House Exemption in Pennsylvania For Bankruptcy

  • David M. Offen,
  •   Bankruptcy
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Exempting your House in Bankruptcy in Philadelphia PA

Exempting your House in Bankruptcy

The laws permit you a home or house exemption in Pennsylvania for Bankruptcy. This is used to protect the equity that you have in your home. Under Pennsylvania law you have a choice of two different types of exemptions to choose when filing for bankruptcy. There are federal exemptions and there are the state exemptions. Your personal situation will help determine which exemptions your attorney finds would be best for your case.

The federal exemptions permit you to have $22,500.00 of equity in your home. This exemption is the amount allowed per person. If a home is jointly owned, that means the amount of the exemption is doubled. Therefore if a home is jointly owned by a husband and a wife, the amount of exemption permitted under federal law is $45,000.00

The exemption discussed above applies if a person has chosen the federal exemptions. If a person has chosen the state exemptions – there is only an exemption of $300.00 for any property that the individual owns. The question becomes why on earth would anyone want to choose the state exemptions for the house exemption in Pennsylvania for Bankruptcy to protect a home when there are federal exemptions which appear to be a lot better?

The answer is that generally one should choose the federal exemptions unless the following three items apply;

  1. there is a property that is jointly owned between husband and wife
  2. there is a lot of equity in the property
  3. the debts you are looking to discharge are those of only one individual – either the husband or the wife.

In this case, even if there is equity of $150,000.00 in the property, the total amount of equity in the home can generally be completely protected.

Your other assets are also used in determining which exemptions are best for you in your circumstances

To get the answers to which House exemption in Pennsylvania for Bankruptcy would be best for your circumstances contact Attorney David M. Offen today at (215) 625-9600.

To learn more, please download our free  Chapter 7 Bankruptcy Attorney in Philadelphia here.

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