What Are Bankruptcy Exemptions?

large family home

With a bankruptcy filing, you may be granted more grace than you initially assumed. That is, you may be eligible for bankruptcy exemptions, which may allow you to protect your essential property from a bankruptcy trustee who would otherwise seize and sell it. Read on to discover the function of bankruptcy exemptions and how a seasoned Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help you get your financial footing back.

What are the bankruptcy exemptions in New York State?

Notably, you may opt for New York State bankruptcy exemptions so long as you have been a resident here for at least two years. Without further ado, the exemptions that this state offers read as follows:

  • Homestead exemption: in Rockland County, this may protect up to $150,000 worth of equity in your home, mobile home, cooperative, apartment, or condominium.
  • Motor vehicle exemption: this may protect up to $4,825 worth of equity in your motor vehicle, and up to $11,975 if your motor vehicle is equipped for an individual with a disability.
  • Personal injury exemption: this may protect up to $9,000 worth of equity in your settlement or verdict for a personal injury lawsuit.
  • Wildcard exemption: this protects any non-real estate personal property of your choice or up to $1,175 of unused homestead exemption.
  • Government benefits: this may protect your veteran benefits, social security benefits, etc.
  • Retirement plans: this may protect your IRAs, 401k plans, etc.

There are a couple of other exemptions worth mentioning, namely the tools of the trade exemption and personal property exemption. It also must be noted that each person is individually entitled to such New York State bankruptcy exemptions. Meaning that a married couple jointly filing for bankruptcy may claim an exemption amount that is double what is mentioned above.

What are the exemptions offered at the federal level?

There is also the option to elect federal bankruptcy exemptions. The federal exemption amounts are slightly skewed from that of New York State, and they read as follows:

  • Homestead exemption: up to $27,900.
  • Motor vehicle exemption: up to $4,450.
  • Personal injury exemption: up to $25,150.
  • Wildcard exemption: up to $1,475 and unused homestead exemption of up to $13,950.

Of note, federal exemptions may offer similar protections for government benefits, retirement benefits, etc. With all that being said, you must understand that you must pick between this or the New York State exemptions, not both. Ultimately, your decision may be based on what you are most concerned about protecting.

All in all, to thoroughly preserve your assets throughout your proceedings, you must turn to a competent Rockland County bankruptcy attorney. So please get in touch with us at The Law Offices of Allen A. Kolber, Esq. as soon as you get the free chance.