PENNSYLVANIA BANKRUPTCY LAW

Pennsylvania Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

Pennsylvania Bankruptcy Statistics: In 2009, in the state of Pennsylvania 36,923 bankruptcies were filed. Business Bankruptcies accounted for 4% of the total or 1,480 bankruptcies.

Pennsylvania State Bankruptcy Exemptions:

Homestead

There is no homestead exemption in Pennsylvania. However, Pennsylvania recognizes tenancy by the entirety ownership for married couples; thus a home owned by a married couple as a tenancy by the entirety may be exempt against the debts of only one of the spouses.

Personal Property

A few items are exempt when filing bankruptcy in Pennsylvania.

1. Bibles and school books
2. Clothing
3. Military uniforms and accoutrements
4. Sawing machines

Insurance

1. Life insurance or annuity payments
   • Payments on the contact not exceeding $100 per month
   • Proceeds from the policy, if the policy contains a valid clause prohibiting payment to beneficiaries’ creditors.
   • Cash value or proceeds, if the beneficiary is the insured’s child, spouse, or dependent.
2. Accident or disability benefits
3. Group life policy or proceeds
4. Fraternal benefit society benefits

Pensions

The following individuals’ pensions and their survivors’ benefits are exempt when filing bankruptcy in Pennsylvania.

1. City employees
2. County employees
3. State employees
4. Municipal employees
5. Police officers
6. Public school employees

Private retirement benefits are exempt when they meet the following conditions. The pension accounts are tax deferred, contain a valid clause prohibiting payment to creditors and the deposit is limited to $15,000 a year.

Tools of the trade

A seamstress’ sawing machine is exempt when filing bankruptcy in Pennsylvania.

Wages

They wage exemptions in Pennsylvania are unlimited. The following types of wages are exempt.

1. Earned but unpaid wages
2. Prison inmates’ wages
3. Wages of victims of abuse

Wildcard

The debtor can take a $300 exemption on any property; personal, real or cash.

Miscellaneous

Property of a business where the debtor is a partner is exempt when filing bankruptcy in Pennsylvania

Federal Bankruptcy Exemptions: Yes

Pennsylvania Bankruptcy Courts:

Pennsylvania Eastern District Court

Pennsylvania Middle District Court

Pennsylvania Western District Court