New York Bankruptcy Exemptions- Two Choices Available for New Yorkers
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New York Bankrutpcy Exemptions

New York Bankruptcy Exemptions

Although a person files for bankruptcy and is able to wipe out most of his debts, the Code does not intend to leave a consumer with absolutely no assets. This is were an experienced bankruptcy attorney comes it to get you the most yur legally entitled to, during the bankruptcy procedure.

In New York, there are two bankruptcy exemptions schemes, a federal bankruptcy exemption and a New York state exemption that can be used by a debtor. If the net value of your property is less than the amount of your permitted exemptions, your property will not be affected and all of your creditors will be wiped out. Many people are surprised to find out that they can keep all of their property and still wipe out or discharge all of their debt.






A listing of the Federal Exemptions used in the State of New York is as follows:


Allowable Exemption Amount under 11 U.S.C. Section 522

Section of § 522 Allowing Exemption


Value in Real property, home, mobile home, co-op, or burial plot: up to $20,200. Up to $10,125 of this amount may be used as a wildcard and applied to any kind of property. Thus if you do not use the $20,200 for Real Estate you can use the wildcard of $10,125 to protect any asset.

(d)(1); (d)(5)


Life insurance policy (not yet matured)



Life insurance policy accrued dividends: up to $10, 755. You can have cash surrender value in Life Insurance policy up to this amount.



Any and all Unemployment, disability, and illness benefits.



On a policy taken out from someone that the debtor depended upon, the entire amount that is necessary for support is exempt.


Child Support

Any child support and alimony that is necessary for support.



All amounts in retirement accounts that are tax exempt. Accounts such as 401(k)s, 403(b)s, SEP, SIMPLE IRAs, Erisa qualified pension plans are completely exempt.



IRAs and Roth IRAs: up to $1,095,000 per person.



Car or automobile up to $3,225 is exempt.



Household goods, furnishings, clothing, etc. up to $525 per item and up to $10,775 total.



Jewelry: up to $1,350.



Health aids: all.



Recovery for the wrongful death of a person on whom the debtor depended: all.



Recoveries for personal injury (excluding amounts for pain and suffering and pecuniary loss): up to $20,200.



Payments for lost earnings: all.


Public Benefits

Public assistance benefits: all.



Social Security benefits: all.



Unemployment compensation benefits: all.



Veterans' benefits: all.



Crime victim compensation: all.


Tools of Your Trade

Implements, tools, and books: up to $2,025.



No exemption.



Any property: up to $1,075.



Any property: up to $10,125 of the unused homestead exemption.





The federal exemptions have some generous provisions not otherwise available in New York statutes.  They provide many additional protections that would be most useful to those consumers who do not  have a house or do not need to take advantage of their homestead exemption,  in which case the New York State bankruptcy Exemptions are superior.

The federal exemptions contain a “wild card” exemption that enables consumers to protect a generous amount of cash.


A listing of the State Bankruptcy Exemptions used in the State of New York is as follows:



  •  Homestead: Nassau, Suffolk, Kings, Queens, Bronx, Richmond, Rockland, and Putnam counties.



  • Homestead: Dutchess, Albany, Columbia, Orange, Saratoga and Ulster counties


  • Homestead: all other NY counties.)      


  • Motor Vehicle:


  •  Motor Vehicle: if equipped for use by disabled person



  • Cash:


  • Tools of trade:


  • Aggregate personal property exemption:


  • Wildcard (personal property, bank account or cash):   



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