New York Bankruptcy Exemptions - Part Two - Unlimited Exemptions
By Peter Orville, Attorney at Law on Aug 10, 2007 in Bankruptcy Practice and Procedure, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Information, New York, Protecting Assets In Bankruptcy, Role Of The Lawyer, State Specific Bankruptcy Issues
Some New York State bankruptcy exemptions are unlimited. For example, an IRA or Erisa Qualified Retirement Plan is entirely exempt. A wedding ring is fully exempt, whatever it’s value. But you’d better be careful, because an engagement ring, that is not part of the wedding band, and was not given in the wedding ceremony, is not exempt, and can be taken right off your finger by the trustee at the meeting of creditors.
Another unlimited exemption is the value of a life insurance policy. But not always. In the Western District of NY, an area encompassing Buffalo, Rochester and Elmira, the Bankruptcy Courts have held that if a husband and wife file a joint bankruptcy petition, and each is the beneficiary of the other’s policy, then the cash value becomes property of the bankruptcy estate, and can be taken by the chapter 7 trustee.
As always, be sure to review with your lawyer your own particular situation.
Go to Part Three – The Homestead Exemption
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