New York bankruptcy laws provide debtors a place to turn when debt gets out of hand. These laws outline the way in which bankruptcy proceedings will occur in New York.

Bankruptcy Exemptions

New York bankruptcy laws place exemptions on certain properties. These items cannot be taken by the court and sold to pay your debts. The state’s exemptions are as follows:

• Up to $50,000 for a homestead
• Up to $2,500 in cash in lieu of the homestead
• Up to $2,400 for a vehicle
• Lost earnings recoveries needed for support
• Public benefits, including disability, worker’s compensation, unemployment, veterans’ benefits and social security benefits
• Child support and alimony
• Bible and schoolbooks
• Uniforms for work
• Business equipment
• Farm machinery
• Retirement plans and proceeds from life insurance
• Photographs
• Clothing
• Up to 1/4th of an acre for a burial plot
• Furniture, TV, radio, sewing machine, cooking utensils, tableware, and refrigerator
• Up to $35 in value for a watch
• Wedding ring
• Stove and fuel for 60 days
• Prescription health aids
• Up to $50 for books
• Crime victim compensation
• Up to $7,500 for personal injury recoveries
• Property from a business partnership
• Wrongful death recoveries if you depended n the deceased for support
• Up to $600 for tools of the trade

If you still owe money on your car, you may be able to keep it by redeeming the portion you owe or reaffirming the debt with your lender. If you have more than $2,400 in equity in your car, you may be able to keep it by paying the trustee the balance.

Chapter 7 Bankruptcy Information

If the majority of your debts are dischargeable, which means they are not government debts or certain debts owed to individuals, like back child support payments, you may be able to file Chapter 7 bankruptcy and discharge many of them. Chapter 7 requires passing a means test, which compares your income to others in your state. You must make at or below the median level to qualify.

Chapter 13 Bankruptcy Information

Chapter 13 bankruptcy requires you to repay your remaining debt after your non-exempt assets are liquidated. This type of bankruptcy works for those who have too much income to file Chapter 7 or who have many debts that cannot be discharged.