We are in the midst of great economic uncertainty. As such, it behooves us to provide our fellow Pennsylvanians protections to ensure they do not lose everything.
 
While the federal government seems focused on tax breaks and loopholes for billionaires, many states have chosen to further protect the average working citizen and go above and beyond the minimal federal protections on the seizure and sale of property to pay for unpaid debts allowed under the US Bankruptcy Code, Pennsylvania has not. While other states have adopted their own exemptions for state residents seeking bankruptcy protection, Pennsylvania lags behind. Pennsylvania affords less protection from destitution than, say, Texas or Florida.
 
This is unacceptable. Therefore, we want to enact a Pennsylvania-specific list of exemptions that both avoids the excesses seen in some states (For example, $10 million mansions being shielded from creditors), while providing Pennsylvanians with security in reasonably priced homes, as well as a reasonable exemption for personal property.
 
This will prevent some of the worst cascading effects of economic downturn, such as the reliance on public assistance programs through an increase in need.
 
Previously, we introduced HB 1631 to address this. Following substantial stakeholder feedback, we have made certain revisions to ensure that a person’s primary vehicle receives reasonable protection and to further protect dependents of the bankruptcy filer. Co-sponsors to HB 1631 were: HILL-EVANS, MAYES, OTTEN, SANCHEZ, AND WILLIAMS. Please join us in advancing this important legislation.