Exemptions are things you get to keep even though you file for bankruptcy. They apply in both Chapter 7 and Chapter 13.
This web site is for informational purposes only, and is posted by Allan Bloomfield, an attorney admitted to practice in the State of New York and the Bankruptcy Courts in the Eastern District of New York and the Southern District of New York. The Eastern District comprises Staten Island, Brooklyn, Queens, Nassau County and Suffolk County. The Southern District comprises Manhattan, The Bronx, and the counties of Westchester, Dutchess, Orange, Putnam, Rockland and Sullivan. Because the practice is limited to New York, we only discuss exemptions available in New York.
New York's Exemptions
If you file in New York (and you generally must file your case in the state where you live) you will be entitled to exempt the following property. (This is not a complete list but covers almost all cases. All amounts are doubled for a joint case.)
Homestead, $50,000.00
This includes the equity in your house, co-operative apartment or condominium. Equity means the amount above your mortgage. If your equity is more than $50,000.00 ($100,000.00 in a joint case) you would usually want to file under Chapter 13 to keep the house. If for some reason you do lose your home, you still retain your exemption. This means that if the house is sold and there is money left after the mortgage is paid, you will receive the next $50,000.00 free of any claims of your creditors.
Money, $2,500.00
If you do not take an exemption for a homestead, you can exempt up to $2,500.00 in money, which can be cash, bank accounts, tax refunds or savings bonds.
Household goods, unlimited
This generally includes all of your furniture and other household goods.
Wearing apparel, unlimited
This includes all of your wearing apparel, but may not include items like furs or valuable jewelry.
Jewelry, one wedding ring and a $35 watch
There is no exemption for jewelry other than a wedding ring and a watch that is worth no more than $35.00. Earrings, bracelets, necklaces and decorative rings are usually of little or no value and can often be classified as wearing apparel, so unless you have an expensive item of jewelry, this will not be a problem.
Automobile, $2,400.00
Unfortunately, the amount you may exempt for a car is very limited. This was the amount put into the law over 20 years ago. However, since it applies to the equity, if your car still has a loan on it, you will be able to keep your car if you continue making your monthly payments. If your car is paid off and its value is above $2,400.00, you may have to file a Chapter 13 case to keep it. As with a house, if your car has to be sold, and the price exceeds the car loan, you will receive the next $2,400.00.
Security Deposits, unlimited
Your security deposits with your landlord and utilities companies are completely exempt.
Pensions, IRAs, 401(k)s and other retirement benefits, unlimited
All pension benefits, thrift savings plans like 401(k) plans, IRAs and other retirement benefits are exempt.
Life Insurance, unlimited
Life insurance policies, the cash value of the policies and the proceeds of policies are exempt.
Social Security, Disability, Workers' Compensation, unlimited
Social security, social security disability, supplemental security income, disability income, workers compensation, and most other types of government assistance are exempt.
Unemployment benefits, unlimited
Unemployment benefits are completely exempt.
Alimony, child support, maintenance, unlimited
Alimony (now called maintenance) and child support are exempt to the extent reasonably necessary for the support of the debtor. This means such payments are almost always completely exempt.
Personal Injury cases, $7,500.00
Only the first $7,500.00 of any recovery for personal injury or medical malpractice is exempt. The rest is not exempt.
The exemptions available in your case will be discussed with you at your first meeting with the attorney.
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Forest Hills, NY 11375
Phone: 718-544-0500 | Email
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