NYS Bankruptcy Laws And Assets You Can Keep

If your thinking NYS bankruptcy laws are the same as every state in the country then, you would be wrong.

The U.S. bankruptcy code governs how bankruptcy cases are administered and regulated through out the country. This includes the appointment of trustees, federal court judges to the filing and submission of bankruptcy forms however, this is where the similarities can end.

The key difference, and its an important one, is in relation to the assets and properties you can keep without your creditors getting their hands on them. This is commonly referred to as property exemptions and there are Federal and State laws that decide what you can and cannot keep.

NYS Bankruptcy Laws On Exemption Property

Each state in the United States has the choice to use the Federal or their own state exemption laws. New York decided to go with their own  State laws regarding exempt property. Although, this gives the State more control it certainly makes the administration of these local laws at a district and county level more complicated.

With Federal exemptions laws there is a generic set of guidelines that can be applied across United States. In New York there can different rules and regulations between each district and county. For, example a chapter 7 bankruptcy case in Syracuse can be administered differently to a chapter 7 case in Albany.

In the city of New York where geographical locations are closer a chapter 13 bankruptcy case in Brooklyn will differ from a chapter 13 case in Long Island. For these reasons you should use a local bankruptcy lawyer firm that is familiar with your districts rules and regulations.

Therefore, the New York State bankruptcy laws are governed by the state law and not the United States bankruptcy code.

The Properties You Can Exempt When You File For Chapter 7 Bankruptcy

It's essential that you and your appointed lawyer check through the list of  NYS property exemptions and make your own evaluation before you file for bankruptcy. The last thing you want to happen is to find out later in the proceedings that you lose assets you could have actually protected from your creditors.

Below is a list of general exemptions that you can protect when you file for bankruptcy in New York State. For a more comprehensive list of exemptions that relate to your district you should contact a local bankruptcy attorney.

Homestead exemption

This exemption refers to your residential property such as your house, apartment etc. The exemption relates to the equity in the house and for New York State the exemption limit can range from $50,000 to $150,000 in the counties of Suffolk, Richmond, Queens, Westchester, Rockland and Putnam. The counties of Albany, Columbia, Dutchess, Orange, Saratoga and Ulster has an exempt limit of $125,000.

These amounts are based on a single person whereas a married couple can expect up to twice the amount.

These limits may not apply to people who have resided in New York for less than 2 years. Again, a local lawyer will be able to advise you on the exact limits you will be eligible for.

Vehicle exemptions

Any automobile with a value up to $4,000 can be made exempt. If a vehicle is used for the purpose if transporting a disabled person the exemption rises to $10,000.

Tools of Trade

These exemptions relate to the tools that use as part of your trade and profession. For example, if you are professional violin player then, your violin would be exempt.

Personal Belongings

This can include household goods, clothes and cash up to a limit of $10,000.

Bankruptcy enables those facing serious financial problems to receive relief from their debts and legal protection from their creditors. Although, not all debts are exempt the NYS bankruptcy laws and court jurisdictions relating to exemptions allow the debtor the basic necessities to survive when a chapter 7 bankruptcy discharge is granted.