Submit your information to schedule a free consultation with attorney Andrew M. Doktofsky.
When a debtor files for bankruptcy, the federal Bankruptcy Code and New York law both provide for property exemptions. In a Chapter 7 bankruptcy filing, the exemptions will determine what property the debtor is entitled to keep. In a Chapter 13 bankruptcy filing, the exemptions will be used in determining how much unsecured creditors must be paid.
A debtor in New York is permitted to use either the federal Bankruptcy Code property exemptions or the property exemptions provided by New York state law. However, the debtor may choose only one set of exemptions. Whether a debtor in New York should utilize the federal exemptions or the New York state exemptions will be determined by various factors. Generally, a debtor in New York who has substantial equity in his or her primary residence will utilize the New York state exemptions in order to take advantage of the generous homestead exemption provided by New York law.
To utilize the New York exemptions, a debtor must have resided in New York for a period of at least two years prior to the bankruptcy filing. If not, the debtor must utilize the exemptions as provided for by the laws of the state in which the debtor resided in the two-year period preceding the filing. If the debtor has resided in more than one state for the two-year period, then the debtor must use the exemptions provided for by the state in which the debtor resided for the greater part of the 180 days that preceded the two-year period preceding the bankruptcy filing.
Contact the law firm of Andrew M. Doktofsky, P.C. at (631) 673-9600 to find out what property exemptions you are entitled to in bankruptcy. Attorney Andrew M. Doktofsky is experienced and knowledgeable in both federal and New York state bankruptcy law. Call Andrew M. Doktofsky, P.C. today to determine what property exemptions apply to your particular bankruptcy case throughout the areas of Suffolk County and Nassau County, New York.
Under § 522 of the Bankruptcy Code, a debtor is entitled to certain property exemptions when filing for bankruptcy, unless state law specifies otherwise. Debtors in New York are permitted to utilize the exemptions contained in the Bankruptcy Code, including:
New York state bankruptcy exemptions for personal property are governed by New York’s Civil Practice Law and Rules § 5205, and New York Debtor and Creditor Law §§ 282 and 283. Debtors in New York that choose to utilize the New York state exemptions may exempt the following personal property in a bankruptcy filing:
According to N.Y. Debt. & Cred. Law § 283, a debtor can exempt an aggregate of personal property, including the items listed above, not exceeding $11,025.
If a debtor does not use the entire $10,000 exemption in personal property, the debtor can additionally exempt cash not to exceed the difference between $10,000 and the property exempted, or $5,525 in cash, whichever is less. Cash means currency, savings bonds, bank accounts, and tax refunds not yet received. Note: The New York state cash exemption may not be used if the homestead exemption is used.
Under the N.Y. Debtor & Creditor Law, the following property is also exempt in bankruptcy:
According to New York’s Civil Practice Law and Rules § 5206, certain real property is exempt from enforcement of money judgments, which is also known as the homestead exemption. The homestead exemption applies to debtors filing for bankruptcy in New York.
The debtor’s principal residence is exempt in bankruptcy up to the following amounts in New York:
The exemption limits apply to the value of the residence above liens and encumbrances, i.e. the debtor's equity in the property. Additionally, this exemption applies to each individual debtor. So, if a joint bankruptcy petition is filed (husband and wife) and the property is owned by both debtors, then double the amount of the exemption limit in the residence can be protected.
Chapter 5 of the Bankruptcy Code - Title 11 of the United States Code, which is entitled “Bankruptcy,” contains the federal law regarding bankruptcy. The Code governs all bankruptcy cases in the United States. This link is directly to the property exemptions in Chapter 5.
Debtor and Creditor Law – This link is to New York’s laws pertaining to personal property bankruptcy exemptions in New York, also known as Article 10-A of the Debtor and Creditor Law.
Civil Practice Law and Rules Property Exemptions – This link is to New York’s laws pertaining to enforcement of money judgments, also known as Article 52 of the Civil Practice Law and Rules. This article contains the real and personal property exemptions in New York.
The Bankruptcy Court for the Eastern District of New York - This court serves the Eastern District of New York, including the counties of Nassau, Suffolk, Brooklyn and Queens, and is a unit of the U.S District Court. All bankruptcy proceedings in the Eastern District of New York are filed here.
Contact the law firm of Andrew M. Doktofsky, P.C. today for a consultation about what property you may be able to exempt in bankruptcy in New York. Andrew M. Doktofsky will help you determine what property exemptions apply to your Chapter 7 or Chapter 13 bankruptcy case. Call (631) 673-9600 for a consultation about filing for bankruptcy in Suffolk County and Nassau County, Long Island, New York.