Understanding Bankruptcy Exemptions
Bankruptcy exemptions allow certain personal property to be excluded from liquidation used to pay your creditors in Chapter 7 bankruptcy. Taking advantage of these exemptions provides you with the foundation to start over. Generally speaking, the court will allow you to keep a fair amount of real estate and personal property, usually most of what you own.
At Bello, Reilley, McGrory & DiPippo Attorneys At Law, we have several years of experience working within the bankruptcy process, which has given us detailed insight into how the court will classify property for purposes of exemption. With law offices in King of Prussia, we serve clients in Montgomery County and throughout the Philadelphia metro area.
Protecting Your Assets
During the course of bankruptcy proceedings, you have the opportunity to use either the federal exemptions or the Pennsylvania exemptions. It is important that you have the assistance of skilled and experienced bankruptcy lawyers to determine the bankruptcy exemptions that would be most beneficial given your personal circumstances. Some examples of common federal bankruptcy exemptions are:
- Up to $21,625 in your homestead; $10,825 of any unused portion can be applied towards other personal property
- $550 per household good up to $11,525
- Your vehicle, up to $3,450
- Tools required to practice your profession
- Up to $1,450 in jewelry
- Up to $10,000 in cash
Pennsylvania exemptions allow you to keep:
- Tax exempt retirement accounts including an IRA and 401(k) up to $1,000,095 per person
- Clothes and books
- Insurance policy proceeds, given certain requirements are met
- Social security benefits
- Business partnership property
- Workers’ compensation benefits
- Veterans’ benefits
Although Pennsylvania does not offer a homestead exemption, jointly owned property is exempt. Choosing the Pennsylvania exemptions may be the difference between retaining and surrendering your home. Our bankruptcy attorneys will guide you through this important decision.
Experienced Bankruptcy Lawyers Protecting Your Rights
The interrelation of state and federal laws can be complicated. To speak with one of our experienced Philadelphia, Pennsylvania, asset protection lawyers, please contact us by email or call 610-992-1300 to schedule a free consultation.
