Exemptions determine what property you get to keep when you file bankruptcy. Understanding them is critical - they can mean the difference between keeping and losing your home, car, and savings.
New York's homestead exemption protects up to $179,975 - $215,550 (varies by county) of equity in your primary residence. Equity is the difference between your home's value and what you owe on the mortgage.
Bankruptcy exemptions are laws that protect certain property from being taken to pay your creditors. In Chapter 7, non-exempt property can be sold by the trustee. In Chapter 13, the value of non-exempt property affects how much you must pay through your plan.
New York gives you the choice between state and federal exemptions. Many filers choose state exemptions because of the higher homestead protection, but federal exemptions offer a more generous wildcard.
Protects up to $179,975 - $215,550 (varies by county) of equity in your primary residence. Equity is your home's current market value minus what you owe on the mortgage.
N.Y. CPLR 5206; Debtor & Creditor Law 282
Protects up to $4,825 of equity in one motor vehicle. If you owe more than the car is worth (you are "underwater"), there is no equity to protect and the exemption is not needed.
N.Y. CPLR 5205(a)(8); Debtor & Creditor Law 282
| Property | Amount |
|---|---|
| Household goods, furnishings, appliances | No per-item limit |
| Tools of trade, books, equipment | $3,000 |
| Retirement accounts (IRA, 401k, pension) | Unlimited |
| Social Security benefits | Unlimited |
| Unemployment benefits | Unlimited |
| Workers' compensation | Unlimited |
| Public assistance benefits | Unlimited |
New York's homestead exemption protects up to $179,975 - $215,550 (varies by county) of equity in your primary residence. Equity is the difference between your home's value and what you owe on the mortgage.
New York's motor vehicle exemption is $4,825. If your car equity is below that amount, you can keep it in Chapter 7. In Chapter 13, you keep your car regardless. Learn about Chapter 13.
Yes. Retirement accounts including IRAs, 401(k)s, and pensions are fully exempt. Social Security benefits are also fully protected under federal law (42 U.S.C. 407).
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