HARRISBURG, PA — State lawmakers from Chester County are moving to expand bankruptcy protections for Pennsylvanians, arguing the Commonwealth is leaving working families exposed as economic pressures intensify.
State Reps. Kristine Howard and Chris Pielli, both Democrats, said Monday they are introducing legislation to establish a Pennsylvania-specific set of bankruptcy exemptions, going beyond the minimum protections allowed under the federal bankruptcy code.
Under current law, Pennsylvania residents rely largely on federal exemptions that determine what property can be protected from seizure and sale when debts go unpaid. Many other states have adopted their own exemption lists to better shield residents’ homes and personal property, but Pennsylvania has not taken that step.
The proposed bill would create a state exemption framework designed to protect equity in reasonably priced homes and provide what sponsors describe as fair protections for personal property, reducing the risk that families lose everything during financial hardship.
“While other states have adopted their own exemptions for state residents seeking bankruptcy protection, Pennsylvania lags behind,” Pielli said. He said the legislation is intended to ensure working Pennsylvanians are protected and to limit the most severe consequences of an economic downturn.
Howard said she is concerned that existing safeguards are insufficient at a time when many households are already under strain. She said additional protections could prevent a financial crisis from spiraling into permanent loss for families trying to recover.
The legislation has not yet been assigned a bill number and is awaiting formal introduction in the General Assembly.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.