New York Bankruptcy Exemptions

Can I Keep Bank Accounts and Household Goods?

Most people keep everything. New York and New Jersey law allows you to keep your furniture, clothes, and car up to certain limits of value. The law also gives you the right to protect other assets: bank accounts, cars– again up to certain limits.

Both New York and New Jersey have a “wild card” card exemption that protects all property up to a value of $11, 975 for most bankruptcy filers.

Can I keep my car?

Nearly all cars are protected under the bankruptcy law in New York and New Jersey. If you have a car loan or lease, you can continue to make the payments and keep the car in almost all cases. You can own a used car often worth up to $10,000 and keep your car. If your used car is worth more, there are provisions in the law that may allow you to keep it with some conditions. You should consult with us or another bankruptcy attorney to be sure.

Can I Keep My Home?

In the New York City area, most homesteads: houses, co-opts, condos, are protected by New York’s homestead protection laws. New Jersey homestead laws are not as generous, but also protect many homes. If your home is too valuable, you may not want to file a Chapter 7 bankruptcy because the Court could sell it to pay your bills. Chapter 13 bankruptcy always protects homes if a home is too valuable to be protected in a Chapter 7 bankruptcy. The best way to find out if your home is protected is to consult with us or another bankruptcy attorney to be sure.

Can I Keep My Pension and Social Security?

Your 401(k), IRA or retirement, social security is protected under bankruptcy regardless of how much you have saved in your retirement.