What money in my bank account is protected from creditors in Pennsylvania?
1. Federal Floor. Social Security, SSI, SSDI, VA, federal pensions, and OPM annuities are absolutely protected under 42 U.S.C. § 407 and 38 U.S.C. § 5301. The 31 C.F.R. Part 212 two-month rule automatically protects directly deposited federal benefits.
2. State Wild-Card / Cash Exemption. 42 Pa. C.S. § 8123 provides a modest $300 general exemption in any property, including bank accounts. There is no broader cash exemption — Pennsylvania relies heavily on entireties and source-specific shields.
3. Other Source-Specific Exemptions. 42 Pa. C.S. § 8124 exempts retirement income, life insurance, accident/disability insurance, workers' compensation (77 P.S. § 621), unemployment (43 P.S. § 863), public assistance (62 P.S. § 432.7), Crime Victim Comp, and 100% of wages until paid (§ 8127, except for support, taxes, student loans, four-family-dwelling rent).
4. Retirement Accounts. 42 Pa. C.S. § 8124(b)(1) provides broad protection for IRAs, Roth IRAs, 401(k)s, 403(b)s, and ERISA plans, with limitations on contributions within one year of judgment exceeding $15,000.
5. Joint Accounts. Pennsylvania strongly recognizes tenancy by the entireties. A joint account of spouses is presumed entireties property and is exempt from creditors of one spouse alone (Constitution Bank v. Olson).
6. Claim of Exemption Process. Pa. R. Civ. P. 3142 requires debtor to file objections (claim of exemption) within 30 days of service of writ; hearing scheduled.
7. Burden of Proof. Debtor must show source of exempt funds with deposit history.
8. Penalty for Wrongful Garnishment. Court may impose costs and reasonable attorney fees for bad-faith garnishment.
9. Bankruptcy Interplay. Pennsylvania allows debtors to choose state or federal exemptions; Chapter 7 reaches non-exempt cash; Chapter 13 retains it.
This is legal information, not legal advice.
- Creditor seeks to pierce a marital entireties account
- Wages were garnished outside the narrow § 8127 exceptions
- Large IRA contributions within 12 months of judgment are challenged
- 42 Pa. C.S. § 8123
- 42 Pa. C.S. § 8124
- 42 Pa. C.S. § 8127
- 42 U.S.C. § 407
- 31 C.F.R. Part 212
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.