New York Bankruptcy Exemptions: What You Get to Keep

New York is one of a minority of states that lets you choose between two complete exemption systems when you file bankruptcy: New York's own state exemptions, or the federal bankruptcy exemptions under 11 U.S.C. § 522(d). You pick whichever set protects more of your property, but you cannot mix items from both. Most other states force you to use only the state list. New York's headline protection is its homestead exemption, which is tiered by county and, as adjusted effective April 1, 2024, ranges from roughly $102,400 in upstate and rural counties to $170,700 in a middle band of counties and up to $204,825 in the downstate metro counties. Because New York lets you keep this much home equity, most homeowners use the state set; many renters use the federal set for its larger wildcard.

New York's homestead exemption, by county

The homestead exemption protects equity in a home you own and occupy as a principal residence (a house, condo, co-op, or mobile home). It is set by CPLR § 5206 and is divided into three county tiers. As adjusted effective April 1, 2024, the protected amounts are approximately:

• $204,825 — Kings (Brooklyn), Queens, New York (Manhattan), Bronx, Richmond (Staten Island), Nassau, Suffolk, Rockland, Westchester, and Putnam counties.
• $170,700 — Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster counties.
• $102,400 — all remaining counties in the state.

These figures are indexed and adjusted every three years, with the next adjustment scheduled for April 1, 2027, so confirm the current number before you rely on it. The exemption applies per debtor, so a married couple who both own and file can often double the protection on a jointly owned home. The homestead covers equity — the value left after mortgages and liens — not the full market value of the home.

Vehicle, personal property, and the wildcard

Beyond the home, New York's exemptions (found in CPLR § 5205 and Debtor and Creditor Law §§ 282-283) let you keep ordinary belongings and a vehicle. As adjusted effective April 1, 2024, the key amounts are roughly:

• Motor vehicle: about $5,500 in equity in one car (Debtor and Creditor Law § 282(1)). A higher amount applies if the vehicle has been equipped for use by a disabled debtor — confirm the current figure.
• Tools of the trade: about $4,075 in professional tools, instruments, and farm machinery needed for your work.
• Cash / wildcard: about $6,825 in cash, bank deposits, U.S. savings bonds, or tax refunds — but only for a debtor who does not claim the homestead exemption (Debtor and Creditor Law § 283(2)). This is New York's substitute for a true wildcard: if you keep your house, you generally lose this cash protection.
• Household property: furniture, a refrigerator, a TV, a radio, a computer and cell phone, a stove and fuel, food, schoolbooks and other books up to a limit, religious texts, domestic animals with their food, wearing apparel, a wedding ring, and a watch, jewelry, and art up to a capped value — these are listed item-by-item in CPLR § 5205(a) rather than as one lump sum.
• Bank account: a separate exemption protects a baseline amount of money in a bank account (about $3,425 under CPLR § 5205(l)), and an additional floor protects accounts holding directly deposited exempt income such as Social Security or wages.

Retirement accounts (most 401(k)s, IRAs, and pensions), Social Security, unemployment, veterans' and disability benefits, child support, and the cash value of certain life insurance and annuities are also broadly protected. Like the figures above, the personal-property amounts are adjusted every three years (next adjustment April 1, 2027).

Choosing the federal exemptions instead

Since 2011, New York has allowed debtors to elect the federal bankruptcy exemptions under 11 U.S.C. § 522(d) as an alternative to the state set. This is the federal baseline that many states refuse to offer. The federal homestead exemption is much smaller than New York's — about $31,575 as of the April 1, 2025 federal adjustment — so homeowners with real equity almost always do better with the New York homestead. But the federal set includes a generous wildcard: roughly $1,675 plus up to about $15,800 of any unused homestead exemption (as of April 1, 2025), which you can apply to any property, including cash and a bank account. Renters and debtors with little home equity often choose the federal set for that reason. Confirm the current federal figures, which also adjust every three years (next adjustment April 1, 2028).

Two rules govern the choice. First, you must pick one system entirely — no mixing a state homestead with a federal wildcard. Second, a married couple filing a joint case must both choose the same system. Run the numbers both ways before you commit; the right choice depends on whether you own a home with equity and how much cash and personal property you need to protect.

An important catch: the residency rule

To use New York's exemptions at all, federal bankruptcy law (11 U.S.C. § 522(b)(3)) requires that you have been domiciled in New York for the 730 days (about two years) before filing. If you moved to New York more recently, you may be required to use the exemptions of the state where you lived during the earlier look-back period, and that prior state may force you onto its own list or, in some cases, back to the federal set. New residents should confirm which state's exemptions apply before assuming New York's homestead protects them.

How this compares, and how exemptions work

Exemptions matter most in Chapter 7, where the trustee can sell non-exempt property to pay creditors; anything that fits within an exemption stays with you. In Chapter 13, exemptions help set the minimum you must repay unsecured creditors through your plan. Exemptions do not erase a mortgage or car loan — if you want to keep collateral, you must keep paying the secured lender. They also do not defeat valid tax liens, domestic-support obligations, or judgments that attached before you filed in certain circumstances.

New York is also more protective than the federal floor in a related area: wage garnishment. Federal law caps garnishment at 25% of disposable earnings, while New York generally limits an income execution to the lesser of 10% of gross income or 25% of disposable earnings, with no garnishment allowed when earnings fall below a multiple of the minimum wage. That protection runs alongside bankruptcy, not inside it.

Where to verify and get help

The dollar figures above change, so verify the current numbers before filing. The New York State Department of Financial Services publishes the official, adjusted exemption amounts (its current chart reflects the April 1, 2024 adjustment, with the next due April 1, 2027). The underlying statutes are CPLR §§ 5205-5206 and Debtor and Creditor Law §§ 282-283, available through the New York State Senate's official legislation website. For consumer-protection questions, complaints about creditors or debt collectors, and referrals, contact the New York State Attorney General's Bureau of Consumer Frauds and Protection. Because exemption planning and the state-versus-federal choice carry real consequences, consider consulting a licensed New York bankruptcy attorney or an approved nonprofit credit-counseling agency before you file.

Official New York Sources

This page is based on New York law. Limits and deadlines change — verify the current details directly with the official New York sources below. This is general legal information, not legal advice.

• New York State Attorney General - Consumer Issues (Consumer Frauds and Protection Bureau) — official New York agency.
• File a complaint: Consumer issues - New York State Attorney General
• New York General Business Law Section 349 - Unfair, deceptive, or abusive acts and practices

Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of New York’s own rules.