The New York bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in New York. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in New York you may also use certain federal exemptions in addition to your New York exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
Homestead | Real property including co-op, condo or mobile home, to $10,000 Husband & wife may double | 5206(a) In re Pearl, 723 F.2d 193 (2nd Cir. 1983) |
Personal Property | Bible; schoolbooks; books to $50; pictures; clothing; church pew or seat; stoves with fuel to last 60 days; sewing machine; domestic animal with food to last 60 days, to $450; food to last 60 days; furniture; refrigerator; TV; radio; wedding ring; watch to $35; crockery, cooking utensils and tableware needed, to $5000 total (with farm machinery, etc.) Burial plot, without structure to ¼ acre Cash, the lesser of either $2500, or an amount that, with annuity, totals $5000; in lieu of homestead Health aids, including animals with food Lost earnings recoveries needed for support Motor vehicle to $2400 Personal injury recoveries to $7500 (not to include pain and suffering) Security deposits to landlord, utility company Trust fund principal, to 90% of income Wrongful death recoveries for person you depended on, needed for support |
5205(1)-(6), Debtor & Creditor 283(1) 5206(f) Debtor & Creditor 283(2) 5205(h) Debtor & Creditor 282(3)(iv) Debtor & Creditor 282(1) Debtor & Creditor 282(3)(iii) 5205(g) 5205(c), (d) Debtor & Creditor 282(3)(ii) |
Insurance | Annuity contract benefits due or prospectively due the debtor, who paid for the contract; if purchased within 6 months prior & not tax-deferred, only $5000 Disability or illness benefits to $400 per month Life insurance proceeds left at death with the insurance company pursuant to agreement, if clause prohibits proceeds from being used to pay beneficiarys’ creditors Life insurance proceeds and avails if the person effecting the policy is the spouse of the insured | Insurance 3212(d), Debtor & Creditor 283(1) Insurance 3212(c) Estates, Powers & Trusts7-1.5(a)(2) Insurance 321(b)(2) |
Miscellaneous | Alimony, child support needed for support Property of business partnership | Debtor & Creditor 282(2)(d) Partnership 51 |
Pensions | ERISA-qualified benefits needed for support, includes IRAs IRAs needed for support Keoghs needed for support Public retirement benefits State employees Village police officers | Debtor & Creditor 282(2)(e), 5205(c) Debtor & Creditor 282(2)(e), 5205(c) Debtor & Creditor 282(2)(e), 5205(c) Insurance 4607 Retirement & Social Security 110 Unconsolidated 5711-o |
Public Benefits | Aid to blind, aged, disabled, AFDC Crime victims’ compensation Home relief, local public assistance Social security Unemployment compensation Veterans’ benefits Workers’ compensation | Debtor &Creditor 282(2)(c) Debtor & Creditor 282(3)(i) Debtor & Creditor 282(2)(a) Debtor & Creditor 282(2)(a) Debtor & Creditor 282(2)(a) Debtor & Creditor 282(2)(b) Debtor & Creditor 282(2)(c) |
Tools of Trade | Farm machinery, team, food for 60 days, professional furniture, books & instruments to $600 total Uniforms, medal, equipments,. Emblem, horse, arms and sword of military member | 5205(b) 5205(e) |
Wages | 90% of earnings from milk sales to milk dealers 90% of earned but unpaid wages received within 60 days prior (100% for a few militia members) | 5205(f) 5205(d), (e) |
For more information on filing bankruptcy in New York explore New York Bankruptcy Law.
