New York Bankruptcy Exemptions: Protect Your Property in Chapter 7

Bankruptcy exemptions protect your essential belongings when you file for bankruptcy. You won’t lose everything to pay off debts. These laws vary by state.

New York offers generous exemptions if you’ve lived there for at least two years. You can protect your home, car, and personal property. Most people keep their essential belongings through Chapter 7 bankruptcy.

Understanding New York Bankruptcy Exemptions

Exemptions help you maintain a basic standard of living after bankruptcy. You can keep items you use daily. Bankruptcy laws don’t protect luxury items like expensive jewelry or high-end vehicles.

Most filers keep their essential property through exemptions. Your goal is a fresh start, not losing everything you own.

Federal vs. State Exemptions in New York

New York residents can choose between state and federal bankruptcy exemptions. You must pick one set or the other. You cannot mix and match exemptions.

You need to be a New York resident for at least two years before filing. Most New York filers use state exemptions because they’re more generous. The state homestead exemption is much higher than the federal option.

New York Real Property Exemptions

Homestead Exemption by County

The homestead exemption protects equity in your primary residence. Equity equals your home’s market value minus your remaining mortgage balance.

New York’s homestead exemption varies by county:

• Queens, Kings, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, or Putnam counties: $204,825
• Dutchess, Albany, Columbia, Orange, Saratoga, or Ulster counties: $170,700
• All other New York counties: $102,400

Married couples can double these amounts if both names are on the deed. You can also protect a burial plot up to a quarter-acre.

The federal homestead exemption is only $31,575. New York homeowners benefit more from state exemptions. speak with a bankruptcy attorney for free to determine which exemptions work best for your situation.

Personal Property Exemptions in New York

You can keep most household items you use daily. New York fully protects many personal belongings.

Fully Protected Household Items

• Appliances, stoves, and heating equipment for home use
• Fuel for 120 days
• Sewing machines
• Religious texts
• Family photos and portraits
• School books
• Books up to $500 in value
• Seats or pews used for religious worship
• Domestic animals
• Food necessary for you and your family for 120 days, up to $1,000
• Clothing and household furnishings
• One refrigerator, radio, television, computer, and cell phone
• Kitchenware and prescribed health aids
• Wedding ring, watch, and jewelry
• Art up to $1,000 in value
• Necessary tools for your trade, up to $3,000
• Military uniforms, arms, equipment, pensions, and awards
• Service animals and necessary medical accessories

Motor Vehicle Exemption

You can protect equity in one vehicle up to $4,825. If your vehicle is equipped for a disabled person, you can exempt $11,975.

Most filers worry about keeping their car when they have a loan. Car loans work differently than unsecured debts in bankruptcy.

Wildcard Exemption

New York offers a $1,100 wildcard exemption for any property except real estate. You can only use the wildcard if you haven’t used the homestead exemption.

The wildcard protects property not covered by other exemptions. You can apply it to cash, bank accounts, or other assets.

Money Benefits and Financial Exemptions

New York protects various financial assets and benefits. You can keep money you need for basic living expenses.

Protected Financial Assets

• Security deposits for rental real estate or utilities
• College tuition: New York State College Choice Tuition Savings Program payments
• Up to $11,375 if you own the college savings account
• $1,740 on deposit in any bank account
• Property held in spendthrift trusts created by someone other than you
• Retirement accounts: IRA, 401(k), Keogh, or other qualified plans
• Public assistance benefits
• Damages for damaged property, up to one year after collection

Wage Exemptions

New York protects most of your earned income:

• 90% of income received within 60 days before filing bankruptcy
• 90% of earnings from farm milk sales
• 100% of military pay for noncommissioned officers, privates, or musicians
• Court-ordered alimony, maintenance, or child support reasonably needed for support

Public Assistance Benefits

All public assistance benefits are fully exempt:

• Aid to blind, aged, or disabled individuals
• Crime victim’s compensation
• Home relief
• Local public assistance
• Social Security benefits
• Unemployment compensation
• Veterans’ benefits
• Workers’ compensation

Lawsuit Settlements and Injury Awards

You can exempt $8,550 in personal injury compensation. The award must specifically state the money compensates for bodily injury. Pain and suffering damages aren’t protected.

You can exempt future earnings that compensate you or your dependents. The amount must be reasonably necessary for support.

Bodily Injury Compensation

New York protects these injury-related benefits:

• Crime victim’s reparations benefits
• Wrongful death payments for your dependent
• Up to $8,550 for personal bodily injury

Federal vs. New York Exemptions Comparison

Compare both exemption sets before filing. Choose the set that protects more of your property.

New York homeowners benefit from state exemptions. Renters might benefit from federal exemptions depending on their property.

How to Choose Your Exemptions

Calculate your property equity before choosing exemptions. Equity is current value minus what you owe.

Homeowners almost always benefit from New York state exemptions. The homestead exemption is significantly higher than federal limits.

Renters should compare both sets carefully. Federal exemptions offer a larger wildcard and household goods exemption. State exemptions fully protect many specific items.

A bankruptcy attorney can help you choose the right exemptions. speak with a bankruptcy attorney for free to analyze your specific situation.