Pennsylvania HB 1631: An Act amending Title 42 (Judiciary and Judicial Procedure) of the Pennsylvania Consolidated Statutes, in judgments and other liens, providing for bankruptcy exemption.

Bill Text

PRINTER'S NO. 1981
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1631
Session of
2025
INTRODUCED BY HOWARD, HILL-EVANS, MAYES, OTTEN, SANCHEZ AND
D. WILLIAMS, JUNE 20, 2025
REFERRED TO COMMITTEE ON COMMERCE, JUNE 23, 2025
AN ACT
Amending Title 42 (Judiciary and Judicial Procedure) of the
Pennsylvania Consolidated Statutes, in judgments and other
liens, providing for bankruptcy exemption.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 42 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
§ 8105. Bankruptcy exemption.
In any bankruptcy proceeding filed in this Commonwealth under
11 U.S.C. (relating to bankruptcy), an individual or married
couple filing jointly may choose the Federal exemptions
contained in 11 U.S.C. § 522(d) (relating to exemptions) or the
following:
(1) Up to $650,000 in aggregate equity of a primary
residence. The amount under this paragraph shall be adjusted
to reflect any upward changes in the Consumer Price Index for
All Urban Consumers (CPI-U) for the Pennsylvania, New Jersey,
Delaware and Maryland area as of the effective date of this
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paragraph.
(2) Personal property not exempted under paragraph (3),
a total value of $50,000 for individual filers and $100,000
for married couples filing jointly, plus the aggregate of any
prior year's expenses for nondischargeable debts, utilities
bills and phone and Internet service payments. The base
amounts under this paragraph shall be adjusted to reflect any
upward changes in the Consumer Price Index for All Urban
Consumers (CPI-U) for the Pennsylvania, New Jersey, Delaware
and Maryland area as of the effective date of this paragraph.
(3) The following are exempt in total:
(i) All property exempt from judgment under section
8124 (relating to exemption of particular property).
(ii) Health aids, including wheelchairs, canes,
hearing aids or other medically necessary items.
(iii) Current wages.
(iv) Alimony, support and maintenance subject to 23
Pa.C.S. (relating to domestic relations).
(v) Up to two burial plots, as defined in 9 Pa.C.S.
§ 101 (relating to definitions).
(vi) Social Security benefits.
(vii) College savings plans.
(viii) Unemployment benefits arising under the act
of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1),
known as the Unemployment Compensation Law.
(ix) Workers' compensation arising under the act of
June 2, 1915 (P.L.736, No.338), known as the Workers'
Compensation Act.
(x) Medical assistance, as defined in section 1401
of the act of June 13, 1967 (P.L.31, No.21), known as the
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Human Services Code.
(xi) All benefits arising under a Federal program,
including, but not limited to, Temporary Assistance for
Needy Families, the Supplemental Nutrition Assistance
Program, Women Infants and Children, Children's Health
Insurance Program, Section 8 housing vouchers, Low-Income
Home Energy Assistance Program, Weatherization Assistance
Program and Federal Student Aid, including grants, loans
and work-study programs.
(xii) Tax refunds.
(xiii) Court-ordered restitution payments.
(xiv) Benefits arising under the act of June 24,
1976 (P.L.424, No.101), referred to as the Emergency and
Law Enforcement Personnel Death Benefits Act.
(xv) Benefits arising under 38 U.S.C. (relating to
veterans' benefits), or excluded by 51 Pa.C.S. Ch. 99
(relating to veterans' benefit payment exclusion).
(xvi) Awards for the loss of future earnings,
recovery for wrongful deaths or compensation received as
the result of a civil remedy.
Section 2. This act shall take effect in 60 days.
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