NY Property Exemptions

New York State Bankruptcy Exemptions:

As of January 23, 2011, for the first time ever, New York residents have a choice between New York State Exemptions and the Federal Exemptions.

In addition, the New York Exemptions have been greatly increased.

Both the New York and the Federal Exemption schedules adjust for Cost of Living. New York State Exemptions adjust every 3 years beginning on April 1, 2012.

The Federal Exemptions have been adjusted every 3 years beginning back on April 1, 1998.

The following charts give you an example of the differences in the two exemption schedules available:

NYS Exemptions

Federal Exemptions

Special Exemptions ONLY available under the New York Exemption Schedules:

New York state college choice tuition savings plans:

  • One hundred percent of monies in an account established in connection with a scholarship program established pursuant to such article is exempt;
  • One hundred percent of monies in an account is exempt where you are the account owner and designated beneficiary of such account and is a minor; and
  • An amount not exceeding ten thousand dollars in an account, or in the aggregate for more than one account, is exempt where you are the account owner of such account or accounts.

Life Insurance Policies (as quoted from Insurance Law § 3212):

  • If a policy of insurance has been or shall be effected by any person on his own life in favor of a third person beneficiary, or made payable otherwise to a third person, such third person shall be entitled to the proceeds and avails of such policy as against the creditors, personal representatives, trustees in bankruptcy and receivers in state and federal courts of the person effecting the insurance.
  • If a policy of insurance has been or shall be effected upon the life of another person in favor of the person effecting the same or made payable otherwise to such person, the latter shall be entitled to the proceeds and avails of such policy as against the creditors, personal representatives, trustees in bankruptcy and receivers in state and federal courts of the person insured. If the person effecting such insurance shall be the spouse of the insured, he or she shall be entitled to the proceeds and avails of such policy as against his or her own creditors, trustees in bankruptcy and receivers in state and federal courts.
  • If a policy of insurance has been or shall be effected by any person on the life of another person in favor of a third person beneficiary, or made payable otherwise to a third person, such third person shall be entitled to the proceeds and avails of such policy as against the creditors, personal representatives, trustees in bankruptcy and receivers in state and federal courts of the person insured and of the person effecting the insurance.
  • The person insured pursuant to paragraph one of this subsection or the person effecting the insurance other than the spouse of the insured pursuant to paragraph two hereof, and the person effecting the insurance pursuant to paragraph three hereof, or the executor or administrator of any such persons, or a person entitled to the proceeds or avails of such policy in trust for such persons shall not be deemed a third person beneficiary, assignee or payee.

Annuity contracts:

The benefits, rights, privileges and options which, under any annuity contract are due or prospectively due you if you paid for the annuity contract and it is reasonably required for you and your dependants and purchased more than six months prior to the bankruptcy.