Many people with debt problems are afraid to file bankruptcy because they think they will lose everything they own. In reality, most people who file don't lose anything due to bankruptcy exemptions.
At the law firm of Gross & Patterson, LLC, in Pittsburgh, our lawyers are here to help protect your assets when you file bankruptcy. We offer a free initial consultation to evaluate your assets and determine which assets are protected.
What Is Exempt Property in Bankruptcy?
Exempt property is property you are allowed to keep when you file bankruptcy. When an asset is exempt, a bankruptcy trustee cannot take the exempt property to pay your debts.
Examples of federal bankruptcy exemptions include:
- $21,625 in equity in your homestead ($43,250 if you file jointly and jointly own the home)
- $3,450 in vehicles
- $11,525 in household goods
- $1,450 in jewelry
- $1,450 wild card exemption for any assets
- $2,175 for tools you need to work
- $11,525 in life insurance
- $1,171,650 in an IRA
If you don't use the homestead exemption for your home, you can use half of that amount to protect other personal assets. If you have an asset you can't protect, you may be able to keep it by paying the trustee the liquidation value, which is much less than the retail value of the item.
It is important to disclose all of your assets or you could face charges of bankruptcy fraud.
For More Information About Pennsylvania Personal Property Exemptions
To schedule a free initial consultation with our Pittsburgh bankruptcy attorneys, call 412-567-4732 or fill out the contact form on this website.
