New York Bankruptcy Exemptions - Part One
By Peter Orville, Attorney at Law on Aug 9, 2007 in Bankruptcy Practice and Procedure, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Information, New York, State Specific Bankruptcy Issues
Bankruptcy law allows you to “exempt” certain property, which means you can keep and protect exempt property from creditors and the trustee when you file a Chapter 7 bankruptcy. The basic purpose of bankruptcy is to allow someone deep in debt to discharge the debt and get a “fresh start”. To help you get your fresh start, the bankruptcy law allows you to keep your property.
Exempt property is determined by New York State law if you have lived in New York for at least two years. New York has “opted out” of the Federal Bankruptcy Exemptions and has replaced them with a list of property that can be exempted in a bankruptcy case. The decision to file a chapter 7 or chapter 13 or to file bankruptcy at all can turn on what property you can and cannot exempt, and to what extent.
When you file for bankruptcy you claim an exemption in certain types of property. The list of exempt property in New York and the extent to which it is exempt is found in the NYS Debtor and Creditor Law. Some examples are: Up to $2,400 equity in you vehicle; $2,500 in household goods, and $600 in tools. You can protect up to $2,500 in cash, but not if you are claiming a homestead exemption. When both a husband and wife file a joint petition, EACH gets the exemption amount in their property.
Go to Part Two - Unlimited Exemptions
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