Can Chapter 13 stop foreclosure on my New York home?

Yes. Filing Chapter 13 immediately stops foreclosure through the automatic stay. You can then catch up on missed mortgage payments through your 3-5 year repayment plan while continuing to make regular monthly payments going forward. This is one of the most powerful tools for saving a home.

Should I choose state or federal exemptions to protect my home?

If you own a home with significant equity, New York's state homestead exemption ($179,975-$215,550) is usually better than the federal homestead exemption ($27,900). However, if you are a renter or have minimal home equity, federal exemptions may be better because of the larger wildcard exemption.

Can You Keep Your House in Bankruptcy in New York?

Q: What is the New York homestead exemption?

New York's homestead exemption under CPLR 5206 protects equity in your primary residence. The amount varies by county: $179,975 in most of New York, and up to $215,550 in higher-cost counties. This exemption applies to houses, condos, co-ops, and mobile homes.

New York's homestead exemption protects $179,975 to $215,550 of equity in your home, depending on the county. Most homeowners keep their homes in bankruptcy - especially in Chapter 13.

In most cases, yes. New York's homestead exemption protects $179,975 to $215,550 of equity in your primary residence, depending on the county. If your equity is within the exemption, you keep your home in Chapter 7. In Chapter 13, you can keep your home while catching up on missed mortgage payments through a 3-5 year plan.

New York Homestead Exemption by County

Under CPLR 5206, New York's homestead exemption varies by county. The exemption protects equity in your primary residence - the difference between your home's fair market value and the total of all mortgages and liens.

County/Region	Homestead Exemption
Kings (Brooklyn), New York (Manhattan), Queens, Bronx, Richmond (Staten Island)	$179,975
Westchester, Rockland, Putnam, Nassau, Suffolk	$215,550
Dutchess, Orange, Ulster, Sullivan, Columbia	$179,975

Example: Your Manhattan co-op is worth $500,000. You owe $380,000 on the mortgage. Your equity is $120,000 - well within the $179,975 exemption. You keep your home.

Keeping Your Home in Chapter 7

In Chapter 7, you keep your home if your equity is within the exemption limit. Key points:

Equity within exemption: You keep the home. The trustee has no interest in selling it.
Must stay current on mortgage: The automatic stay protects you during the case, but you must continue making payments to keep the home.
Reaffirmation not always required: In New York, many lenders do not require reaffirmation of a mortgage. As long as you keep paying, you keep the home.
Excess equity: If your equity exceeds the exemption, the trustee could sell the home, pay you the exempt amount, and distribute the rest to creditors. This is rare in practice.

Keeping Your Home in Chapter 13

Chapter 13 is the most powerful tool for saving a home from foreclosure:

Stop foreclosure immediately - The automatic stay halts foreclosure proceedings the moment you file.
Catch up on arrears - Missed mortgage payments are spread over your 3-5 year repayment plan.
Strip second mortgages - If your home is worth less than your first mortgage balance, a second mortgage or HELOC can be reclassified as unsecured debt and potentially discharged.
Protection for the full plan - The automatic stay lasts throughout the entire 3-5 year plan as long as you make payments.

Important: You must continue making regular monthly mortgage payments going forward in addition to the plan payments that cure the arrears.

State vs. Federal Exemptions for Homeowners

New York State Exemptions

Homestead: $179,975-$215,550
Better for homeowners with significant equity
Vehicle: $4,825
Wildcard: $1,150

Federal Exemptions

Homestead: $27,900
Better for renters or minimal home equity
Vehicle: $4,450
Wildcard: up to $14,875 (unused homestead)

If you own a home, state exemptions almost always provide better protection. If you rent, consider federal exemptions for the larger wildcard. Full exemption comparison.

Co-ops and Condos

New York's homestead exemption applies to co-ops and condos, not just houses. The exemption protects your ownership interest (shares in a co-op, deed interest in a condo) up to the applicable county limit.

For co-op owners, the equity calculation considers the fair market value of your shares minus any underlying mortgage and share loan balance.

Frequently Asked Questions

Can I keep my house if I file bankruptcy in New York?

In most cases, yes. New York's homestead exemption protects $179,975-$215,550 of equity depending on the county. In Chapter 13, you can keep your home while catching up on missed mortgage payments. Learn more.

What is the New York homestead exemption?

It protects equity in your primary residence: $179,975 in the five NYC boroughs and most upstate counties, and $215,550 in higher-cost suburban counties like Westchester, Nassau, and Suffolk. Full exemption details.

Can Chapter 13 stop foreclosure?

Yes. Filing Chapter 13 immediately stops foreclosure through the automatic stay. You can catch up on missed payments through your 3-5 year plan while continuing regular monthly payments.

Should I choose state or federal exemptions?

Homeowners should almost always choose state exemptions for the higher homestead protection. Renters or those with minimal home equity may benefit from federal exemptions with the larger wildcard.

You May Also Find Helpful

1099-C Cancellation of Debt Tax Guide -- 1099cdebt.com
Chapter 7 vs. Chapter 13 Comparison -- chapter7vs13.org
Open Bankruptcy Project -- openbankruptcyproject.org