Exempt Property in New York

New York state law provides that the exemptions under the bankruptcy code will be determined by New York statutes, rather than the default provisions in the Bankruptcy Code.

The most significant exempt property is:

Homestead:

Each debtor is entitled to a homestead exemption of $10,000. Married couples filing jointly have a $20,000 exemption. The exemption applies only to the equity in your primary residence. The secured portion is not actually exempt, but because the mortgage lien is not discharged in the bankruptcy, it is of no value to your unsecured creditors. So if your home is worth $100,000 and your mortgage debt is $85,000, then your equity is $15,000. If you are a single person, there would be $5,000 of non-exempt equity, and if you are married and filing jointly there is no non-exempt equity.

Automobile:

Each debtor is allowed an exemption for one motor vehicle with a value of $2,400. Again consider the equity you have in the car, if any, over the debt you owe on the car. For the lien to be valid on a motor vehicle, it must be recorded on your certificate of title. On occasion, the lender will fail to place the lien on the title, which makes them an unsecured creditor and you the owner of the full value of the vehicle.

Retirement:

All your savings which are in some kind of qualified retirement fund are exempt. These include 4011s, IRAs, Simple Plans, SEP-IRAs, profit sharing plans and most any other form of retirement money. These funds are also inaccessible to your creditors if they sue you for money before you file a bankruptcy. For this reason, it is generally a bad idea to borrow from you retirement plan to pay off debts.

Personal
items:

In general all your personal items are considered exempt. The statutes provide a list of the things which are exempt, but for the most part, the items you use everyday in your home do not have much resale value. So even if these items are not legally exempt, they have so little value that they are not considered.

Settlements:

The settlements you receive for personal injuries are exempt up to the value of $7,500

Cash:

You may exempt up to $5,000 in cash or bank deposits, if you do not claim the homestead exemption

There are several other exemptions which are available, you should consult an attorney for further details on available exemptions and their application in your case.