When you file for Chapter 7 bankruptcy, you’re able to settle your debts by selling your assets and paying off whatever debtors you can. However, when you go through the liquidation process, there may be certain assets or items you don’t want to sell.
New York’s bankruptcy exemptions can help you protect some of those assets from being sold. However, only some items can be protected.
New York Exemptions. vs. Federal Bankruptcy Exemptions
When you file for bankruptcy, you’re either able to follow the New York State bankruptcy exemptions or federal bankruptcy exemptions. However, you are not able to choose both, unless you are military or a veteran hoping to protect your military retirement account.
Let’s take a look at a few common New York state bankruptcy exemptions:
- Personal Property: In New York state, you’re able to protect personal property, including up to $11,025 worth of stoves and heating equipment, family photos and portraits, books, domestic animals, food for animals and family members, clothing, furniture, and technology.
- Homestead: If you choose to use the homestead exemption, you can protect your primary residence up to $165,550 value in Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, and Putnam counties. This price is lower for other New York counties.
- Motor Vehicle: You are also able to protect a vehicle valued up to $4,425. If you are a disabled individual, that value is $11,025.
- Wages and Income: If you receive court-ordered alimony or child support, you’re able to protect the full amount. You are also able to protect 90% of your income within the first 60 days after filing for bankruptcy.
Properly applying these exemptions can help you save your home, vehicle, or retirement funds from liquidation. When the bankruptcy process is already so stressful, using the exemptions that apply to your situation can make your process a bit easier. However, in order to ensure they’re properly applied, you want to work with a professional bankruptcy attorney.
For assistance filing for bankruptcy or if you have additional questions about what items can be exempt, contact our bankruptcy team at Michael F. Kanzer & Associates, P.C. For a free consultation, give our Brooklyn office a call at 718.769.7200.