New York Bankruptcy Laws

There are numerous laws in place in New York in terms of bankruptcy filing. There are four courts in the state that must be used by citizens who have lived in the state for at least the last 90 days prior to filing bankruptcy in the state. Individuals will need to determine which of the four courts he or she must file under based on the county lived in. The four courts include the Eastern, Northern, Southern and Western courts.

Some additional laws to keep in mind in regards to bankruptcy filings in New York include the following.

• New York does not allow individuals to apply federal bankruptcy exemptions to his or her case. Rather, only the state's exemptions may be used.
• Real property including any type of mobile home, condo or co-op with an equity value under $10,000 can protect their home through the homestead exemption. Married couples may double that amount.
• Personal property is protected depending on the type. Most items such as clothing, church items, food for up to 60 days and appliances are protected. Appliances and other items must be under a value of $5000.
• The bankruptcy laws protect a vehicle up to $2400 in value. For additional vehicles with a loan on them, use a reaffirmation to ensure the lender does not repossess the property.

The state does have a “tools of the trade” protection for farm items, professional furniture, books, instruments and other items up to a value of $600. Keep in mind that for those who own a partnership business, property of business partnership is protected under New York's laws.

By using any of these exemptions, individuals can protect his or her property from seizure from the courts. Anything over these noted values though, may be seized, sold and the proceeds used to repay creditors.