- - http://longislandbankruptcyblog.com -

The New, New York Bankruptcy Exemption Statutes for 2011

New Bankruptcy Law Exemptions in New York [1] 
Written by Craig D. Robins, Esq.
 
I just posted breaking news about the Governor Paterson’s unexpected signing of the bill to change the New York Bankruptcy Exemption Statutes.  See:  New York Bankruptcy Exemptions Suddenly Increased – This Is the Biggest Bankruptcy News in Years! [2]
 
This Christmas and holiday gift from the outgoing governor is great news for consumers and it will certainly by the major topic of bankruptcy conversation this coming year.  The new law, which will help consumers protect more assets than ever before, will certainly lead to many more consumer bankruptcy filings for years to come.
 
Over Christmas break I prepared a chart outlining the most important changes to the New York exemption statutes that we commonly use for our bankruptcy clients. 
 
There are other changes as well that I didn’t outline, as they never come up.  For example, there are also increased protections for cell phones, health aids, food, heating equipment, religious books, etc.  However, I have never seen a trustee raise any issue of any kind with such assets.
 
The Federal Exemptions Come to New York
 
Perhaps the other major aspect of the new exemption law is that it permits New York residents to choose between the New York exemption statutes and the Federal Exemption statutes which are set forth in Section 522(d) of the Bankruptcy Code.
 
The federal exemptions have never been available in this state before.
 
The federal exemptions have some liberal provisions not otherwise available in New York statutes.  They provide many additional protections that would be most useful to those consumers who do not need to take advantage of their homestead exemption.
 
The federal exemptions contain a “wild card” exemption that enables consumers to protect a generous amount of cash.
 
I will discuss the federal exemptions in future article that I will post later this week.
 
 
Chart Containing the Most Important Changes to the New, 2011 Bankruptcy Exemption Statutes for New York
 

Existing New York State Bankruptcy Exemptions


NEW New York State Bankruptcy Exemptions
Homestead Exemption (note:  this can be doubled for married couples filing jointly, who own the real estate together)

  • $50,000
Homestead Exemption (note:  this can be doubled for married couples filing jointly, who own the real estate together)

  • $150,000 for property in the New York downstate area (Counties of Nassau, Suffolk, Kings, Queens, Bronz, RIchmond, Rockland, Westchester and Putnam)
  • $125,000 for property in the Counties of Dutchess, Albany, Columbia, Orange, Saratoga and Ulster
  • $75,000 for all other counties
Motor Vehicle

  • $2,400
Motor Vehicle

  • $4,000
 

 
Motor Vehicle equipped for use by a disabled person (new category)

  • $10,000
Cash Exemption if Homestead Exemption is taken

  • None
Cash Exemption if Homestead Exemption is taken

  • $1,000.   (Note:  New exemption.  Can also be used for personal property.   However, the Federal Exemption is more generous.)
Jewelry and Art 

  • a wedding ring
  • a watch worth up to $35
Jewelry and Art

  • a wedding ring
  • a watch, jewelry and art worth up to a total of $1,000 (Notes:  New exemption.  This will make it much harder for trustees to go after engagement rings)
Tools of Trade  (these are the working tools and implements that are necessary to carry on one’s business)

  • $600 
Tools of Trade  (these are the working tools and implements that are necessary to carry on one’s business)

  • $3,000
Aggregate Individual Bankruptcy Exemption for Cash, Household Goods and Clothing

  • $5,000

Aggregate Individual Bankruptcy Exemption for Cash, Household Goods and Clothing

  • $10,000 

 

Link to the Actual Bankruptcy Exemption Bill

Here is a link to the actual bankruptcy exemption bill [3].

 

Be Sociable, Share!
  • [4]
  • [5]
  • [6]
  • [7]
  • [8]