Bankruptcy Exemptions for New York State Debtors

Tuesday, October 28th, 2014, 12:46 am

There are exemptions some people may qualify for when filing for Chapter 7 bankruptcy in New York, which can help a great deal in managing your remaining finances and overall stress level. First, let’s explain what we mean by “exemption.” When you declare bankruptcy, most people think all of their possessions are “up for grabs” by your creditors, but in reality, certain property may be eligible for protection from creditors when you file for Chapter 7 bankruptcy, and in some cases, Chapter 13.


If you are considering bankruptcy, contact Michael F. Kanzer & Associates, P.C in Brooklyn. Our office can help halt creditor calls, lawsuits, foreclosures, repossessions and more by helping you file for bankruptcy if we decide together that’s the best course of action in your particular circumstances.


Below, we have shared of the most frequently used bankruptcy exemptions in New York,

Under Civil Practice Law and Rules §5205 you may be able to protect anywhere up to $10,000 worth of the total value of the following items:

Homestead- included in the category is the filer’s house, condominium, co-op or primary residence mobile home for the value below, which varies by property location:

In Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam counties, the couple or individual who files for Chapter 7 Bankruptcy can claim $150,000.00.

In Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster counties, you can claim $125,000.00.

In all of the other counties in the state of New York, it’s $75,000.

Personal Property under Banking 407, $600.00 on deposit with a savings and loan association.

Under 5205: Stoves, heating equipment and fuel as well as food for you and your family for 120 days. Also: sewing machine, domestic animals up to $1,000 in value, family photos and portraits, religious texts, school books, books up to $500 in value, seat or pew used for religious worship, clothing, furniture, refrigerator, radio, tv, computer, cell phone, kitchen supplies, prescribed health aids, wedding ring, jewelry and art up to $1,000 in value.

5205, Debtor & Creditor §282 – One motor vehicle up to $4,000 in value or up to $10,000, only if equipped for use by a debtor who is disabled debtor.

5205 – Property or damages arising from the damage of exempt personal property, for up to one year after collection of proceeds. For example, an insurance claim for a damaged vehicle or a cause of action against someone who vandalized your home.


Though there are a variety of other exemptions commonly used by people filing for bankruptcy in New York, this list can serve as a thorough explanation to help you begin to understand what you’re entitled to under the law.


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Category: Bankruptcy Law, Chapter 7 Bankruptcy

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