If you have been struggling with paying your bills but have been trying to avoid filing for bankruptcy because you are afraid of losing your possessions, then familiarizing yourself with Pennsylvania’s bankruptcy exemptions might ease some of your concerns. Exemptions are specific types of property that you are able to keep or protect when filing for Chapter 7 bankruptcy, as well as in some areas of a Chapter 13 bankruptcy. Many people believe that a bankruptcy will leave them destitute, with little left but the clothes on their backs. The truth is that if you are working with the support of a knowledgeable and experienced bankruptcy attorney, you may be able to walk away from your debts without also having to sacrifice everything you have to your creditors. The Pennsylvania bankruptcy lawyers at Reinherz Law can show you how.

There are certain exemptions that are made available by federal bankruptcy law, and others that are specifically available in the state of Pennsylvania. These exemptions can allow you to protect items such as your car, your home, and a certain amount of cash when you file for personal bankruptcy, and similarly, when you file under Chapter 13 the exemptions can shield you from having to provide too large a percentage of your income to those you owe. When you file for bankruptcy in Pennsylvania you will be required to choose between the federal and state-offered bankruptcy exemptions. If you choose the state options, you will still have the ability to take advantage of other non-bankruptcy exemptions that the federal government offers, including those for military personnel and federal employees. The attorneys at Reinherz Law will explain all of these options, and can help you to determine which are most advantageous for you.

The list of Pennsylvania bankruptcy exemptions is long, and includes many things that may not be applicable to you and your situation, but there are certain exemptions that most bankruptcy applicants do take advantage of. Some of the most commonly-used exemptions include:

• The equity in your home if you own it as a tenancy by the entirety. You can also keep your equity if you choose the federal bankruptcy exemption.
• Personal property, including your clothing, sewing machines and uniforms, bibles and school books
• You may keep 75% of our wages
• Pensions are exempt for city, state and county employees, public school employees and police officers and municipal employees.
• If you are the beneficiary of an insurance policy, you are able to keep the proceeds (or up to $100 per month of annuity payments) if the policy specifically prohibits proceeds being paid to a creditor.
• Workers compensation and unemployment compensation are both exempt
• Veterans benefits and crime victims’ compensation are both exempt
• Business partnership property is exempt

In addition to these Pennsylvania bankruptcy exemption items, there are others that may be available based upon your particular situation. The attorneys at Reinherz Law can provide you with a more in-depth explanation of how these exemptions apply to you and ensure that you get the maximum benefit of filing for bankruptcy.