Bill > HB1631

This bill amends Pennsylvania's bankruptcy law to provide individuals and married couples filing for bankruptcy with expanded exemption options. Specifically, the bill allows filers to choose between federal bankruptcy exemptions and new state-specific exemptions. These state exemptions include up to $650,000 in primary residence equity (which will be adjusted for inflation), personal property exemptions of $50,000 for individuals and $100,000 for married couples, and a comprehensive list of fully exempt items. The fully exempt categories include health aids, current wages, alimony, burial plots, Social Security benefits, college savings plans, various government benefits (such as unemployment, workers' compensation, medical assistance, and federal aid programs), tax refunds, court-ordered restitution payments, veterans' benefits, and awards for loss of future earnings or civil remedies. The bill aims to provide more robust protections for individuals going through bankruptcy, allowing them to retain essential assets and support mechanisms. The new provisions will take effect 60 days after the bill's passage, giving individuals and legal practitioners time to understand and implement the new exemption rules.

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https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1631