Puerto Rico Bankruptcy Laws

Federal filing fee for Chapter 7 bankruptcy. Fee waivers available for qualifying low-income filers.

Federal filing fee for Chapter 13 bankruptcy.

You must complete credit counseling from an approved agency within 180 days before filing and a debtor education course before discharge. This is a federal requirement.

Chapter 7 filers must pass a means test comparing their income to Puerto Rico's median income. Puerto Rico's median income is significantly lower than most states, which may make more filers eligible for Chapter 7.

Puerto Rico offers an unlimited homestead exemption for a primary residence that has been properly designated and registered with the Land Registrar via a notarized declaration. This is one of the most generous homestead protections in any U.S. jurisdiction.

Puerto Rico has not opted out of the federal bankruptcy exemptions, so debtors may choose between Puerto Rico's state exemptions and the federal exemptions — whichever set provides better protection for their specific assets.

Puerto Rico state exemptions protect household appliances, kitchen equipment, washing machines, radios, televisions, and certain personal property. Household goods are protected up to $12,000 in total value.

Under Puerto Rico exemptions, vehicle equity is protected up to $3,500. Under federal exemptions (if elected), the motor vehicle exemption is $5,025. Debtors should compare both sets to maximize protection.

Wage garnishment in Puerto Rico is limited to 25% of disposable earnings, consistent with federal limits. Certain income sources like Social Security and public assistance are fully exempt.