Bankruptcy exemptions are rules that exempt certain types and amounts of property from being sold or used to satisfy the claims of debtors in your bankruptcy case. Each state has a set of bankruptcy exemptions that you can use to protect your property while going through bankruptcy.

Federal law also provides a set of bankruptcy exemptions. Your state’s law will determine whether you can choose the federal bankruptcy exemptions, or if you must use your state’s bankruptcy exemptions. But if your state’s law allows you to choose between the two sets of bankruptcy exemptions, you must choose one or the other, and cannot choose exemptions from both your state and the federal exemptions.

In Pennsylvania, bankruptcy exemptions play a crucial role in determining which assets you can protect from creditors when you file for bankruptcy. Pennsylvania law allows debtors to choose between the state's bankruptcy exemptions and the federal bankruptcy exemptions, but you cannot mix and match between the two systems; you must select one set of exemptions to apply to your case. The Pennsylvania exemptions include protection for retirement accounts, personal property, insurance, public benefits, tools of trade, and a wildcard exemption, among others. The federal exemptions, which may be more generous in some categories, cover similar types of property but with different exemption limits. It's important to compare both sets of exemptions with an attorney to determine which one best protects your assets in a bankruptcy proceeding.