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Puerto Rico Bankruptcy Exemptions

(State or Federal Exemptions are Allowed)

Click here to find out when exemptions were last updated

Please note the New Bankruptcy Laws taking effect on April 20, 2005 and on October 17, 2005.


The Bankruptcy Courts, Addresses and Other Information are found at this link.

Click Here for Federal Exemptions

Puerto Rico Exemptions

Bankruptcy Exemptions or Assets that can be kept in a Bankruptcy

In general, a debtor may claim exemption of his homestead and certain personal property from attachment and execution of a judgment, or in a bankruptcy proceeding.

  • A judgment debtor is generally entitled to a homestead exemption of a property not exceeding the sum of $15,000.00 in value, consisting of a parcel of land and the buildings thereon, in any farm, plantation or parcel of land owned, or lawfully possessed and occupied by him as his family residence. (T.31, s1851.)

In addition, a judgment debtor may claim exemption of personal property which may include:

  • household furniture and furnishings up to a value of not exceeding $200;
  • wearing apparel, hanging pictures, oil paintings and drawings drawn or painted by his family members, family portraits,
  • farming utensils or implements of husbandry of a farmer not exceeding in value the sum of $200;
  • certain number of domestic animals;
  • water right not to exceed the amount of water used for the irrigation of lands actually cultivated by him;
  • seed, grain or vegetables reserved on hand for the purpose of planting or sowing at any time within the ensuing 6 months but not exceeding in value the sum of $200;
  • tools or implements of a mechanic or artisan necessary to carry on his trade not exceeding in value the sum of $300;
  • a motor vehicle which is considered the working tool of the judgment debtor but not related to a debt incurred for the acquisition of the vehicle or incurred for the improvement or repair thereof, and up to a maximum value of $6,000 if the debt is related to civil liability for damages caused to a third party by the said motor vehicle;
  • the cabin or dwelling of a miner not exceeding in value the sum of $200;
  • life insurance proceeds on the life of the debtor;
  • all arms, uniforms and accouterments required by law to be kept by the debtor;
  • one gun;
  • common iceboxes designed and commercially known for home use;
  • home-use kitchens; wash machines for home use whose cash price does not exceed $200;
  • radio receiving sets with a value not exceeding the sum of $100;
  • Share in a homestead association, $500;
  • television set for home use with a value not exceeding the sum of $250.


 

New Bankruptcy Law taking effect on April 20, 2005:

Homesteads:

  • The exemption for a homestead is limited to $125,000 if the property was acquired within the previous 1215 day (3.3 years). The cap is not applicable to any interest transferred from a debtor's previous principal residence (which was acquired prior to the beginning of such 1215-day period) ;
  • The value of the state homestead exemption is reduced by any addition to the value brought about on account of a disposition of nonexempt property made by the debtor (made with the intent to hinder, delay, or defraud creditors) during the 10 years prior to the bankruptcy filing.
  • An absolute $125,000 homestead cap applies if either:
    • the court determines that the debtor has beeen convicted of a felony demonstrating that the filing of the case was a abuse of the provision of the Bankruptcy Code; or
    • the debtor owes a debt arising from a violation of federal or state securities laws, fiduciary fraud, racketeering, or crimes or intentional torts that caused serious bodily injury or death in the preceeding 5 years. NOTE: This limitation is inapplicable if the homestead property is "reasonably necessary for the support of the debtor and any dependent of the debtor."

New Bankruptcy Law taking effect on October 17, 2005:

The state you use for your exemptions is:

  • The state you lived in for the 730 days (2 years) before filing; or
  • If you did not live in a single state in the previous 2 years you use the state where you lived the majority of the 180 period preceding the 2 year period; or
  • If the preceding renders you ineligible for any exemptions then the debtor is allowed to choose the federal exemptions.

Pension Plans exempt from seizure:

Employee contributions to ERISA qualified retirement plans, deferred compensation plans, tax-deferred annuities, and health insurance plans.

Education Funds exempt from seizure:

Funds placed in an educational retirement account or qualified State tuition programs at least 365 days prior to a bankruptcy filing, within the limits established by the Internal Revenue Code, and for the benefit of a child or grandchild of the debtor, are excluded from the debtor's estate, with a $5,000 limit on funds contributed between one and two years before the filing.

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