcy and Judgments: What are the State Exemptions for Pennsylvania?
When filing for bankruptcy, or fighting a judgment, it’s important to understand what property and assets you can protect, as well as any earnings, savings and insurance you are entitle to claim as exempt. Declaring bankruptcy or being sued by a creditor doesn’t automatically mean that you will lose everything you have, but familiarizing yourself with the exemption laws for your state can ensure that you hang on to everything you are legally entitled to.
State exemptions for Pennsylvania.
As with other US residents, people living in Pennsylvania can claim property as exempt, so long as they have not used that property as security for a loan. The moment you sign over property as collateral for a loan, it ceases to be protected under exemption laws.
Exemptions that can be claimed for eligible property in Pennsylvania:
- While there is no homestead exemption in Pennsylvania, there is provision to claim under the common law of Tenancy by Entirety. This applies to married couples who own a home together (joint ownership). In the case of bankruptcy, Tenancy by Entirety holds the home exempt against the debts of one spouse only.
- There is also some provision made for wages. This extends to wages you have earned, but not been paid for, the wages of prison inmates and the wages of victims of abuse.
- Other provisions under the state exemptions for Pennsylvania include life insurance, savings and personal property. There is also a ‘wild card’ exemption, which applies to $300 of any property whether it is cash, real property, sale proceeds or securities. However, it is important to remember that most of these exemptions are extended to people who fit certain criteria and life circumstances. They are not generally applicable to all residents of Pennsylvania. As a result, it is important to thoroughly read the exemptions or consult with a professional to ensure that you claim your legal entitlements.
Residents of Pennsylvania should also note that the state gives a choice of complying with the state exemptions for Pennsylvania or the Federal Bankruptcy Code. This means you can choose the system that gives you the most benefits, but you cannot use a combination of state and federal laws. You must apply the laws of one system consistently. This is a requirement even if you are married – both spouses must claim under the same system of laws.
When investigating your options when faced with filing for bankruptcy, compare your state exemptions with the Federal Bankruptcy Code. The choice of system will depend on individual circumstances, so it is best to know your entitlements under both before deciding which laws to use.
Reference: http://www.legalconsumer.com/bankruptcy/bankruptcy-law.php?&ST=PA
Related posts:
- Bankruptcy and Judgments: What are the State Exemptions for South Dakota?
- Bankruptcy and Judgments: What are the State Exemptions for Rhode Island?
- Bankruptcy and Judgments: What are the State Exemptions for Tennessee?
- Judgments and Bankruptcy: What are The State Exemptions for Alabama?
- Judgments: What are the State Exemptions for Oregon?
