New York State Chapter 7 Exemptions
Keeping Your Property in a Chapter 7 Bankruptcy
If you are deep in debt, you may have come to realize that filing for Chapter 7 bankruptcy may offer you the fresh start that you truly need and deserve. However, you may be worried about losing your valuable property.
With bankruptcy exemptions, you can keep certain property when filing for Chapter 7. If you live in the Bronx, you have the right to choose between New York state's exemptions and the federal exemptions.
At the Law Offices of David Brodman, we know how important it is that you choose the right bankruptcy exemptions. We will carefully review your situation and help you determine which set of bankruptcy exemptions would benefit you the most.
Let us help you choose the right exemptions in your Chapter 7 bankruptcy. Reach out to our firm in The Bronx today!
Chapter 7 Exemptions Under New York State Law
Chapter 7 allows you to discharge or "wipe out" most of your debt. In exchange for this debt relief, you may have to give up certain property to the bankruptcy trustee, who will liquidate those assets and use the money to repay your creditors. Bankruptcy exemptions allow you to keep certain essential property. In many Chapter 7 cases, debtors get to keep all of their property.
Some states require that debtors use their set of exemptions, while others allow bankruptcy filers to choose between their state's exemptions or the federal exemptions. Under New York bankruptcy law, you get to choose between the state and federal exemptions.
Examples of how New York's bankruptcy exemptions compare to federal exemptions include:
- Homestead Exemption - New York: $150,000, $125,000, or $75,000 | Federal: $22,975
- Vehicle Exemption - New York: $4,000 | Federal: $3,675
- Life Insurance Exemption - New York: Death benefit fully exempt | Federal: Death benefit fully exempt
- Personal Property Exemption - New York: $10,000 | Federal: $12,500
- Wildcard Exemption - New York: $1,000 (if you do not claim the homestead) | Federal: $1,225, plus $11,500 of unused homestead
- Retirement Exemption - New York: $1,245 for IRAs | Federal: $1,245 for IRAs
As far as retirement accounts, most others are fully exempt under the New York and federal bankruptcy exemptions. Additionally, all values are doubled for husbands and wives who file jointly.
Most Chapter 7 Bankruptcy cases are handled for $1400, and that includes everything!
Of note, the following counties have a New York state homestead exemption amount of $150,000:
- New York
Learn More About State and Federal Bankruptcy Exemptions
When you take a look at the big picture, New York's scheme provides more generous life insurance and homestead exemptions, while the federal scheme has a more generous wildcard exemption.
For a more detailed list of the state and federal bankruptcy exemptions, how to avoid bankruptcy mistakes, and other information about filing for bankruptcy, contact a Bronx attorney from the Law Offices of David Brodman.
Find out more about bankruptcy exemptions available in New York. Give us a call today for your free consultation at (718) 354-8027.
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