Chapter 7 Bankruptcy: What to Know Before You File in Pennsylvania

Pennsylvania Chapter 7 Exemptions

Pennsylvania is an opt-in state: a Pennsylvania debtor may use the state exemption set OR elect the federal Section 522(d) exemptions. Because the Pennsylvania state set is minimal, most Pennsylvania debtors choose the federal set. (Source: Nolo, Pennsylvania Bankruptcy Homestead Exemption.)

State Set vs. Federal Set

Tenancy-by-the-entireties property may also be protected from the individual debts of one spouse. (Source: Nolo, Pennsylvania Bankruptcy Homestead Exemption.)

Which State's Exemptions Apply

Under the 730-day domicile rule (11 U.S.C. Section 522(b)(3)), a debtor must have been domiciled in Pennsylvania for the 730 days before filing to use Pennsylvania's exemptions; otherwise an earlier state's set or the federal exemptions may apply. Because the federal set is available in Pennsylvania regardless, this analysis is most relevant for debtors deciding between state systems.

To compare your six-month income against the Pennsylvania median, use the Chapter 7 means test calculator at /tools/chapter-7-means-test-calculator. To estimate what property the federal set might protect for a Pennsylvania filer, use the bankruptcy exemption estimator at /tools/bankruptcy-exemption-estimator.