Bankruptcy Exemptions in New York
What property you can keep in bankruptcy in New York: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: New York lets an individual filer choose. The filer may use New York's own bankruptcy exemptions (Debtor and Creditor Law Article 10-A, which brings in the CPLR 5205 and 5206 exemptions) or, instead, the federal bankruptcy exemptions in 11 U.S.C. N.Y. Debt. & Cred. Law § 285
| State or federal exemptions | New York lets an individual filer choose. The filer may use New York's own bankruptcy exemptions (Debtor and Creditor Law Article 10-A, which brings in the CPLR 5205 and 5206 exemptions) or, instead, the federal bankruptcy exemptions in 11 U.S.C. 522(d). Debtor and Creditor Law § 284 (https://www.nysenate.gov/legislation/laws/DCD/284) still says New York residents may not use the 522(d) exemptions, but § 285 allows the federal choice notwithstanding any inconsistent provision of law. Source: N.Y. Debt. & Cred. Law § 285 |
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| Homestead exemption | A principal residence (a house and lot, co-op shares, a condominium unit, or a mobile home) is exempt up to a value above liens that depends on the county. For cases and enforcement starting on or after April 1, 2024, the New York Department of Financial Services lists the adjusted homestead amounts as $204,825, $170,700 and $102,400. The statute sets three county tiers: Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam (base $150,000); Dutchess, Albany, Columbia, Orange, Saratoga and Ulster (base $125,000); and all other counties (base $75,000). The homestead exemption has no acreage limit; it is limited by dollar value. Statute text with the base amounts and county tiers: https://www.nysenate.gov/legislation/laws/CVP/5206. The DFS table shows each tier's history from its base amount: $75,000 rising to $102,400, $125,000 to $170,700, and $150,000 to $204,825 (2024). Amounts are adjusted every three years; DFS says the next adjustment is April 1, 2027. A family burial ground (CPLR 5206(f)) is limited to one-fourth of an acre. |
| Car exemption | One motor vehicle up to $5,500 in value above liens and encumbrances, or $13,625 if the vehicle has been equipped for use by a disabled filer (amounts effective April 1, 2024). The statute text (https://www.nysenate.gov/legislation/laws/DCD/282) shows base amounts of $4,000 and $10,000; DFS adjusts them every three years (next adjustment April 1, 2027). |
| Wildcard exemption | New York has no general wildcard exemption for any kind of property. Instead, a filer who does not claim the homestead exemption and has fully used the personal-property exemptions subject to the aggregate cap may also exempt cash (including bank deposits, savings bonds and tax refunds) up to the lesser of the unused part of that cap or a set amount. The statute's base figures are a $10,000 cap and $5,000 of cash; the Department of Financial Services lists the adjusted amounts as $13,625 and $6,825 effective April 1, 2024. Separately, if no homestead exemption is claimed, $1,325 of personal property, bank account or cash is exempt (base $1,000). Adjusted amounts from the DFS table (https://www.dfs.ny.gov/industry_guidance/exemption_from_judgments), which lists $13,625 for Debt. & Cred. Law § 283(1) and (2)(b), $6,825 for § 283(2)(c), and $1,325 for CPLR 5205(a)(4), (6) and (9). |
| Retirement accounts | IRAs and Roth IRAs, Keogh (HR-10) plans, employer plans qualified under Internal Revenue Code section 401, and section 457 plans are treated as spendthrift trusts and are exempt, and 100% of payments from them is exempt. Additions made within 90 days before the claim, or that are voidable as fraudulent transfers, are not protected, and the exemption does not override qualified domestic relations orders or support orders. In bankruptcy, New York also exempts the right to receive payments under a pension, profit-sharing, annuity or similar plan to the extent provided in the Debtor and Creditor Law. Federal law (11 U.S.C. 522(b)(3)(C)) separately protects tax-exempt retirement funds in bankruptcy. The CPLR 5205(c) list read does not mention 403(b) plans by name. |
| Wages | 90% of the filer's earnings for personal services earned within 60 days before (and any time after) an income execution or court motion is exempt. A court can find that part of that amount is not needed for the reasonable requirements of the filer and dependents. Debtor and Creditor Law § 282 makes the CPLR 5205 exemptions available in bankruptcy. |
More New York bankruptcy
FAQ
Can you use the federal bankruptcy exemptions in New York?
New York lets an individual filer choose. The filer may use New York's own bankruptcy exemptions (Debtor and Creditor Law Article 10-A, which brings in the CPLR 5205 and 5206 exemptions) or, instead, the federal bankruptcy exemptions in 11 U.S.C. 522(d).
How much home equity is protected in bankruptcy in New York?
A principal residence (a house and lot, co-op shares, a condominium unit, or a mobile home) is exempt up to a value above liens that depends on the county. For cases and enforcement starting on or after April 1, 2024, the New York Department of Financial Services lists the adjusted homestead amounts as $204,825, $170,700 and $102,400. The statute sets three county tiers: Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam (base $150,000); Dutchess, Albany, Columbia, Orange, Saratoga and Ulster (base $125,000); and all other counties (base $75,000). The homestead exemption has no acreage limit; it is limited by dollar value.
Can I keep my car in bankruptcy in New York?
One motor vehicle up to $5,500 in value above liens and encumbrances, or $13,625 if the vehicle has been equipped for use by a disabled filer (amounts effective April 1, 2024).
Does New York have a wildcard exemption?
New York has no general wildcard exemption for any kind of property. Instead, a filer who does not claim the homestead exemption and has fully used the personal-property exemptions subject to the aggregate cap may also exempt cash (including bank deposits, savings bonds and tax refunds) up to the lesser of the unused part of that cap or a set amount. The statute's base figures are a $10,000 cap and $5,000 of cash; the Department of Financial Services lists the adjusted amounts as $13,625 and $6,825 effective April 1, 2024. Separately, if no homestead exemption is claimed, $1,325 of personal property, bank account or cash is exempt (base $1,000).
Are retirement accounts protected in bankruptcy in New York?
IRAs and Roth IRAs, Keogh (HR-10) plans, employer plans qualified under Internal Revenue Code section 401, and section 457 plans are treated as spendthrift trusts and are exempt, and 100% of payments from them is exempt. Additions made within 90 days before the claim, or that are voidable as fraudulent transfers, are not protected, and the exemption does not override qualified domestic relations orders or support orders. In bankruptcy, New York also exempts the right to receive payments under a pension, profit-sharing, annuity or similar plan to the extent provided in the Debtor and Creditor Law.
Are wages protected in bankruptcy in New York?
90% of the filer's earnings for personal services earned within 60 days before (and any time after) an income execution or court motion is exempt. A court can find that part of that amount is not needed for the reasonable requirements of the filer and dependents. Debtor and Creditor Law § 282 makes the CPLR 5205 exemptions available in bankruptcy.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.