New York Bankruptcy Exemptions
One of the major concerns always voiced by people considering bankruptcy is "what can I keep?" It is important to consider which assets you may be able to keep before you file, so that you know what to expect.
The attorneys at Macco & Stern, LLP practice bankruptcy law exclusively. We take pride in our comprehensive knowledge of the Bankruptcy Code and our ability to find the right solutions for each client. Please contact us today to discuss New York bankruptcy exemptions in a free initial consultation.
New York State Bankruptcy Exemptions
1. There are significant changes in the allowable exemptions under New York State law effective January 22, 2011. The following are some highlights of the changes under the bankruptcy exemptions.
2. The change in law also permits the person filing in New York State to opt out and choose the Federal exemptions. Whether there is an advantage or disadvantage in doing so must be analyzed by an experienced bankruptcy attorney. These are very significant changes to the bankruptcy exemptions which will unquestionably result in more people choosing to file bankruptcy.
3. Homestead Exemption. A person who resides in his or her primary residence, can now claim an exemption of $150,000.00. Therefore, if a husband and wife own a home together and reside at that home, they can now exempt up to $300,000.00 worth of equity in that home.
4. You can exempt a wedding ring, a watch, jewelry and art not exceeding $1,000.00.
5. You can exempt necessary working tools and implements applicable to a trade or to a profession not exceeding $3,000.00 in value.
6. The automobile exemption has now increased to $4,000 of equity per vehicle.
7. Household goods and wearing apparel are now protected up to $10,000.00 in value.
8. (A) Cash exemption. To the extent you do not claim all of the
$10,000.00 in household goods or wearing apparel, you may exempt cash up to $5,000.00 per person so long as it does not exceed the aggregate of the $10,000.00 exemption.
(B) In addition, if you do not claim a homestead exemption,
you can assert an additional $1,000.00 exemption in personal property, bank account or cash. Therefore, you may be able to exempt up to $6,000.00 per person in a bank account, cash or possible tax returns.
9. Some of the Federal Exemptions include:
(A) $10,779.00 exemption in household goods, wearing apparel and household furnishings.
(B) All Social Security benefits, unemployment compensation, Veteran's benefits, disability, illness or unemployment benefits; (this also applies to the New York State exemptions).
(C) A payment not to exceed $20,200.00 on account of personal bodily injury.
(D) Most pension and retirement benefits.
(E) You can exempt $20,200 as a real property exemption under 522(a)However, there is a "wild card" provision that permits the following:
(1). A debtor may use up to $1,075.00 on any property plus up to $10,825.00 of any unused amount of the homestead exemption.
(2). Therefore, if your home has nominal equity or you do not own a home, you can use a total of $11,975.00 as a wild card exemption on any property.
Our New York bankruptcy attorneys are available to discuss these and other specific bankruptcy rules and exemptions.
Long Island Bankruptcy Lawyer
Attorneys Michael Macco and Richard Stern are two of only 11 total Chapter 13 bankruptcy trustees and Chapter 7 bankruptcy trustees on Long Island. Our full-service bankruptcy firm has served our community for more than 30 years.
Contact our Long Island bankruptcy attorneys when you are concerned with what bankruptcy exemptions are available to you. We provide a free initial consultation for individuals in need of debt relief, and we also represent an impressive list of businesses in matters before the U.S. Bankruptcy Court.
We are a debt relief agency. We help people obtain relief under the Bankruptcy Code.