Pennsylvania does not offer a broad, dollar-based state homestead or motor vehicle exemption. Because of this, many filers choose the federal bankruptcy exemptions, which are updated every three years and were most recently adjusted on April 1, 2025. Pennsylvania still provides important protections for specific categories of property—especially retirement accounts and certain insurance and benefit payments. If you are married, tenancy by the entirety ownership can also provide powerful protection against creditors of only one spouse. This page summarizes Pennsylvania’s partial state protections and the current federal exemption amounts so you can discuss the best strategy with your attorney.
Caution: Statutes change and courts interpret them differently. Always verify details with a licensed Pennsylvania bankruptcy attorney and the current statutes.
State: None. Pennsylvania does not provide a general dollar-based homestead exemption. However, real estate (and even personal property) titled by married spouses as tenants by the entirety may be shielded from the individual debts of just one spouse. This protection generally does not apply against joint creditors. Speak with counsel about how entireties ownership interacts with bankruptcy planning.
Federal: Up to $31,575 in equity per debtor in a residence used as a home. Married joint filers who both own the property can typically double this to $63,150. (11 U.S.C. § 522(d)(1)) Amounts apply to cases filed on or after April 1, 2025.
Note: The federal “1215-day” caps in 11 U.S.C. § 522(p) and (q) limit certain state-law homestead claims acquired in the 40 months before filing. Pennsylvania has no state homestead, but this cap can still matter if you rely on state-law homestead or similar protections in other contexts. Ask your attorney which regime you are electing.
State: None.
Federal: Up to $5,025 in equity in one vehicle. (11 U.S.C. § 522(d)(2))
Practical tip: If your equity is slightly over the limit, you may be able to combine the vehicle exemption with part of the federal wildcard (below) to cover the remainder.
State: Limited—Pennsylvania expressly mentions a sewing machine (when used by seamstresses or private families).
Federal: Up to $3,175 for tools, books, and implements you need for your work. (11 U.S.C. § 522(d)(6))
Many Pennsylvania filers choose the federal exemptions here, especially small business owners, tradespeople, and gig workers who rely on their equipment to generate income.
State: A general monetary exemption of $300 that can be applied to any property (including cash). (42 Pa.C.S. § 8123)
Federal: $1,675 plus any unused homestead up to $15,800; may be applied to almost any property. (11 U.S.C. § 522(d)(5))
Strategy note: The federal wildcard is often the “tie-breaker” when choosing between state and federal exemption systems in Pennsylvania, because it can be allocated to cover small amounts of equity across multiple assets (e.g., a car, bank account, or hobby equipment).
State: Clothing, bibles, school books, uniforms, and certain other specified items are exempt. Pennsylvania does not set broad dollar caps for household goods in its state list.
Federal (selected categories):
Public benefits (for example, workers’ compensation, unemployment, certain insurance proceeds) are also protected under Pennsylvania statute, and many federal benefits are separately protected by federal law. Check your specific benefit type with counsel.
State: Pennsylvania specifically exempts a wide range of retirement benefits, including public pensions, employer-provided pensions that are non-assignable, self-employed plans, and tax-qualified accounts such as 401(k), 403(b), and IRAs, with certain limits on recent contributions.
Federal: Most tax-qualified retirement accounts (401(k), 403(b), etc.) are fully exempt. Traditional and Roth IRAs are protected up to $1,711,975 per person, with rollovers from employer plans typically enjoying separate protection. (11 U.S.C. § 522(n) and § 522(d)(12))
Practical tip: Because both state and federal law strongly protect retirement funds, it is rarely necessary (or wise) to liquidate retirement to pay unsecured debts before exploring bankruptcy.
While in the employer’s hands: Wages are largely exempt from garnishment in Pennsylvania, with limited exceptions (such as support orders, certain rent judgments, and specified debts).
After deposit: Ordinary wages deposited into a bank account generally lose wage-specific protection, though the $300 general monetary exemption still applies and certain exempt direct-deposited funds (like Social Security or unemployment) receive special protection under court rules. If your paycheck and protected benefits share the same account, talk to your attorney about documentation and tracing.
To use Pennsylvania’s state exemptions, you must have lived in Pennsylvania for at least 730 days (2 years)before filing. If not, you generally use the prior state’s exemptions or the federal system, depending on how the federal domiciliary rules apply in your situation.
In chapter 7, the trustee can sell nonexempt assets to pay unsecured creditors. In chapter 13, you keep your property but must pay creditors at least the nonexempt value over a three-to-five-year plan. Choosing the most favorable exemption set (state vs. federal) can dramatically change your case outcome.
Does Pennsylvania have a homestead exemption?
No. Pennsylvania does not offer a general dollar-based homestead exemption. Most homeowners in bankruptcy rely on the federal homestead of $31,575 per debtor (double for a married couple who both own the home) or, if applicable, tenancy by the entirety protection against creditors of just one spouse.
How are retirement accounts treated?
Both systems are very protective. State law exempts a wide range of retirement plans, and federal law fully protects most tax-qualified accounts. IRAs get federal protection up to $1,711,975 per person, with employer-plan rollovers typically protected separately. Recent large contributions may face limits—ask your attorney to review timelines and documentation.
What if my car has a little more equity than the limit?
The federal motor vehicle exemption covers $5,025 in equity. If you need a bit more coverage, you can often stack a portion of the federal wildcard to protect the excess. If you’re using Pennsylvania’s state exemptions, consider whether switching to the federal set makes more sense for your vehicle.
Can I use the wildcard to protect cash or a bank account?
Yes. The federal wildcard lets you protect $1,675 plus up to $15,800 of unused homestead. Pennsylvania’s state wildcard is only $300. Many filers choose federal exemptions for this flexibility alone.
Will the trustee take my personal injury settlement?
The federal exemption protects up to $31,575 of a personal bodily injury recovery (excluding pain and suffering or economic loss). Wrongful death and loss-of-earnings payments are protected to the extent reasonably necessary for support. Your attorney can help categorize and document the components of any settlement or award.
What if I moved to Pennsylvania recently?
If you haven’t lived in Pennsylvania for at least 730 days, you might need to use your prior state’s exemptions or the federal system. The choice can be outcome-determinative—get advice before filing.
This content is for general informational purposes only and is not legal advice. Exemptions are technical and fact-specific. Laws and amounts change; always confirm with a licensed Pennsylvania attorney and the current statutes.