Pennsylvania Bankruptcy Attorneys & Exemptions

Legal requirements under the new disposable income test restrict the availability of Pennsylvania bankruptcy exemptions in Chapter 7 cases. As a question of initial qualification, a debtor's income must be below the latest Pennsylvania median income level reported for the current year by the U.S. Census Bureau. If qualified under this measure, and an assortment of additional formulaic means testing requirements, state residents may claim either the exempt property delineated by the Pennsylvania Property Code, or alternatively, the federal exemption list provided under Sec. 522 of Title 11 of the United States Code. Few Pennsylvania bankruptcy attorneys have extensive experience claiming new law benefits, yet, but these measures will surely create an impressive appellate trail within a few years.

Many homeowners prefer the federal option because of the homestead exemption. Oddly, PA is one of only two states that does not provide a state homestead exemption in Chapter 7 cases. Nevertheless, when real estate ownership or leases are not at issue, the state exemptions may provide preferable value retained. Pennsylvania bankruptcy attorneys are the most qualified experts nationwide for evaluating state property exemption potential.

See also: Pennsylvania Homestead Exemption.