New York Bankruptcy Laws
Federal and state laws protect the bankruptcy process. These laws are not the same in every state and can be somewhat complicated. Before you decide to file bankruptcy, make sure you have all the information about how the laws will apply to you. You can find answers by speaking with a local bankruptcy lawyer. When you fill out the free form below, you can get a free case evaluation with an attorney in your area.
New York bankruptcy laws are designed to provide debtors with a place to turn when debt gets out of hand. These laws outline the way in which bankruptcy proceedings typically occur in New York.
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 on 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.
New York Chapter 7 Bankruptcy Law
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.
New York Chapter 13 Bankruptcy Law
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.
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