The question I hear more than any other is simple: “If I file bankruptcy, do I lose everything?” In the overwhelming majority of cases I handle, the answer is no — people keep their house, their car, their furniture, and their retirement. The reason is exemptions: the dollar amounts of property the law lets you protect from creditors. And for Pennsylvania filers, the choice of which exemptions to use is one of the most important decisions in the whole case.
The Federal Exemption Numbers in Effect Right Now
These are the federal exemptions under 11 U.S.C. § 522(d), in effect for cases filed from April 1, 2025 through March 31, 2028. The homestead exemption — the equity you can protect in your home — is $31,575. If you’re married and filing jointly, that doubles to $63,150. You can protect up to $5,025 of equity in a motor vehicle. Household goods and furnishings are covered at $800 per item, up to an aggregate of $16,850. Jewelry is protected up to $2,125. Tools of the trade — the equipment you need to earn a living — up to $3,175. A personal injury recovery can be protected up to $31,575. And retirement accounts are protected up to a cap of $1,711,975 under § 522(n) — a number high enough that it covers the retirement savings of nearly everyone who walks into my office.
There’s also a wildcard: $1,675 that can be applied to anything, plus up to $15,800 of any homestead amount you don’t use. Renters and people with little home equity lean on that wildcard constantly — it’s how a bank account, a tax refund, or a paid-off second car gets protected when the specific categories run out.
Why the Federal List Matters So Much in Pennsylvania
Here’s the part many people don’t know: Pennsylvania has no state homestead exemption. If you relied only on Pennsylvania’s state exemptions, the equity in your home would be exposed. That’s why choosing the federal exemptions is often the single biggest asset-protection decision a Pennsylvania homeowner makes in a bankruptcy case. For a married couple filing jointly, the difference between the two lists can be the difference between keeping your home equity and having a trustee come after it.
The honest caveat: exemptions protect equity, not property outright. If your house is worth far more than you owe and your equity blows past $31,575 — or $63,150 for a couple — that excess is a real problem that has to be planned around, possibly with a Chapter 13 instead of a Chapter 7. And the exemption amounts only do you good if they’re claimed correctly and on time. This is not an area where guessing is safe.
What This Means for You
Before you file, every significant asset you own should be valued and matched against these numbers: the house, the cars, the bank accounts, the expected tax refund, any injury claim you’re pursuing. Done right, most people in Northeastern Pennsylvania protect everything they own and lose nothing but the debt. Done carelessly, the same case can put property at risk that never had to be at risk.
Get Your Property Reviewed Before You File
Call the Law Offices of Jason P. Provinzano, LLC at 570-822-5771 for a free consultation at 16 W. Northampton Street in Wilkes-Barre. Bring a list of what you own and what you owe on it, and we’ll walk your property through the current federal exemption numbers line by line — before you file, while there’s still time to plan.
This article is general information about bankruptcy law, not legal advice about your specific situation.
