NEW YORK BANKRUPTCY LAW

New York Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

New York Bankruptcy Statistics: In 2009, over 57,739 bankruptcies were filed in the state of New York. Personal Bankruptcies accounted for the majority of the total filings or 93.74%.

New York State Bankruptcy Exemptions

Homestead

The home (“homestead”) exemption is limited to $50,000. New York defines “homestead” broadly, including not only real property, but also co-ops or mobile homes.

Personal Property

In New York for an item or an expense to be exempt when filing bankruptcy it must be on the list of specifically exempt items, and the sum total of the entire list must not exceed $5000; if the debtor does not have personal property to exempt, he can exempt up to $2500 in cash.

The following items or expenses are exempt in their entirety.

1. Family pictures
2. Seat or pew in a place of worship
3. Clothing and household furnishings
4. Dishes and utensils for eating
5. College tuition savings program trust funds.
6. Health aids, including service animals and their food
7. Damage awards in a wrongful death action
8. Security deposition to landlords and utility companies

One of each of the following items is exempt.

1. Refrigerator
2. Radio
3. Television
4. Wedding ring
5. Watch limited to $35
6. Sawing machine

The following items are exempt for sixty days after filing bankruptcy.

1. Stove with fuel
2. Domestic animals with food (limited to $450)

The following items are exempt up to a designated limit or according to a specified condition.

1. Payments for damages suffered to an exempt property for up to a year after the debtor receives the payment
2. Spendthrift trusts principle and 90% of the generated income, if the trust was not created by the debtor
3. Burial plots without a structure, not exceeding ¼ of an acre
4. Books, including the bible and school books up to $50
5. Damage awards for personal injury for up to a year after receiving the compensation
6. Damage awards for lost future earnings which are necessary for support
7. Motor Vehicles, not exceeding $2,400

Insurance

The following insurance types are exempt when filing bankruptcy in New York.

1. Disability or illness benefits limited to $400 a month
2. Life Insurance proceeds, where the beneficiary is not debtor, or the debtor’s spouse is the filer of the policy
3. Life insurance proceeds, where the policy contains a valid clause prohibiting the use of proceeds to pay creditors of the beneficiary
4. Annuity contracts, if the debtor paid for the contract and where the annuity was purchased within six month of filing for bankruptcy, the exemption is limited to $5000

Pensions

Federal pension exemptions apply to bankruptcies filed in New York, even though, in general, federal exemptions do not apply.

The following individuals and their survivors’ pension are exempt when filing bankruptcy in New York.

1. Teachers
2. State employees
3. Village police officers
4. Volunteer ambulance workers
5. Voluntary firefighters benefits

The following types of pensions are exempt when filing bankruptcy in New York.

1. Public retirement benefits
2. Private retirement benefits (ex: IRA)
3. ERISA-qualified pension plans

Public Benefits

The following public benefits are exempt when filing bankruptcy in New York.

1. Public assistance and home relief
2. Unemployment compensation
3. Social security benefits
4. Veterans’ benefits
5. Aid for disabled, blind or elderly individuals
6. Compensation awarded to victims of crimes

Tools of the Trade

This is not a separate exemption. The items listed below fall within the limits set for the personal property exemption.

The following items have been considered tools of the trade in the state of New York.

1. Farm machinery, team, and food for team for 60 day after filing bankruptcy

The following tools of the trade are limited to $600 in total.

1. Furniture
2. Books
3. Tools
4. Implements needed for professional development

The following exemptions apply to members of the military.

1. Uniforms
2. Medal
3. Emblem
4. Equipment
5. Horse
6. Arms
7. Sword

Wages

Earned, but unpaid wages which are received sixty days before filing for bankruptcy are 90% exempt.

Miscellaneous Texas Bankruptcy Exemptions

Child support and alimony are exempt when filing for bankruptcy in New York.

Federal Bankruptcy Exemption: No

New York Bankruptcy Courts:

United States Bankruptcy Court, Eastern District of New York

United States Bankruptcy Court, Northern District of New York

United States Bankruptcy Court, Western District of New York