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What are bankruptcy exemptions in Pennsylvania?

Federal & State Law Editorial TeamLast reviewed: 2026-05-02

Pennsylvania is unique because state exemptions are so weak that federal exemptions are almost always better.

1. Choice Between State and Federal — 11 U.S.C. § 522(b)(2)

Pennsylvania did not opt out. Debtors may choose either:

  • Pennsylvania state exemptions (42 Pa. C.S. §§ 8123-8124), OR
  • Federal exemptions (11 U.S.C. § 522(d)).

    • 95%+ of PA debtors choose federal because of the absence of a state homestead.

    2. Pennsylvania State Exemptions — 42 Pa. C.S. § 8124

  • NO homestead exemption — Pennsylvania has no general homestead protection.
  • Wildcard — § 8123(a): only $300 of any property.
  • Bibles, schoolbooks, sewing machines — § 8124(a): unlimited.
  • Uniforms and equipment — § 8124(a)(4): unlimited.
  • Tangible personal property at international expositions: unlimited.
  • Wages — § 8127: generally exempt from attachment except for support, taxes, and a few categories.
  • Public assistance, veterans' benefits, workers' comp: fully exempt.

    • 3. Federal Exemptions — 11 U.S.C. § 522(d) (2025 figures)

  • Homestead — § 522(d)(1): $27,900 ($55,800 joint).
  • Motor vehicle — § 522(d)(2): $4,450.
  • Household goods/furniture — § 522(d)(3): $700 per item, $14,875 aggregate.
  • Jewelry — § 522(d)(4): $1,875.
  • Wildcard — § 522(d)(5): $1,475 + up to $13,950 of unused homestead = up to $15,425. Critical for renters and low-equity homeowners.
  • Tools of trade — § 522(d)(6): $2,800.
  • Life insurance unmatured — § 522(d)(7), (8): unlimited contract; $14,875 in cash value.
  • Personal injury — § 522(d)(11)(D): $27,900.
  • Retirement accounts — § 522(d)(12): ERISA plans and most IRAs/Roth IRAs fully exempt up to $1,512,350 (2025).

    • 4. Wages

  • State: generally exempt from non-tax/non-support garnishment (§ 8127).
  • Federal CCPA: caps garnishment at 25% of disposable earnings or amount over 30x minimum wage.

    • 5. Tenancy by the Entirety

    Pennsylvania recognizes — property held jointly by spouses with right of survivorship is exempt from individual creditors. Major asset protection tool for married debtors filing individually.

    6. Retirement — 42 Pa. C.S. § 8124(b)

    PA also exempts retirement accounts under state law.

    7. Domicile Requirement

    730-day rule under 11 U.S.C. § 522(b)(3) applies.

    8. Joint Filers

    Both spouses must use the same system (state or federal) — cannot mix.

    This is legal information, not legal advice.

    When to Talk to a Lawyer
    • You and your spouse hold property as tenants by the entirety and want to maximize asset protection
    • You need to evaluate whether state or federal exemptions are better for your situation
    • Your retirement account exceeds the $1,512,350 federal cap
    Related Statutes & Laws
    • 42 Pa. C.S. § 8123
    • 42 Pa. C.S. § 8124
    • 42 Pa. C.S. § 8127
    • 11 U.S.C. § 522(d)

    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.