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I have a (somewhat) curiosity question concerning the homestead exemption in Chapter 7 bankruptcy in Pennsylvania. I have a home with no equity, but I have a lot of credit card debts and am considering filing Chapter 7. If I have an addition constructed on my home (Increasing the home value by say $25,000) and pay for it by credit card - and then wait 6-12 months before filing Chapter 7, can I claim the $25,000 as Homestead Exemption and discharge the debt even though that $25,000 is part of the debt to be discharged? Does anyone know of a statutory reason I couldn't do this? Are bankruptcy judges allowed to make "judgment calls", or do they go strictly by the statute? Thanks for everyone's thoughts.