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NEW YORK BANKRUPTY EXEMPTIONS: ASSETS YOU CAN KEEP WHEN YOU FILE BANKRUPTCY
Christopher Tompkins Attorney At Law 225 Broadway, Suite 2020 New York, NY 10007 212 962-5363 Email: [email protected] Choice Between Federal and New York State Exemption Laws. New York allows you to choose between Federal exemptions( 11 U.S.C. 522(d)) and the New York exemptions outlined below. NY Debtor and Creditor Law § 285. Generally, you may not use both Federal and New York exemptions at the same time except you may use certain Federal exemptions with New York exemptions as noted below. Exemptions for Personal Property Federal Exemptions - Personal Property Health Aids 11 U.S.C. 522(d)(9) Lost Earnings Payments 11 U.S.C. 522(d)(11)(E) Wrongful Death Recovery by Dependent Claimant-Debtor to the extent reasonably necessary for debtor’s support. 11 U.S.C. 522(d)(11)(B) Federal Personal Property Exemptions below. (Specifically, household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments) may not exceed $12,250 in total. 11 U.S.C. 522(d)(3) Animals, valued up to $575 11 U.S.C. 522(d)(3) Crops, valued up to $575 11 U.S.C. 522(d)(3) Clothing, valued up to $575 11 U.S.C. 522(d)(3) Appliances, valued up to $575 11 U.S.C. 522(d)(3) Books, valued up to $575 11 U.S.C. 522(d)(3) Furniture, valued up to $575 11 U.S.C. 522(d)(3) Household Goods, valued up to $575 11 U.S.C. 522(d)(3) Musical Instruments, valued up to $575 11 U.S.C. 522(d)(3) Jewelry, valued up to $1,550 11 U.S.C. 522(d)(4) Motor Vehicle, valued up to $3,675 11 U.S.C. 522(d)(2) Personal Bodily Injury Recoveries, valued up to $22,975 not to include claims for pain and suffering or pecuniary loss. The means an exemption for money damages received for the actual injury (loss). 11 U.S.C. 522(d)(11)(D) New York Personal Property Exemptions Cash Exemption: If you do not take the homestead exemption, you can take an exemption of up to $5,000 (or $10,000 minus the total of other personal property exemptions, whichever is less). NY Debtor & Creditor Law § 283(2). Limits on New York Personal Exemptions: total personal property, tools of trade, and qualified annuity exemptions taken in accordance with NY CPLR § 5205 may not exceed $10,000 in value. NY CPLR § 5205; NY Debtor & Creditor Law § 283(1) Burial Plot up to 1/4 acre in area. NY CPLR § 5206(f) Clothing NY CPLR § 5205 Furniture NY CPLR § 5205 Refrigerator NY CPLR § 5205 Television (one) NY CPLR § 5205 Radio Receiver (one) NY CPLR § 5205 Computer (one) NY CPLR § 5205 Cell Phone (one) NY CPLR § 5205 Crockery NY CPLR § 5205 Cooking Utensils NY CPLR § 5205 Tableware NY CPLR § 5205 Dishes (Plates) necessary for family meals NY CPLR § 5205 Stoves and Home Heating Equipment with fuel to last 120 days ( 4 months). NY CPLR § 5205 Wedding Ring, Jewelry and Art, valued at up to $1,000 NY CPLR § 5205 Religious Texts, School Books, and Leisure Books valued at up to $500. NY CPLR § 5205 Church Pew or Seat owned by debtor NY CPLR § 5205 Domestic Animals with food to last 120 days ( 4 months) valued at up to $1,000. NY CPLR § 5205 Food for Debtor and his family to last up 120 days. NY CPLR § 5205 College Tuition Savings Program Trust Fund NY CPLR § 5205(j) Health Aids, including Service Animals with food; medical, dental, and mobility equipment necessary to maintain life activities. NY CPLR § 5205(h) Lost Future Earnings Recoveries Needed for Support NY Debtor & Creditor Law § 282(3)(iv) Motor Vehicle valued up to $4,000. Motor Vehicle valued up to $10,000 if the vehicle is equipped to assist a disabled persons. NY Debtor & Creditor Law § 282(1). Personal Injury Recovery Damages for actual bodily injury up to $7,500 not to include damages for pain and suffering or actual pecuniary loss. NY Debtor & Creditor Law § 282(3)(iii) Recovery for Injury to Exempt Property up to one year after receiving. NY CPLR § 5205(b) Savings & Loan Savings, valued up to $600. NY Banking Law § 407 Security Deposit to Landlord and/or Utility Company NY CPLR § 5205(g) Spend Thrift Trust Principal and 90% of income from Spend Thrift Trust if Trust not created by debtor NY CPLR § 5205 ( c) and (d). Electronic Deposits of Exempt Payments into bank account within the last 45 days, valued up to $2,500 NY CPLR § 5205(1)(l) Wrongful Death Recovery by Dependent Claimant-Debtor NY Debtor & Creditor Law § 282(3)(ii) Exemptions for Tools of Trade ( Device Used in Work Activity) Federal Exemption-Tools of Trade Implements, Books, and Tools of Trade valued up to $2,300 11 U.S.C § 522 (d)(6) New York Exemption-Tools of Trade Tools of Trade, Necessary Working Tools and Implements ( including those for mechanic), farm equipment, team, professional instruments, professional furniture, and professional library valued up to $3,000 provided such implements (tools of trade) are necessary to debtor’s profession or trade. NY CPLR § 5205(a) and (b). Uniforms, Medal, Emblem, Equipment, Horse, Arms, and Sword if Member of the Military NY CPLR § 5205(e) Exemptions for Retirement Accounts Federal Exemption - Retirement Accounts Regardless of whether you elect to use Federal exemptions or New York State Exemptions, pension and retirement accounts recognized by the IRS are completely exempt (11 U.S.C 522(b)(4))except that Roth and Traditional IRAs exemption amounts are capped at $1.2 million per individual (which bankruptcy judge can raise) SEP and SIMPLE IRAs, along with all other types of non-IRA retirement accounts such as 401(k)s and 403(b)s, are completely exempt. 11 U.S.C. 522(n). 11 U.S.C 522(b)(3)( c). New York Exemption - Retirement Accounts. ERISA qualified benefits, IRAs, and Keoghs and income needed for support. NY CPLR § 5205 (c) NY Debtor & Creditor Law § 282(2)(e) Public Retirement Benefits. NY Insurance Law § 4607 State Employees NY Retirement & Social Security Law § 10 Teachers Retirement Benefits NY Education Law § 524 Village Police Officers NY Unconsolidated Law § 5711-o Volunteer Ambulance Workers’ Benefits NY Volunteer Ambulance Workers’ Benefits Law § 23 |
Exemptions for Public Benefits
Federal Exemption - Public Benefits Public Assistance 11 U.S.C. 522(d)(10)(A) Social Security Benefits 11 U.S.C. 522(d)(10)(A) Unemployment Benefits 11 U.S.C. 522(d)(10)(A) and (C) Veteran’s Benefits 11 U.S.C. 522(d)(10)(B) Crime Victims’ Compensation 11 U.S.C. 522(d)(11)(A) New York Exemption- Public Benefits Aid to Disabled Persons and Persons with Illnesses NY Debtor & Creditor Law § 282 (2)( c) Crime Victims’ Compensation NY Debtor & Creditor Law § 282 (3)( i) Local Public Assistance NY Debtor & Creditor Law § 282 (2)( a) Public Assistance NY Social Services Law § 137 Social Security NY Debtor & Creditor Law § 282 (2)( a) Unemployment Benefits NY Debtor & Creditor Law § 282 (2)( a) Veterans’ Benefits NY Debtor & Creditor Law § 282 (2)( b) Worker’s Compensation Benefits NY Debtor & Creditor Law § 282 (2)( c); NY Workers Compensation Law § 33; NY Workers Compensation Law § 218; Exemptions from Wage Garnishment Federal Exemptions from Wage Garnishment There are no federal exemptions from wage garnishment. See 11 U.S.C § 522 (d) New York Exemption- Wages 100% of pay of noncommissioned officer, private, or musician in U.S. or N.Y. state armed forces NY CPLR § 5205(e) 90% of earned but unpaid wages received within 60 days before & anytime after filing NY CPLR § 5205(d); In re Wiltsie, 463 B.R. 223 (Bankr.N.D.N.Y. 2011) 90% of earnings from dairy farmer's sales to milk dealers NY CPLR § 5205(f). Wild Card Exemption -Bonus Exemption toward Value of Any Asset. Federal Exemption - Wild Card The value of $1,225 of any property. 11 U.S.C. 522(d)(5) The value of $11,500 of the unused homestead exemption amount, for any property. 11 U.S.C. 522(d)(5) New York Exemption - Wild Card $1,000 in any personal property, bank account, or cash, if no homestead exemption is claimed. NY CPLR § 5205 (a)(9). Homestead Exemption This exemption is for your house, co-op apartment, or condominium apartment that you live in. Federal Exemption-Homestead Under Federal Law the exemption for your home which includes a house, condominium, a co-op, a mobile home, or burial plot is up to $22,975; the unused portion of homestead up to $11,500 may be applied to any property. See 11 U.S.C. § 522(d)(1) and (d)(5). New York Exemption - Homestead In New York (Manhattan), Kings (Brooklyn), Queens, the Bronx, (Richmond Staten Island), Nassau, Suffolk, Rockland, Westchester, and Putnam counties you may exempt the value of your residence if it is a house, condominium, co-op apartment, or mobile home up to $150,000 in value. NY CPLR 5206(a). A husband and wife may double this amount up to $300,000 for a home jointly owned. In re: Pearl, 723 F.2d. 193 (2nd Cir., 1983) Exemptions for Insurance Proceeds and Annuities. Federal Exemptions - Insurance and Annuities Life insurance payments to the debtor from a policy created for a person that the debtor depended on or that debtor needed for support. 11 U.S.C. § 522(d)(11)(C) A life insurance contract that has not matured. 11 U.S.C. § 522(d)(7) Benefits from Disability, Illness, or Unemployment Insurance. 11 U.S.C. § 522(d)(10)(C). Accrued dividends and interest from a life insurance policy up to $12,250. 11 U.S.C. § 522(d)(8) New York Exemptions - Insurance and Annuities Annuity contract benefits due to the contract purchaser-debtor. There is a $10,000 limit to these benefits if the debtor purchased the annuity contract within 6 months of filing bankruptcy. NY Insurance Law § 3212(d). NY Debtor & Creditor Law § 283. Cash given to you upon surrender of Insurance policy (contract). NY CPLR § 5205(i) Benefits from Disability or Illness Insurance up to $400 per month. NY Insurance § 3212 ( c) Life insurance proceeds payable at death of insured that are left with insurance company as spendthrift trust that prohibits payment to debtor beneficiary’s creditors. NY EPTL § 7-1.5 (a)(2). Alimony (Maintenance) and Child Support Exemptions Federal Exemption - Alimony and Child Support Alimony (Maintenance) and Child Support needed for support. 11 U.S.C. § 522(d)(10)(D). New York Exemption - Alimony and Child Support Alimony (Maintenance) and Child Support NY CPLR § 5205(d)(3) NY Debtor & Creditor Law § 282(2)(d). Partnership Business Asset Exemption Federal Exemption - Partnership Assets None See 11 U.S.C. 522 New York Exemption - Partnership Assets Property of a Business Partnership New York Partnership Law § 51 
Christopher Tompkins
Attorney At Law 225 Broadway, Suite 700 New York, NY 10007 212 962-5363 Email: [email protected] |
