When your debt mounts beyond your ability to pay and you are constantly being contacted by bill collectors and collection agencies, it may be time to consider filing for Chapter 7 bankruptcy. Though this process offers a number of benefits, many people hesitate before taking this step because they fear the loss of their personal property. It is important to work with an experienced bankruptcy attorney who is well versed in the various bankruptcy laws, and particularly with both federal and Pennsylvania bankruptcy exemptions. Understanding these exemptions, and the difference between which ones will work best for your particular situation, is essential to your ability to retain control of your real estate and personal property. For legal counsel that can provide you with valuable information on Pennsylvania bankruptcy exemptions and what you need to know about them, contact the experienced lawyers at Erik B. Jensen Attorneys at Law.
When presented with a filing for Chapter 7 bankruptcy, the bankruptcy court will look at each item of property and classify it in order to determine whether it is exempt or not. An individual filing chan choose between the established federal bankruptcy exemptions and the Pennsylvania bankruptcy exemptions. As experienced bankruptcy lawyers, Erik B. Jensen Attorneys at Law are in a unique position to provide you with counsel as to which option is most beneficial for your specific situation. To get a sense of the difference between the two, consider the following.
Common federal bankruptcy exemptions include:
- $550 per household good, up to $11,525
- Up to $21,625 in your homestead; $10,825 of any unused portion can be applied to other personal property
- Up to $3,450 for your vehicle
- Up to $1,450 for your jewelry
- Up to $10,000 in cash
- Any tools required in order for you to work within your occupation
The state of Pennsylvania’s bankruptcy exemptions include:
- Clothes and books
- Insurance policy proceeds (under certain circumstances)
- Tax exempt retirement accounts up to $1,000,095 per person
- Social security benefits
- Workers’ compensation benefits
- Business partnership property
- Veteran’s benefits
- Jointly owned property
As you can see, the differences between the two are significant, and though the federal exemptions may be more beneficial to some bankruptcy applicants, the Pennsylvania bankruptcy exemptions may be more suitable for others. In order to make the decision as to which is most appropriate and beneficial, and allows you to retain the things that are most important to you, it is important that you work with an attorney who will ask all the right questions, carefully analyze your assets, and work with you to find the solution that is the best fit. At Erik B. Jensen Attorneys at Law, we are dedicated to helping you put your financial house back in order and helping you hold on to what is most important. Call us today and we’ll get to work immediately.
Learn more about Pennsylvania Bankruptcy Exemptions HERE.
