Pennsylvania Bankruptcy Exemptions

Unlike many states, Pennsylvania does not offer a broad set of state bankruptcy exemptions covering all assets. Instead, filers often use the federal bankruptcy exemptions . However, Pennsylvania does provide protection for certain types of property — plus any federal nonbankruptcy exemptions still apply. This page provides an overview of partial Pennsylvania protections, plus the federal exemption amounts (effective April 1, 2022 – March 31, 2025).

Caution: The Pennsylvania amounts below may be outdated. Always verify with a licensed bankruptcy attorney or official Pennsylvania statutes for the latest details.

Homestead Exemption

State: None (Pennsylvania does not provide a general homestead exemption). However, property held as tenancy by the entirety might protect property against debts owed by only one spouse.

Federal: Up to \$27,900 (single debtor) or \$55,800 (married joint owners) if choosing the federal system. (11 U.S.C. § 522(d)(1))

Consult a local bankruptcy attorney about tenancy by the entirety protection if you’re married and jointly own property.

Motor Vehicle Exemption

State: None.

Federal: \$4,450 equity in one vehicle. (11 U.S.C. § 522(d)(2))

Tools of Trade Exemption

State: Only a sewing machine is explicitly mentioned under 42 Pa.C.S. § 8124(a)(3).

Federal: Up to \$2,800 for implements, professional books, or tools of the trade. (11 U.S.C. § 522(d)(6))

Wildcard Exemption

State: Pennsylvania provides a \$300 wildcard for any property (including cash, real property, and securities). (42 Pa.C.S. § 8123)

Federal: \$1,475 plus any unused homestead up to \$13,950 (11 U.S.C. § 522(d)(5)).

Personal Property

State Exemptions: 42 Pa.C.S. § 8124 mentions clothing, bibles, school books, military uniforms/accoutrements. No specific dollar amounts (like a homestead or vehicle) for most categories.

Federal Exemptions (11 U.S.C. §§ 522(d)(3)-(6), (9)-(11)) :

  • Animals, crops, clothing, appliances, musical instruments up to \$700 per item / \$14,875 total
  • Jewelry up to \$1,875
  • Health aids (100% exempt)
  • Lost earnings payments (100% exempt)
  • Personal injury recoveries up to \$27,900 (excl. pain & suffering, pecuniary loss)
  • Wrongful death recoveries (if dependent on deceased)
  • Alimony & child support needed for support

Retirement Accounts

State: Pensions for city, municipal employees, police officers, public school employees, and state employees. (42 Pa.C.S. § 8124(b)). Private retirement benefits might be covered. Always confirm plan type.

Federal**: Tax-exempt retirement accounts (401(k), 403(b), etc.) fully exempt. IRAs & Roth IRAs up to \$1,512,350 per person, subject to periodic adjustment. (11 U.S.C. §§ 522(b)(3)(C), (n))

*You can still claim these federal retirement exemptions even if you use Pennsylvania’s partial state exemptions for other property.*

Other Pennsylvania Exemptions

Below are some additional Pennsylvania-specific exemptions or references:

  • Public/Charitable Benefits: Workers’ comp (42-8124), unemployment comp (43-863?), veterans’ benefits (51-20012, etc.).
  • Insurance Exemptions: Accident/disability, life insurance, group insurance, annuity proceeds, fraternal benefits, no-fault auto proceeds. (42-8124)
  • Wages on deposit: 42-8127 might provide partial coverage for wages in bank.
  • College tuition accounts: 24-6901.309.2 references certain educational savings.

Residency Requirements

You must have resided in Pennsylvania for at least 730 days (2 years) before filing to use these partial state exemptions. Otherwise, you may need to use your prior state’s exemptions (11 U.S.C. § 522(b)(3)(A)).

A federal homestead “cap” of \$189,050 (as of April 1, 2022) may apply if you haven’t owned your home for 40 months—though Pennsylvania does not have a standard homestead anyway. If you use the federal homestead , you’d get \$27,900 (or \$55,800 if joint) instead.

What Happens to Nonexempt Property?

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 asset value over 3-5 years.

Disclaimer

This content is provided for general informational purposes only and does not constitute legal advice. Pennsylvania’s partial state exemptions can be tricky, and many filers opt for federal bankruptcy exemptions. Laws, amounts, and interpretations can change—always confirm with a licensed Pennsylvania attorney or the official Pennsylvania Consolidated Statutes for up-to-date details.

Consult a Pennsylvania Bankruptcy Attorney