WHAT PROPERTY WILL I BE ABLE TO KEEP IF I FILE BANKRUPTCY?
One of the biggest misconceptions about filing bankruptcy is that you will not be able to keep your personal property and possessions. Individuals are often surprised that they can all of their property, including their house, cars and other household goods.
In Pennsylvania, you can elect to use either the state or federal exemptions. In most cases, the federal exemptions will allow you to keep a greater portion, if not all of your property. The state you will use to determine your exemptions is the state you lived in for the 2 years preceding the filing, or the state that you lived in for the majority of the 180 days preceding the 2 year period.
FEDERAL EXEMPTIONS
|
Type of Exemption |
Individual Filer |
Joint Filer |
|
Homestead |
$18,450 |
$36,900 |
|
Household Goods and Furnishings |
$9,850.00 (Each individual item must be valued at $475 or less) |
$19,700 |
|
Motor vehicle |
$2,950 |
$5,900 |
|
Pension, IRA or other ERISA-qualified Retirement Plan, tax deferred annuities |
100% Exempt |
100% exempt |
|
Jewelry |
$1,225 |
$2,450 |
|
Life Insurance Policy with Loan Value |
$9,850 |
$19,700 |
|
Wild Card |
$975 of any property + $9,250 of the unused portion of the homestead |
$1,950 of any property + $18,500 of the unused portion of the homestead |
If the Debtors real property was acquired within the 1215 days preceding the bankruptcy filing, the homestead exemption cannot exceed $125,000.