Long Island and New York City Bankruptcy Attorneys
New York State Bankruptcy Exceptions Chart
| No. | Type of Asset | Explanation | Amount of the Exception | Legal Citation |
|---|---|---|---|---|
| I | Cash, Exemption | Includes: cash, bank accounts, saving bonds, and tax refunds |
$5,000 – Only available if not using Homestead Exemption. This exemption will be reduced if using more than $5,000 of Personal Property Exemption or if exempting an annuity that was purchased within the past 6 months. |
N.Y. Debtor and Creditor Law § 283(2) |
| II | Homestead Exemption | Home, co-op, condo or mobile home |
$150,000 for the following counties: Richmond, Kings, Queens, New York, Bronx, Nassau, Suffolk, Westchester, Rockland and Putnam. $125,000 for the following counties: Dutchess, Orange, Ulster, Columbia, Albany and Saratoga $75,000 for all other counties. |
N.Y. Civil Practice Law § 5206(a) |
| III | Divorce Awards | Payments pursuant to an award in a divorce action, for the support of a wife, where the wife is the judgment debtor, or for the support of a child, where the child is the judgment debtor. | This is exempt to the extent reasonably necessary for the support of the debtor and any dependents of the debtor. |
N.Y. Civil Practice Law § 5205(d)(3) N.Y. Debtor and Creditor Law § 282(2)(d) |
| IV | Cars | One per debtor | $4,000 limit. (If motor vehicle has been equipped for use by a disabled debtor then the limit is $10,000). | N.Y. Debtor and Creditor Law § 282(1) |
| V | New York State College Choice Tuition Savings Program Trust Fund | Funds in an account created pursuant to article fourteen-A of the education law are exempt from application to the satisfaction of a money judgment as follows: |
(a) 100% of monies in an account established in connection with a scholarship. (b) 100% of monies in an account is exempt where the judgment debtor is the account owner and designated beneficiary of such account and is a minor. (c) An amount not exceeding $10,000 in an account, or in the aggregate for more than one account, is exempt where the judgment debtor is the account owner. |
N.Y. Civil Practice Law § 5205(I) |
| VI | Personal Property | Stoves and heating equipment with fuel for 120 days, sewing machine, books, photos and family portraits ($500 limit), seat or pew at place of public worship, domestic animals and food for 120 days ($1,000 limit), wearing apparel, household furniture, refrigerator, radio, television, computer, cell phone, crockery, tableware, cooking utensils, health aids, wedding ring, watch, jewelry and are ($1,000 limit), tools of trade ($3,000 limit). If no homestead exemption is claimed, then $1,000 in personal property, bank account or cash. | The exemption is only available if not using the Homestead Exemption. The aggregate value of assets allowed to be exempt under this section is limited to $10,000. This exemption will be reduced if exempting an annuity that was purchased within the past 6 months. | N.Y. Civil Practice Law § 5205(a)(1-9) |
| VII | Wrongful Death | Payment due to the wrongful death of an individual of whom the debtor was a dependant. | To the extent reasonably necessary for the support of the debtor and any dependents of the debtor. | N.Y. Debtor and Creditor Law § 282(3)(ii) |
| VIII | Pension and Retirement Benefits | Payments under a stock bonus, pension plan such as 401(k), 403(b) or other ERISA approved plan, IRA, profit sharing or similar plans are exempt. | To the extent reasonably necessary to support debtor and dependants unless the plan was established by the debtor or an insider employed the debtor. |
N.Y. Debtor and Creditor Law § 282(2)(e) N.Y. Civil Practice Law § 5205(c) N.Y. Ins. Law § 4607 |
| IX | Personal Injury Awards | Payment on account of personal bodily injury | $7,500 which does not include pain and suffering or compensation for actual pecuniary loss. | N.Y. Debtor and Creditor Law § 282(3)(iii) |
| X | Wild Card for personal property, bank accounts or cash | If no Homestead Exemption is claimed | $1,000 | N.Y. Civil Practice Law § 5205(a)(9) |
| XI | Cemetery Exemption | Land, set apart as a family or private burying ground is exempt upon the following conditions only: 1. A portion of it must have been actually used for that purpose; 2. It must not exceed in extent one-fourth of an acre; and, 3. It must not contain any building or structure, except one or more, vaults or other places of deposit for the dead, or mortuary monuments. | Completely exempt | N.Y. Civil Practice Law § 206(f) |
| XII | Crime Victim Award | An award under a crime victim’s reparation statute | Exempt |
N.Y. Debtor and Creditor Law § 282(3)(I) N.Y. Exec. Law § 632 |
| XIII | Future Earnings | A payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is a dependent | To the extent reasonably necessary for the support of the debtor and any dependents of the debtor. | N.Y. Civil Practice Law § 5205(h)(1) |
| XIV | Health Aids: Medical and Dental Accessories | Completely exempt | N.Y. Civil Practice Law § 5205(h)(1) | |
| XV | Health Aids: Guide, service or hearing dog | Completely exempt | N.Y. Civil Practice Law § 5205(h)(2) | |
| XVI | Insurance: Annuity | The use of this exemption may limit the cash and personal property exemption. | Exempt unless a court finds a portion of such payments are not necessary to meet the debtor’s ordinary financial needs. Annuities purchased within 6 months of filing are limited to $10,000. |
N.Y. Ins. Law § 3212 N.Y. Debtor and Creditor Law § 283(1) |
| XVII | Insurance: Disability Insurance | Completely exempt |
N.Y. Ins. Law § 3212(c) N.Y. Debtor and Creditor Law § 282(2)(c) |
|
| XVIII | Social Security | Completely exempt | N.Y. Debtor and Creditor Law § 282(2)(a) | |
| XIX | Security Deposits | Completely exempt | N.Y. Civil Practice Law § 5205(g) | |
| XX | Public Assistance | Completely exempt |
N.Y. Debtor and Creditor Law § 282(2)(a) N.Y. Soc. Serv. Law § 137 |
|
| XXI | Insurance: Life Insurance | Proceeds from life insurance policies | Exempt |
N.Y. Ins. Law § 3212(b) N.Y. Debtor and Creditor Law § 282(2)(e) |
| XXII | Partnership | Property of a partnership | Exempt | N.Y. Partnership Law § 5 1(c) |
| XXIII | Trusts | Completely exempt | N.Y. Civil Practice Law § 205(c) | |
| XXIV | Trust Funds | Income | 90% is exempt. | N.Y. Civil Practice Law § 5205(d)(1) |
| XXV | Unemployment Compensation | Completely exempt |
N.Y. Civil Practice Law § 5205(a)(7) N.Y. Labor Law § 595 N.Y. Debtor and Creditor Law § 282(2)(a) |
|
| XXVI | Veterans’ Benefits | Completely exempt | N.Y. Debtor and Creditor Law § 282(2)(b) | |
| XXVII | Wages | Earnings received within 60 days or any time after income execution by Sheriff | 90% of the earnings for his personal services are exempt. |
N.Y. Civil Practice Law § 5205(d) N.Y. Soc. Serv. Law § 147-a |
| XXVIII | Wages: Armed Forces | Completely exempt | N.Y. Civil Practice Law § 5205(a)(9) | |
| XXIX | Workers’ Compensation | Completely exempt | N.Y. Debtor and Creditor Law § 282(2)(c) |
Non-Dischargeable Debts
Not all debts owed by individuals, corporations, or other entities are dischargeable in bankruptcy. There are certain types of debts or financial obligations which are not discharged (eliminated by the filing of Chapter 7 Bankruptcy).
The following are a list of some of these non-dischargeable debts:
- All debts or financial obligations the individual or entity that files the bankruptcy fails to list in the bankruptcy petition;
- Student loans are generally not dischargeable unless there is a hardship condition which can be proved. There may be Statute of Limitations issues with regard to the collection of student loans. However these issues apply to New York State Law and not to the Federal Bankruptcy issue of dischargeability.
- Taxes: Taxes due to Federal, State, or City or other municipal or semi-municipal agencies that become due within three years of the filing of bankruptcy are not dischargeable.
- Criminal penalties and fines: Penalties related to criminal prosecutions, court ordered judgments in criminal matters, and court fees are not dischargeable in bankruptcy.
- Spousal maintenance (alimony) and child support payments: Alimony (spousal maintenance) and child support payments are not dischargeable in bankruptcy.
- Debts created by fraud. Debts created by fraudulent or illegal activity are dischargeable in bankruptcy.
The foregoing is a list of the most common non-dischargeable debts in bankruptcy. There are other non-dischargeable debts. Every individual’s case is unique. There are circumstances involved in each bankruptcy filing that may cause certain debts to be non-dischargeable.
