New York Bankruptcy Exemptions

New York bankruptcy exemptions are mandatory for the debtors, which means they do not have an option to use the federal set of exemptions as a replacement. However, you can use the federal supplemental exemptions in conjunction with the exemptions offered by the state of New York.

Wild Card

Wildcard exemptions are not available in the state of New York.


The wages are exemptible in this state in the following manner.

- For dairy farmers, up to ninety percent of the income earned from the sale to milk dealers
- Up to ninety percent of wages unpaid but earned at least sixty days prior to filing bankruptcy petition (a few militia members can exempt full wages)

Tools Of Trade

The New York bankruptcy exemptions can be availed for tools of trade also in the following ways.

- Sword, arms, horse, equipment, emblem, medal, and uniforms belonging to a debtor who is a member of military can be exempted in full.
- You can also exempt implements, books, tools, and furniture that you reasonably need for your profession. Besides that, food for team for sixty days, team, and farm machinery are also exemptible. The maximum exemption limit is $600 (aggregate total)

Public Benefits

Certain types of public benefits are exemptible in full value, such as Crime victim compensation, Workers’ compensation benefits, Veterans’ benefits, Unemployment compensation benefits, Social Security benefits, Local public assistance and home relief, and Aid for aged, disabled, or blind persons.

Personal Property

You can avail New York bankruptcy exemptions in this category as per the following rules.

- Tax refunds and cash deposits can be exempted up to a maximum value of either $2500 or the unused portion of the $5000 of exemptions allowed for the basic personal properties (see below), whichever is less.
- You can also keep the recoveries for lost future earnings up to an extent that is reasonably necessary for support.
- Recovery for personal injury is also exemptible – maximum limit is 100% but only for up to twelve months
- 100% of any compensation relieved as part of a wrongful death compensation claim for a person that the debtor was dependent on.
- Up to $2,400 of equity in motor vehicle
- 100% of college tuition trust fund, health aids, and security deposits made for utility services (such as telephone or electricity connection) or to the landlord (if you are living as a tenant)
- Up to ¼ acre in burial plot without a structure
- 90% of income from spendthrift trust principal provided the trust was not established by the debtor
- 100% of any proceeds received for damage to exempt property but for a period of one year only
- An aggregate total of $5000 of exemptions can be availed for a long list of some basic properties that include one watch up to $35, one wedding ring, utensils and dishes for eating and cooking, one television, one radio, one refrigerator, household furnishings, clothing, food for family for sixty days, up to $450 total (out of the quota of $5000) for animals and food, seat or pew in place of worship, books up to $50, school books used by family, family pictures, family bible, one sewing machine, and stoves with fuel for 60 days.


New York bankruptcy exemptions are also allowed for the following types of pensions; there is no maximum limit (you can exempt 100%).

- Volunteer firefighter benefits
- Volunteer ambulance worker benefits
- Village police officer pensions
- State employee pensions
- Public retirement benefits
- Teacher pensions
- ERISA-qualified benefits, including Roth IRAs and IRAs – up to an extent that is needed for support
- Federal pension exemptions


Three types of exemptions are available in the miscellaneous category, including child support payments, alimony payments, and any property that belongs to a business partnership where you are one of the partners. There is no maximum limit, which means you can exempt 100% of the same.


New York bankruptcy exemptions can be availed for the following types of insurance policies and proceeds.

- Annuity contract benefits (if debtor had purchased the contract at least 6 months prior to filing bankruptcy petition) – up to a maximum value of five thousand dollars
- Up to $400 per month in disability and illness benefits
- Avails or proceeds from a life insurance policy is also exemptible provided the policy is in the name of the debtor’s spouse and that the debtor is not the beneficiary

Homestead Properties

Homestead properties that can qualify for New York bankruptcy exemptions include mobile home, co-op, condo, or any other real property. The maximum limit is $50000.

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One Response to “New York Bankruptcy Exemptions”

  1. Martin says:

    An informative article on the rules of exemptions in case of economic failure of the person in the state New York. No trump card is available. Income from the business of cattle farming is under exemption up to some fixed extent. Arms trading to armed forces are exempted. Economic failure is under exemption if you are in a possession of a personal property. Accidental recovery is also under exclusion. As per the law the amount invested in different life long saving schemes is exempted .Few more exclusions are included in misc category. If you are invested in Insurance policies that amount can be exempted. The amount should be invested in different annuity options available in the market. If you are in the medical profession the premium amount should be in your name or your life partner’s name. Exemption to certain limit is applicable if you are an owner of farmhouse. If every one will follow the above mentioned points, it is really sure he or she will get the benefit.

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