When you file for bankruptcy, this does not mean you will have to lose all your possessions to creditors. There are certain exempt properties that you may keep so you can have a fresh start once the process is finished. There are a variety of federal bankruptcy exemptions, as well as state bankruptcy exemptions that are available. In general, you will need to choose between federal or state exemptions, as you are not allowed to have both.
With federal bankruptcy exemptions, you may keep possession of your:
- Primary vehicle
- Place of residence
- Federal and state benefits
- Retirement funds and pensions
- Some personal property items
In addition, you get a “wild card” that you may use to request possession of property up to a specific dollar amount. There are also state bankruptcy exemptions in Pennsylvania that you may choose instead of federal exemptions. You will need to discuss your situation with one of our knowledgeable Harrisburg bankruptcy attorneys to determine whether federal or state bankruptcy exemptions will provide the greatest benefit to your situation.
Pennsylvania Bankruptcy Exemptions
In Pennsylvania, you may be able to maintain possession of your:
- Personal property
- Certain insurance
- Public benefits
- Business partnership property
You will also be able to use a “wild card” that allows you to keep property up to $300. Married couples filing together can double their exemptions.
If you choose state exemptions, you may also be able to add on federal non-bankruptcy exemptions, such as death and disability benefits, survivor’s benefits, retirement benefits, and more. Personal property may refer to clothing, books, uniforms, accouterments, household goods, jewelry, animals, appliances, and other items.
Call Dethlefs Pykosh & Murphy Today at (717) 559-0271
If you are facing bankruptcy, it is important to contact Dethlefs Pykosh & Murphy as soon as possible. We have years of experience representing clients in Pennsylvania, and stay up to date on federal and state bankruptcy laws. Our Harrisburg bankruptcy lawyers will determine what exemptions you may be entitled to and fight on your behalf as you seek a fresh start.